Aphria Inc. receives $100 Million investment
International expansion is one of the main objectives in the company’s road map
Aphria Inc. announced that it has entered into an agreement to accept a strategic investment from an institutional investor, pursuant to which the Significant Investor has agreed to purchase 14,044,944 units of the Company at a price of C$7.12 per unit for aggregate gross proceeds to the Company of C$100,000,001.
Each unit is comprised of one common share of Aphria and one-half of one common share purchase warrant of Aphria. Each warrant will entitle the Significant Investor to acquire one common share at a price of $9.26 for a period of 24 months from the closing date of the Offering.
The company, which now has the certifications needed to be a worldwide supplier of medicinal cannabis, intends to use the net proceeds from the offering to finance international expansion, working capital and general corporate purposes.
The units and the securities comprising the units are being offered pursuant to a shelf registration statement (including a prospectus) previously filed with and declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on November 26, 2019 and, in Canada, will be offered and sold in Ontario only by way of a prospectus supplement to be filed in each of the provinces and territories of Canada.
The Offering is expected to close on January 31, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange.
“Given the strength of our leadership team, the continued execution of our strategic plan and the robust opportunities we have for growth in the global cannabis industry, we were able to secure this additional capital from a single investor, a significant endorsement of Aphria in these market conditions,” commented Carl Merton, Chief Financial Officer. “We expect this strategic investment to strengthen our balance sheet and propel Aphria forward as we continue to differentiate ourselves in the industry.”
About Medical Cannabiz World:
In November 2019, Medical Cannabiz World opened its doors to the medicinal cannabis industry, supported by the Maltese government’s commitment to legislation for this high growth sector. Medical Cannabiz World summit 2020 will focus on the Malta medical cannabis industry as well as global opportunities in the sector, attracting investors, medical researchers, policy makers and entrepreneurs looking to forge exciting new opportunities.