One of Canada’s largest medical marijuana producers announced a stock-purchase deal to raise 100 million Canadian dollars ($77.7 million) in capital, which it intends to apply to the construction of new production facilities globally and in Canada.
To date in fiscal 2017, Aphria has raised CA$237 million, CFO Carl Merton told Marijuana Business Daily. This does not include the most recent deal, as it will close in 2018.
Leamington, Ontario-based Aphria also said in a news release it has given the underwriters involved in the transaction the option to purchase an additional CA$15 million worth of company stock, which would bring the total to $CA115 million.
Flush with money, Aphria said it is evaluating strategic acquisitions and investments.
The company – traded on the Toronto Stock Exchange under the symbol APH – has been stockpiling cash this year to fund rapid expansion ahead of adult-use legalization in Canada.
The company’s other recent raises include:
- Up to CA$92 million in October for the development of infrastructure and the expansion of its geographic footprint in Canada.
- Up to CA$111 million in April to expand Aphria’s production capacity.
- Up to CA$57 million in February, 80% of which was allocated to facility expansion and the rest toward strategic investments.
The underwriters in the latest deal agreed to purchase on a bought-deal basis 7.27 million Aphria shares for CA$13.75 apiece, giving the transaction a value of CA$100 million.
The offering is expected to close Jan. 9.