APHRIA INC COM NPV (OTCMKTS:APHQF) took a huge step toward furthering its plans for expansion in April, announcing major combined debt and equity fundraising measures.
At the end of last week, the stock itself had tapered back to bounce off of a low of 4.30, and appears to be gearing up for an upswing. We’ll want to keep a close eye on this play, which is one that we’ve already seen big moves from in the past. Between December and early April it ran from the $3-range to the $6-range.
The financing deals that were unveiled by APHRIA INC COM NPV (OTCMKTS:APHQF) which is a Health Canada Licensed Producer of medical cannabis products, totaled a $100 million raise, including a $75 million bought deal equity financing and $25 million in debt financing through a five-year term loan. This is the first time Aphria has raised both debt and equity simultaneously.
The Company expects that 50% of the net proceeds of the Offering will be allocated towards the currently unfunded portion of Part IV Expansion, with the balance being allocated between the working capital necessary to support the Company once the Part IV expansion is complete and strategic investments.
“Through this raise, we are not only looking at the needs of today, but what Aphria is going to need to do in the years ahead to dominate the market. When completed in 2018, our four-part expansion plan is expected to supply more than 75,000 kg of high-quality cannabis at one of the lowest costs in the industry. We are well positioned to continue to provide shareholder value and meet the increasing consumer demand for medical and recreational marijuana,” ,” said Vic Neufeld, Chief Executive Officer.