Aphria raising $225 million for expansions, facilities, possible acquisitions

A Hydropothecary facility in Quebec. The company wants to catch up with the market capitalization of competitors such as Canopy Growth Corp., Aurora or Aphria Inc. (File image via The Canadian Press)
A Hydropothecary facility in Quebec. The company wants to catch up with the market capitalization of competitors such as Canopy Growth Corp., Aurora or Aphria Inc. (File image via The Canadian Press)

LEAMINGTON, Ont. — Aphria Inc. says it’s raising $225 million to pay for new and expanded cannabis facilities in Canada, as well as potential global expansion and acquisitions.

The Leamington, Ont.-based cannabis producer says some of the funds will go towards a new $55 million extraction facility that will use a variety of methods to produce concentrated cannabis products like oils.

The company says the modern facility, which will be able to process more than 200 tonnes of cannabis annually, will help it prepare for what’s expected to be a significant product category.

Aphria says it also plans to spend an additional $20 million at its Aphria Diamond facility to increase capacity by 20 tonnes annually and allow for alternative growing techniques, and $10 million to add 10 tonnes of capacity to its Aphria One operation.

The company says it will raise the money through the sale of 19 million shares at $11.85 each. The financing is being led by Clarus Securities Inc.

Aphria’s share price closed up 63 cents or 5.18 per cent at $12.79 after announcing the facilities expansions. The financing was announced after market close.

Companies in this story: (TSX:APH)

The Canadian Press

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