APHRIA INC COM NPV (OTCMKTS:APHQF)
APHRIA INC COM NPV (OTCMKTS:APHQF) on Tuesday announced it has closed an announced that it has closed on its previously announced five-year, $25 million term loan with WFCU Credit Union (“WFCU”) bearing interest at 3.95% and a 15-year amortization. At closing, Aphria drew the full $25 million. The facility was entered into on May 8, 2017. Aphria also announced an offering of its common shares on a “bought deal” basis. This means that the underwriters will be guaranteeing the amount of funds to be raised. A total of 13,269,252 APHQF shares were sold at a price of $6.50 per share. The gross proceeds total $86,250,138. The offering was underwritten by a syndicate of underwriters led by Clarus Securities Inc. and included Cormark Securities Inc., Canaccord Genuity Corp., and PI Financial Corp.
50% of the net proceeds from the offering will be allocated towards the currently unfunded portion of the planning, design, development, construction and implementation (including the purchase of certain designated capital equipment) of APHRIA INC COM NPV (OTCMKTS:APHQF) Part IV Expansion. 10% of the net proceeds from the offering will be allocated to the working capital necessary to support APHRIA INC COM NPV (OTCMKTS:APHQF) once Part IV expansion is complete and the remaining 40% will be allocated towards strategic investments. APHRIA INC COM NPV (OTCMKTS:APHQF) will hold the remainder of the net proceeds as cash balances to be invested at the discretion of the company’s Board of Directors.
APHRIA INC COM NPV (OTCMKTS:APHQF) is a Canadian-based Health Canada Licensed producer of medical cannabis products that exclusively grow their pesticide-free plants in greenhouses. APHRIA INC COM NPV (OTCMKTS:APHQF) offers over 18 cannabis related products and provides the THC and CBD level of each on their website. They also have a high-quality cannabis oil product that is extracted using CO2 extraction which they claim helps preserve the purity and safety profile.
APHRIA INC COM NPV (OTCMKTS:APHQF) is Canada’s first licensed medical cannabis producer to report positive cashflows and earnings in consecutive quarters. That claim helped them decide to previously raise over $100 million. Clarus Securities acted as the underwriter.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.