APHRIA INC COM NPV (OTCMKTS:APHQF) to Make Sizable Investment in Existing Partner


The last time we discussed APHRIA INC COM NPV (OTCMKTS:APHQF) here on Street Register, we were mentioning the huge looming deal the company struck with Shopper’s Drug Mart, Canada’s largest pharmacy product and service provider.

Subject to an approval by Health Canada, Shoppers Drug Mart intends to become a licensed producer, and under the terms of the agreement, APHQF would supply Shoppers Drug Mart with Aphria-branded medical cannabis products to be sold online, and hopefully in a physical pharmacy setting at some point in the future. We’re still patiently awaiting

This week, in conjunction with a merger of APHRIA INC COM NPV (OTCMKTS:APHQF) partner, Tokyo Smoke, and DOJA, ​​a ​​premium ​​cannabis ​​lifestyle ​​brand ​​growing ​​high-quality ​​handcrafted ​​cannabis ​​flower. Aphria has committed to make a $10 million equity investment in the combined company, which is expected to be renamed Hiku Brand Company Ltd.. The combination of Tokyo Smoke and British Columbia based DOJA would bring together two premium lifestyle brands to serve the anticipated recreational cannabis market. Aphria’s investment represents an advancement of the Company’s strategy to be a leader in the recreational market, once legalized in Canada.

“This exciting announcement marks a major step forward in Aphria’s recreational cannabis strategy and represents Aphria’s first venture into the lucrative British Columbia premium cannabis market.” said Vic Neufeld, CEO of Aphria. “In Hiku, we are investing in refined, up-market brands that align with our commitment to encouraging a more dignified positioning of recreational cannabis use, something we expect will be an important and valuable differentiator for Aphria as Canada moves closer to legalizing recreational cannabis. We look forward to working closely with Hiku to support its success and brand leadership in the recreational market.”

“This strategic partnership and investment from Aphria represents the ultimate validation of Hiku’s vision to offer the leading cannabis consumer experience. We are ecstatic to be partnering again with Aphria, a proven operator and greenhouse cannabis cultivator, to bring our products to the Canadian medical and future recreational markets,” said Alan Gertner, Chief Executive Officer of Hiku. “With this landmark partnership, we have the opportunity to offer Canadians a compelling combination of craft British Columbia product, top notch branding, greenhouse supply and owned retail that will allow Hiku to have a distinct business with high quality control, high demand and high margin.”

The equity investment in Hiku builds on Aphria’s existing investment in Tokyo Smoke. On June 30, 2017, Aphria entered into a subscription agreement with Tokyo Smoke for the purchase of 140,845 common shares, for a total cost of $1,000,000. As part of an existing licensing agreement signed in September 2016, Aphria also produces and ships Tokyo Smoke branded cannabis in Canada to registered patients through the Access to Cannabis for Medical Purposes Regulations (ACMPR) system. The existing licensing agreement also contains provisions for the agreement to apply to the anticipated adult recreational use market. (Source: Marketwired)

Aphria’s investment is still subject to a number of hurdles before it can be finalized, including approval of the boards and shareholders of each company along with the normal regulatory approval process. It is our expectation that it should all be in place well before the beginning of nationwide legal recreational cannabis sales, slated for July 2018. We’ll stay up on any further developments with APHQF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!

Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in APHQF stock, short or long.