APHRIA INC COM NPV (OTCMKTS:APHQF) to Absorb Nuuvera in Huge Deal

1159

The last time we were discussing APHRIA INC COM NPV (OTCMKTS:APHQF) here on Street Register recently, we were mentioning an agreement between the company and Nuuvera Inc. (TSXV:NUU), a global cannabis company with a strong presence in Europe, Africa and the Middle East, whereby Aphria would provide a significant amount of cannabis to Nuuvera.

 

That’s why we were a bit surprised, although pleasantly, to learn this week that the two companies would become one in a huge transaction that has already been approved by the boards of each company.

 

APHRIA INC COM NPV (OTCMKTS:APHQF) and Nuuvera have entered into a definitive arrangement agreement pursuant to which Aphria will acquire, by way of a court-approved plan of arrangement under the Business Corporations Act (Ontario) 100% of the issued and outstanding common shares (on a fully-diluted basis) of Nuuvera. The combined company will leverage Nuuvera’s extensive international network and best-in-class manufacturing practices to become the preeminent global supplier of premium cannabis.

 

The acquisition brings an already successful partnership between Aphria and Nuuvera under the Aphria brand, reducing costs and providing the potential to unlock greater economic value from future production. The Transaction has been unanimously approved by the Board of Directors of each of Aphria and Nuuvera and is supported by the management teams of both companies as well as significant shareholders of Nuuvera. The Transaction values Nuuvera at approximately $826 million.

 

Aphria will leverage Nuuvera’s numerous relationships in Germany, Italy, Spain, the United Kingdom, Malta, Israel, Lesotho and Uruguay. Combined with Aphria’s existing agreements in Australia, the combined company establishes a leading international footprint among Canadian licensed producers, and expands Aphria’s processing and manufacturing capabilities globally.

 

As a result of the transaction, Aphria will capture the retail margin of the 77,000 kg of cannabis originally earmarked for these agreements. The combined company will unlock greater economic value from future production, including expectations of realizing supply chain efficiencies, cross-selling and up-selling to customers through a broader product portfolio, developing a more diverse customer base, integrating operations and controls and implementing best practices. Aphria will also benefit from Nuuvera’s highly-experienced, global management team and the international expansion opportunities it has secured at an accelerated pace.

 

“The combination of Aphria and Nuuvera creates a true global leader in medical cannabis with excellent potential for growth and value creation,” said Vic Neufeld, Chief Executive Office of Aphria. “This transaction, which builds on a long-standing relationship between the two companies, brings together our top tier ability to grow high-quality cannabis at a low-cost with Nuuvera’s expansive international network, expertise in processing, and access to industry leading technology. I am thrilled to welcome Nuuvera to the Aphria family and I am confident they will play a significant role in our continued success.”

 

Lorne Abony, CEO of Nuuvera, said, “The transaction provides our shareholders with significant value for their investment in Nuuvera and the opportunity to participate in the significant upside of the combined company. As part of Aphria, we will have access to every tool we need to open key international markets and execute on our growth plan as part of a stronger, well-resourced global cannabis leader.” (Source: Canada Newswire)

 

When it comes to pharmaceutical grade cannabis in Canada, we consider Aphria among the top names, and this new deal only serves to bolster that viewpoint. We’ll be very eager to continue tracking the story as Aphria cultivates a worldwide medical cannabis empire. As always, 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.

LEAVE A REPLY