Aphria Strengthens US Investment Platform, Increases Position in Copperstate Farms Investors to 18.5%
Marketwired MarketwiredMarch 27, 2017
LEAMINGTON, ONTARIO--(Marketwired - Mar 27, 2017) - Aphria Inc. ("Aphria" or the "Company") (TSX:APH)(APHQF), through its subsidiary Aphria (Arizona) Inc., is pleased to announce that it made an additional investment of $3 million (USD) in Copperstate Farms Investors, LLC ("Investors"). The investment will assist Investors in advancing its capital expenditure program related to extractions, lighting and power generation. This investment increases Aphria's membership units in Investors from 10% to 18.5% of those issued.
Investors owns a 95% interest in Copperstate Farms, LLC ("Copperstate"), a licensed producer of medical cannabis in the State of Arizona. The remaining 5% interest in Copperstate is owned by Aphria, through its subsidiary Aphria (Arizona) Inc.
Copperstate owns approximately 1.7 million square feet of greenhouses in Snowflake, Arizona and plans to bring approximately 348,000 square feet, into medical cannabis production in the fall of this year. Copperstate has received a special use permit for cannabis production in its entire facility by the Town of Snowflake. The Arizona Department of Health Services previously approved Copperstate's initial operations located in 6,000 square feet and will need to approve the expanded cultivation prior to operating the expanded facility. Thereafter, the first harvest is currently expected in early summer with a full harvest on the expanded operation expected late in 2017. Copperstate estimates that its expanded operations are capable of annualized production of approximately 18,000 kgs. The current spot price for wholesale bud in the Arizona market is approximately $3,300 per kilogram. Copperstate has secured 90 different marijuana varieties for eventual offer to its customers. Several of the varieties are currently being tested to determine consumer demand and optimal growing metrics.
"Our expanded investment in Copperstate Farms Investors increases Aphria's exposure to the particularly attractive Arizona medical cannabis market," said Vic Neufeld, Chief Executive Officer, Aphria. "Our partnership with Investors combines Aphria's extensive agriculture and pharmaceutical experience with Copperstate Farms' strong operational expertise, all while strengthening Copperstate's ability to serve Arizona's approximately 115,000 medical marijuana patients. In all, we believe this important partnership has significant long-term growth potential for Aphria."
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