Canadian
Cannabis Stock News: Aphria (TSX: $APH) (OTCQB: $APHQF) Raises $100 Million to
Fund Continued Expansion of Production Capacity and Other Strategic
Opportunities
LEAMINGTON, ONTARIO - April 20, 2017
(Investorideas.com Newswire) NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED STATES - Aphria Inc. ("Aphria"
or the "Company") (TSX:APH) (OTCQB:APHQF), a Health Canada Licensed
Producer of medical cannabis products, announced today that it has secured 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.
"This fund raising is a
testament to the confidence of the investment community in Aphria's success to
date and our vision for the future," said Vic Neufeld, Chief Executive
Officer, Aphria.
"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 Mr. Neufeld.
As part of the raise, Aphria entered
into an agreement with Clarus Securities Inc., on behalf of a syndicate of
underwriters (collectively, the "Underwriters"), pursuant to which
the Underwriters have agreed to purchase, on a "bought deal" basis,
11,538,480 Common Shares (the "Common Shares") of the Company at a
price of $6.50 per Common Share (the "Offering Price") for aggregate
gross proceeds to the Company of $75,000,120 (the "Offering").
The Company has agreed to grant the
Underwriters an over-allotment option to purchase up to an additional 1,730,772
Common Shares at the Offering Price, exercisable in whole or in part at any
time for a period ending 30 days from the closing of the Offering. In the event
the over-allotment option is exercised in full, the aggregate gross proceeds of
the Offering will be $86,250,138.
The Common Shares will be offered by
way of a short form prospectus to be filed in each of the provinces of Canada,
other than the Province of Quebec, and in those jurisdictions outside of Canada
and the United States which are agreed to by the Company and the Underwriters,
where the Common Shares can be issued on a private placement basis, exempt from
any prospectus, registration or other similar requirements. The deal is
expected to close on May 9, 2017 and is subject to certain conditions
including, but not limited to, the receipt of all necessary approvals,
including the approval of the TSX.
The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any U.S. state securities
laws, and may not be offered or sold in the United States without registration
under the U.S. Securities Act and all applicable state securities laws or
compliance with the requirements of an applicable exemption therefrom. This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy securities in the United States, nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
The remaining portion of the raise is
comprised of a 5-year, $25 million term loan with WFCU Credit Union
("WFCU") bearing interest at 3.95% and a 15-year amortization
("Debt Financing"). The facility will be entered into on May 9, 2017.
The term loan is secured by a first charge on the Company's real estate
holdings, a first position on a general security agreement, certain cash
security and an assignment of fire insurance to the lender.
About Aphria
Aphria Inc., one of Canada's lowest
cost producers, produces, supplies and sells medical cannabis. Located in
Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered
by sunlight, allowing for the most natural growing conditions available. We are
committed to providing pharma-grade medical cannabis, superior patient care
while balancing patient economics and returns to shareholders. We are the first
public licensed producer to report positive cash flow from operations and the
first to report positive earnings in consecutive quarters.
We Have a Good Thing Growing.
For more information, visit
www.aphria.com.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS: Certain information in this news release
constitutes forward-looking statements under applicable securities laws. 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",
"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 internal
expectations, estimated margins, completion of the Debt Financing, timing for
completion of final TSX approval, expectations for future growing capacity and
costs, the completion of any capital project or expansions, any commentary
related to the legalization of marijuana and the timing related thereto,
expectations of Health Canada approvals and expectations with respect to future
production costs. 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 medical marijuana;
inability to access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms; the medical
marijuana industry in Canada generally, income tax and regulatory matters; the
ability of Aphria to implement its business strategies; competition; crop failure;
currency and interest rate fluctuations and other risks.
Readers are cautioned that the
foregoing list is not exhaustive. 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.
Forward-looking statements contained
in this news release are expressly qualified by this cautionary statement.
Contact Information
Nina Godard
Edelman
416-455-6324
nina.godard@edelman.com
Edelman
416-455-6324
nina.godard@edelman.com
Mr. Vic Neufeld
President and CEO
1-844-427-4742
President and CEO
1-844-427-4742
Disclosure: Aphria Inc. (TSX:APH) (OTCQB:APHQF) is a featured company on the 420
Cannabis Investor Ideas of 2017 at www.420cannabisinvestorideas.com
Marijuana
/ Hemp Stocks
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