Comprehensive M&A data with integrated detailed company information
Aphria announces cash call
Posted on Friday, 21 April 2017 10:00
Canadian medicinal marijuana growing services company Aphria has planned a public offering valued at CAD 75.00 million (USD 55.63 million) in order to finance the firm’s expansion and general corporate purposes.
The business is issuing 11.54 million stocks, representing an 8.7 per cent stake in the group’s enlarged capital, at CAD 6.50 apiece.
Clarus Securities, acting as an underwriter to the offering, has been granted an overallotment option to acquire an additional 1.73 million shares for a 30-day period after closing.
The stocks will be placed through a short form prospectus to be filed in each of the provinces of Canada, with the exception of Quebec.
Completion is expected by 9th May 2017, subject to the approval of the Toronto Stock Exchange.
Earlier this year it was reported that Aphria, which is valued at around CAD 735.66 million, based on its close on the last trading day prior to the statement, could be a takeover target, according to analyst speculation.
The Ontario-headquartered firm claims to be one of Canada’s lowest cost producers of medical cannabis.
Aphria, which was formerly known as Black Sparrow Capital, was incorporated in 2013 and is a licensed producer under the Health Canada Regulations.
Its shares closed down slightly to CAD 6.69 yesterday, valuing the agency at roughly CAD 834.01 million.
In the six months ended 30th November 2016, Aphria posted revenue of CAD 9.60 million, a significant increase on CAD 2.98 million in the corresponding timeframe of 2015.
Net income for the first half of fiscal 2017 totalled CAD 1.84 million, compared to a loss of CAD 907,923 in H1 2016.
Earlier this month, Aphria bought 120.19 million new shares worth CAD 25.00 million from British Columbia-based chestnut farming services holding company DFMMJ Investments.
Aphria also acquired Canadian medical support group CannWay Pharmaceuticals for CAD 4.28 million in early 2016.
© Zephus Ltd