We say this often enough, but APHRIA INC COM NPV (OTCMKTS:APHQF) is without question among our favorite Canadian cannabis plays. With nationwide legalization just a hair’s breath away for our neighbor to the north, we’re becoming even more focused upon such stocks than usual.
Which is really saying something, when you consider the fact that there is no market sector that we have discussed more here on Street Register since our inception. Aphria is one company that we like to keep very close tabs on, and once again this week it has rolled out another key update.
APHRIA INC COM NPV (OTCMKTS:APHQF) has entered into a series of agreements resulting in Aphria forming a joint venture, CannInvest Africa Ltd., with South African company Verve Group of Companies (VGC). As part of this transaction CannInvest will acquire an interest in Verve Dynamics Inc., a licensed producer of medical cannabis extracts in Lesotho. The Transaction is valued at C$4.05 million.
“We are very excited to bring this deal, which was inherited through our acquisition of Nuuvera, to a very successful close,” said Vic Neufeld, CEO of Aphria. “Given the abundant natural resources and our collective expertise and that of our partners, Verve is poised to become one of the lowest-cost producers of medical cannabis extracts in the world. This represents another significant pillar in our strategic international expansion, where our presence extends to more than 10 countries across five continents.”
Verve will supply high-grade low-cost cannabis isolates to the African continent and, through Aphria International’s distribution network, to markets across the globe.
Through a combination of a share-for-share swap and cash payment of C$4.05 million, Aphria will have a 50% ownership in CannInvest which in turn will acquire VGC’s existing 60% ownership interest in Verve. As a result of the transaction, Aphria anticipates consolidating the financial results of Verve in its financial statements going forward.
Verve is located in The Kingdom of Lesotho, the first African country to introduce licenses for the cultivation, extraction, sale and exportation of cannabis for medical use. CannInvest’s partner in Verve is the Matekane Group of Companies (Pty) Ltd. (MGC) founded by Sam Matekane a prominent and well-respected Basotho businessman. MGC is an award-winning company involved in a multitude of industries including construction, mining, farming, hospitality, property management, and aviation.
Verve received its drug operator cannabis license in March 2017, and construction of greenhouses and facilities are currently being completed. By virtue of the favourable climate and other regional factors, Verve anticipates being a worldwide leader in the processing of low-cost medical cannabis extracts. Verve is in the process of commissioning its proprietary high-volume extraction equipment and is pursuing EU-compliant GMP certification, which it expects to receive in the latter half of 2018. (Source: Canada Newswire)
Aphria’s committment to growth from within the Canadian cannabis industry, and via expansion into international markets makes it an absolutely hot item. Few companies proceed with the deliberate intent and singular focus upon moving forward than does Aphria. That’s what makes it among our favorite players in the space.
.We’ll be sure to continue looking out for key events. 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 small cap 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.