Aphria is undoubtedly behind its LATAM business
- Assets well positioned to create significant value for shareholders
- Management team demonstrates belief in companies through $ 3.1 million Acquisition of shares on December 3, 2018
LEAMINGTON, ON, Dec. 4, 2018 / PRNewswire / – Aphria Inc. (“Aphria” or “Company”) (TSX: APHA and NYSE: APHA) today provides the following update of its Latin American operations, including its previously completed LATAM acquisition of LATAM Holdings Inc. of licenses and other assets and related companies in Colombia, Argentina and Jamaica as well as the right to first offer and refusal concerning Brazil (jointly “Transaction”), which ended on September 27, 201
Then By completing this important strategic acquisition in September we have made significant progress in supporting and expanding our operations in the Latin American and Caribbean fields. We have almost 100 employees throughout the region that are intended to promote the business’s business interests, including cultivation, processing, research and development, partnership and continued expansion.
Vic Neufeld, Chief Executive Officer of Aphria
International operations are an important part of our proven growth strategy, and we work to integrate and improve business and product channels throughout Latin America to place them for sustainable long-term asset value development.
Background: LATAM Holdings Acquisition
Aphria is committed to good corporate governance and openness. The LATAM acquisition was a transaction negotiated in arms length between two listed traders, each of which retained professional financial advisors (including a formal valuation of the acquired assets). Aphria and SOL Global Investments Corp. (formerly Scythian Biosciences Corp.) (“SOL”) are not “sister” companies and were not “sister” companies at the time the transaction was agreed between the parties.
In conjunction with the transaction, the company notes, among other things, the following:
- Aphria’s Board of Directors has received financial advice and a fair opinion from Cormark Securities Inc., the company’s independent and qualified financial adviser, that consideration should be offered by Aphria regarding the transaction where fair, from a financial point of view to Aphria.
- The company considers that the purchase price paid during the transaction was comparable to similar acquisitions from Latin America by other major cap, Canadian licensed producers.
- The transaction resulted in a minimal dilution to shareholders in Aphria (6.6% base / 6.3% fully diluted).
- The company retained leading transaction councils in each jurisdiction which completed extensive legal due diligence on assets, licenses and companies in each jurisdiction.
- Representatives of Aphria traveled to Colombia, Argentina, Jamaica and Brazil to take careful care of the assets that were to be acquired, which included management meetings, visits to the site of senior executives in each country and meetings with local authorized representatives.
- The company entered into a negotiated share agreement with SOL in connection with the Transaction which contained extensive representations, warranties, covenants, terms and conditions that survived the closure of Transaction.
- In its press release announcing the transaction, the Company disclosed that certain insiders of Aphria had a de minimis amount of shares and subscription rights of SOL and that such insiders had given such interests to the Board and withdrawn from the deliberations under which the Transaction turned s and voting on the decision approving the transaction.
Since the transaction has been completed, the company has successfully integrated the activities of each jurisdiction and provides the following updates:
Colombia  Aphria owns a 90% interest in Colcanna SAS (“Colcanna”). Colcanna has got all the necessary licenses for cultivation, processing, export, research and commercialization.
- Colcanna is located on 34 acres of highly fertile, predominantly flat land, which is necessary for optimal cultivation of cannabis, including the greenhouse that sits on the area recently hired mother plants.
- The company has recently signed a promissory note for the purchase of the additional 8 hectares of land adjacent to existing property for expansion.
- Colcanna has permission to cultivate psychoactive and non-psychoactive cannabis. Colcanna licenses also allow for cultivation, export, research and processing.
- Colcanna also granted the Colombian Agricultural Institute on October 30, 2018 a characterization permit according to Resolution No. 35244 and No. 35245, which allows the company to assess seeds and initiate a pilot sample of its strains prior to full-scale cultivation.
- Greenhouses are planned for more than 20 hectares of the property with 6 crops expected per year.
- Colcanna is expected to achieve an initial annual output of 30,000 kg, growing up to 50,000 kg, suitable for delivering the country and region with high quality medical cannabis.
- There are 48 employees in Columbia engaged in the cultivation and promotion of business interests.
- Marigold is fully functional with:
- Issued Tier 3 License for Growing More Than 5 Acres of Cannabis for Medical, Scientific and Therapeutic Purpose
- An Issued Research and Development License
- A Conditional Tier 2 License for Cannabis Processing for Medical , scientific and therapeutic purposes, including cannabis based products, in a space of more than 200 square meters.
- A conditional herbal trade license for the sale of cannabis products for medical, scientific and therapeutic purposes, with immediate consumer consumption, including tourists and  A conditional therapeutic detail license to provide therapeutic or spa services using cannabis products.
- Marigold’s farm is active and has harvested approximately 2,500 kg of cannabis so far.
- The company has incorporated 10 hectares of land in Block B, Lot 2, part of Bernard Lodge, St. Catherine, from Sugar Company in Jamaica in anticipation of expanding its growing demand dictates .
- Two Herb House sites, the first in Kingston, namely Sensi Medical Cannabis House, and the other, Portmore, are expected to open. In January 2019, additional locations are planned for other high demand regions in Jamaica.
- Jamaica has 22 employees dedicated to the cultivation, processing and operation of the plant and maintenance of the company’s brand.
- Aphria’s subsidiary in Argentina, ABP, is an established and successful pharmaceutical import and distribution company.
- ABP is conducting research and clinical study of mood cannabis, including through partnership with Hospital de Pediatria Garrahan, one of the most recognized and credible medical institutions in South America.
- In October 2018, ABP delivered 1 500 bottles of Aphria’s famous Rideau CBD oil, which was provided to the Hospital de Pediatria Garrahan for use in a clinical study focused on the treatment of refractory epilepsy in children. The clinical study, which involves 100 patients and will be performed over 2.5 years, will be one of the world’s global scientific and medical studies focused on the treatment of refractory epilepsy in children.
- To undergo its ISO 9001 inspection on October 25, 2018, ABP engaged in a retrofitting of the building in October 2018.
- Aphria and ABP, in close cooperation with the Argentine government, continue to promote opportunities for medical cannabis in the country , including the possibility of domestic cultivation.
- APB operates a pharmaceutical distribution stock and retail pharmacy and distributes to a comprehensive network of pharmacies, distributors, state clinics and hospitals throughout Argentina.
- ABP also has agreements with Top 20 health insurance companies, a strategic advantage for reaching patients who have access to Argentina’s free public health system.
“Aphria has developed and launched a compliant brand, built a list of strategic partners and continues to focus on research, innovation and product development in Canada and internationally. Aphria has experienced enormous growth and will continue to lead industry development in the coming years. It is a commitment from our incredible teams and partners who have gotten to where we are today, making Aphria a global success story for cannabis, says Neufeld.
“Yesterday together with other senior executives teams, intensified to show our confidence in the company’s business plan, growth strategy, integrity and value of assets by investing more than $ 3.1 million in Aphria’s common shares, “concluded Neufeld.
We have a good thing growing
] About Aphria
Aphria is a leading global cannabis company driven by an everlasting meadow agement for our people, product quality and innovation. Aphria has its headquarters in Leamington, Ontario – Aphria Growth House – Aphria has established the standard for low cost production of safe, pure and pure pharmaceutical quality cannabis, grown under the most natural conditions. Aphria focuses on untapped opportunities and is supported by the latest technology, and intends to breakthrough innovation on the global cannabis market. The company’s brand portfolio is based on expert-researched consumer insights designed to meet the needs of each consumer segment. Aphria is the foundation of our generation’s expertise in commercial agriculture and maintains a sustainable long-term shareholder value through a diversified approach for innovation, strategic partnerships and global expansion, with presence in more than 10 countries on five continents.
For more information, visit: aphria.ca
Original Press Release
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