Further Strengthening Aphria's Cash Balance Pro
Forma to Nearly $600
million1
Company Also Provides Corporate
Updates
LEAMINGTON, ON, Jan. 24, 2020 /PRNewswire/ - Aphria Inc.
("Aphria" or the "Company") (TSX: APHA and NYSE:
APHA) today announced that it has entered into an agreement to
accept a strategic investment from an institutional investor (the
"Significant 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 (the
"Offering Price") for aggregate gross proceeds to the
Company of C$100,000,001 (the
"Offering").
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 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 or about 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."
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which an offer,
solicitation or sale would be unlawful prior to registration and
qualification under the securities law of such jurisdiction.
Copies of the prospectus supplement and shelf registration
statement are available relating to a particular offering will be
available, under Aphria's profile on SEDAR at www.sedar.com and
EDGAR at www.sec.gov, respectively.
Corporate Updates
Product Availability
The Company is pleased to provide an update on product
availability. Patients are now able to purchase Aphria's THC Walker
strain in a portable vaporizer concentrate. Additionally,
Aphria's adult-use brands Solei and RIFF vapes have been received
by customers in all provinces where they are legally
permissible.
Good Manufacturing Practices
Earlier this week, the
Company announced receipt of two European Union Good Manufacturing
Practices ("EU GMP") certificates for its Aphria One
and ARA – Avanti Rx Analytics facilities. The certifications
provide the Company with the ability to be a worldwide supplier of
medicinal cannabis.
Subsequently, the Company's Jamaican subsidiary Marigold
Projects Jamaica Limited received a Good Manufacturing Practices
certificate from Jamaica's
Ministry of Health and Wellness for manufacturing of cannabis
extracts (active pharmaceutical ingredients), including CBD and THC
oils.
Plant Positivity
The Company's social purpose
platform, Plant Positivity, was embraced by Toronto commuters looking for a brief reprieve
from the gloomy winter weather. During the week of January 20, 2020 the public was invited to
experience the Plant Positivity Winter Garden at
Toronto's Union Station to explore
the benefits of plants. By all accounts, the 30-foot pop up winter
garden tunnel was success in creating a public dialogue around the
different ways in which plants can impact our well-being –
physically, emotionally and socially.
We Have a Good Thing Growing
About Aphria
Aphria Inc. is a leading global cannabis company driven by an
unrelenting commitment to our people, the planet, product quality
and innovation. Headquartered in Leamington, Ontario – the greenhouse capital
of Canada – Aphria Inc. has been
setting the standard for the low-cost production of high-quality
cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest
technologies, Aphria Inc. is committed to bringing breakthrough
innovation to the global cannabis market. The Company's portfolio
of brands is grounded in expertly-researched consumer insights
designed to meet the needs of every consumer segment. Rooted in our
founders' multi-generational expertise in commercial agriculture,
Aphria Inc. drives sustainable long-term shareholder value through
a diversified approach to innovation, strategic partnerships and
global expansion.
For more information, visit: aphriainc.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking
statements under applicable securities laws and are expressly
qualified by this cautionary statement. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "will," "should", "anticipate", "expect", "potential",
"believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include, but are not limited to, statements with respect to
Aphria's expected closing of the Offering, the planned use of the
proceeds from the Offering and the future outlook of Aphria.
Various assumptions were used in drawing the conclusions or making
the projections contained in the forward-looking statements
throughout this news release. Forward-looking statements are based
on the opinions, estimates and perception of trends of management
and its beliefs with respect to future events, as at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. Forward-looking statements necessarily
involve known and unknown risks, including, without limitation,
risks associated with general economic conditions; adverse industry
events; marketing costs; loss of markets; future legislative and
regulatory developments involving cannabis; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favorable terms; the
cannabis industry in Canada
generally, income tax and regulatory matters, including delays in
the issuance of licenses, the sale and distribution of vapes; the
ability of Aphria to meet its liquidity requirements to fund
ongoing operations; the ability of Aphria to implement its business
strategies; competition; crop failure; safety of derivative
cannabis products; currency and interest rate
fluctuations.
Readers are cautioned that the foregoing list is not exhaustive
and should consider as other factors discussed under the heading
"Risk Factors" in Aphria's most recent Annual Information Form and
under the heading "Industry Trends and Risks" in Aphria's
Management's Discussion and Analysis for the three months ended
November 30, 2019, each available on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Readers
are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
The forward-looking statements included in this news release are
made as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
Neither TSX nor its Regulation Services Provider (as that term is
defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
The schedule below is an excerpt of Aphria Inc.'s financial
statements prepared on a basis consistent with IFRS for the three
months ended on November 30, 2019 and
filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. This
schedule does not contain all the information in Aphria Inc.'s
financial statements that is important to you. You should read the
financial statements and Management's Discussion and Analysis
carefully to obtain a comprehensive understanding of Aphria Inc.'s
financial statements and notes thereto under IFRS and related
information.
______________________________
1 Cash and cash equivalent balance as disclosed in
November 30, 2019 condensed unaudited financial statements plus
receipt of more than $99 million of net proceeds as a result of
this Offering
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SOURCE Aphria Inc.