It seems rare that more than a couple of weeks pass without mentioning APHRIA INC COM NPV (OTCMKTS:APHQF) here on Street Register. The company is one of Canada’s fastest growing cannabis producers. We will likely place an extra emphasis on the cannabis space this week, even more so than usual, as the cannabis counter-culture celebration of 04/20 (“Four-Twenty”) is approaching this Friday.
In our last focus on the company we talked about the renaming of acquired subsidiary Nuuvera as Aphria International, and focus its activities on established regulated cannabis markets around the world, including where the company already has significant interests: Germany, Italy, Spain, Portugal, Malta, Lesotho, and elsewhere. This week, we got a cache of operational updates and financial highlights, including the fact that it had achieved its tenth consecutive quarter of positive adjusted EBITDA, as well as significantly lowered costs of production on a gram of cannabis.
APHRIA INC COM NPV (OTCMKTS:APHQF) CEO Vic Neufield had this to say: “We had another incredible quarter, with year-over-year revenue having more than doubled, cash costs back under $1, and our 10th consecutive quarter of positive adjusted EBITDA. After the end of the quarter, we brought additional production capacity online with our Part III expansion at Aphria One and established a worldwide presence through our acquisition of Nuuvera. We continue to hold a strong cash position that will give us the flexibility to pursue attractive investment opportunities both domestically and around the world.”
Nr. Neufield went on to say, “Looking ahead, our focus remains on exploring strategic opportunities and partnerships globally while continuing our extensive preparations for the coming legalization of the adult-use market in Canada. Backed by expertly-researched consumer insights, we will begin to introduce our diverse portfolio of adult-use brands, while continuing to support our extensive product mix and patient base on the medical side. Our Part IV expansion at Aphria One is on schedule for completion in early 2019 along with our Aphria Diamond facility, ensuring we will have ample capacity to meet the expected demand in Canada and across our international markets. All told, Aphria continues to solidify its standing as a market leader in Canada and as a leading player on the international stage.”
Also included in the release were updates on the status of the company’s three main expansion projects:
- Aphria One – 700,000 square foot Part IV expansion project remains on-time, first sale continues to be expected in January 2019;
- Aphria Diamond – 1,300,000 square foot retrofit project remains on-time, first sale continues to be expected in January 2019; and,
- Broken Coast – Phase III expansion complete and awaiting Health Canada. Phase IV expansion project modified to increase capacity but moves first sale expectations to Fall 2019
(Source: Canada Newswire)
Among the many Canadian cannabis plays we’ve routinely tracked, Aphria has always been one of the most aggressive in terms of its efforts to grow its business. Not only has the company recently demonstrated continued revenue growth, but it has lowered its costs to sub-$1.00(CAD) per gram of cannabis production. The APHQF chart has also begun to rebound off of recent lows, a phenomenon which may repeat itself multiple times over in the days and weeks ahead. 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.