Aphria to Raise $80 MM for Expansion and Strategic Investments
This morning, Aphria Inc. (TSX:APH) (OTC:APHQF) announced that it has entered into an agreement with Clarus Securities Inc., on behalf of a syndicate of underwriters, in which the syndicate of underwriters have agreed to purchase, on a "bought deal" basis, 11,034,500 common shares of the company at a price of $7.25 CAD per share. Aggregate gross proceeds to Aphria will be $80,000,125 CAD, equivalent to approximately $63,808,099.70 USD based on current foreign exchange rates.
With a last trade price of $7.92 CAD per share of Aphria, this represents a $0.67 CAD per share or 9.24% underwriter spread.
Additionally, the company has agreed to grant the underwriters an over-allotment option to purchase up to an additional 1,655,175 common shares at the $7.25 CAD per share 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 $92,000,144 CAD.
Based on the release, we expect the offering to close on or about November 7, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Exchange.
Aphria intends to use the net proceeds from the offering for the development of infrastructure such as the purchase of capital and other equipment, as well as the expansion of its geographic footprint in Canada and other strategic investments, and for general working capital purposes.
This announcement comes on the heels of numerous capital raise efforts by other Canadian Licensed Producers such as Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) and more.
