Aphria Inc fka APHA

[Hunchbackgeek]

APHRIA DOUBLES ITS GROW TO 100K SQ. FT....

"Honestly, I haven’t written much about Aphria (APH.V) for the last year, mostly because they haven’t been riding in the same clown car as many weed companies. They’re not big on the promo side, not loud on the PR side, not tangling with others or battling dispensaries, they just get their product out.

So much so that they’ve announced this week they’re more than doubling their grow space to 100k sq. ft, at a cost of $10 million. Some of that will go towards buying surrounding land from their existing landlord, which secures the grow for the foreseeable future.

The company makes no bones about this being directly attributable to the need to expand into an expected legalization of recreational marijuana in Canada nearing 2017.

Other companies will be looking to do this too, but few have the war chest needed to bang out a $10 million expansion today.

But the bigger news, for mine, is hidden away in the bottom of that news release, as it pertains to Aphria taking a 7.4% equity stake in Cannabis Royalties for $1.5 million.


Who is Cannabis Royalties? Former Head of Capital Markets at Dundee, Marc Lustig, is Cannabis Royalties. He’s been cooking this little goulash up since late 2015, making quiet moves on the private side to acquire a piece of solid outfits that genuinely work in concert together in the non-growing end of weed – including extraction, delivery systems and IP.

You know, what Pharmacan (MJN.V) should have been, before it became ‘GettingInYourWayAsYouTryToGrowCan‘.

Aphria’s investment is key to CanRoy’s plans, being as that company is looking to move quickly into extractions, while the aggregator will have much need for a good source of grown product.

I have hinted that an MMPR player was looking to take a stake in a new player that will be big, and this is it. The ‘big’ part of that story is yet to come, but it’s coming. Lustig isn’t messing about.

Neither is Aphria. Check out their recent financials and you see a story that has totally shifted gears into a place that all others should be mirroring. They’ve jacked up their quarterly reves from $2, to $2.6m, they’ve hit break-even, they brought in that fat financing for growth and acquisitions, they negotiated their piece of Cannabis Royalties, EBITDA was $400k, compared to a $600k loss in the quarter a year before".

http://www.equity.guru/2016/06/03/marijuana-update-golden-leaf-posts-financials-aphria-doubles-down/

Thanks Magnum7419, great find bud:)