APHRIA INC COM NPV (OTCMKTS:APHQF) has long been a part of our ongoing, close relationship with Canadian cannabis companies, which we’ve singled out as the highest potential plays in the industry. That is mainly due to the difficulties brought forth by a Federal government here in the States that chooses to side with big pharma and private prison lobbies instead of adopting a progressive attitude toward legal cannabis, and the huge industry that is growing up around it both here, and around the world.
With nationwide legalization just a short time away, attitudes toward marijuana are much different North of the border, and the Canadian economy is about to get a big boost as a result. Aphria has been gearing up to serve the coming needs in a big way. The company has moved to increase its capacity for growth by a big margin.
This week APHRIA INC COM NPV (OTCMKTS:APHQF) has announced that it received a license amendment from Health Canada that provides Aphria with additional production space of 200,000 square feet, as part of its Part III expansion at its facility in Leamington, Ontario. This will more than triple the Company’s production capacity of medical cannabis from 9,000 kg annually to 30,000 kg annually.
The Health Canada license amendment falls under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The first crop cultivated and produced at the Part III expansion will be available for sale in the last week of May.
“This marks the completion of the third part of our four-part expansion plan and is another exciting milestone for Aphria,” said Vic Neufeld, Chief Executive Office of Aphria. “With more than three times the production capacity, we will continue to produce the highest-quality cannabis at one of the lowest costs in the industry. When completed early next year, our fully expanded facility will provide over 1,000,000 square feet of production space and, when combined with our strategic relationship with Double Diamond Farms and our recent acquisition of Broken Coast Cannabis, will bring our anticipated production capacity to 230,000 kg per year. This will enable Aphria to meet the expected demand from the Canadian market, while allowing a significant portion to be allocated to key established international markets.” (Source: Canada Newswire)
A report from the Canadian Parliamentary Budget Office in 2016 estimated the Canadian Market to be worth more than $5 billion annually, but those estimates are generally thought to be at the low end of the spectrum of what is possible. For companies to fully capitalize, they will need to attack it from both the medical and legal spaces simultaneously. APHQF is among those that will do just that.
As we’ve stated in the past, Aphria has demonstrated its clear intent to serve not only medical patients, but the recreational markets as well. We’ve said we would expect their aggressive growth tactics to continue, and that appears to be the case. Perhaps most exciting- Canada approaches nationwide legalization, now less than four months away. The market for adult Canadians consuming cannabis for recreational purposes could end up being one of the most exciting storylines to track in 2018. 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.