Aphria (company): Difference between revisions
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In May 2018, Aphria reached a deal with [[Southern Wine & Spirits|Southern Glazer's Wine & Spirits]] for that company to distribute Aphria's recreational cannabis products in Canada.<ref>{{Cite news|url=https://www.bnnbloomberg.ca/aphria-strikes-deal-with-southern-glazer-s-on-cannabis-distribution-1.1079258|title=Aphria strikes deal with Southern Glazer's on cannabis distribution - Article - BNN|date=2018-05-17|work=BNN|access-date=2018-05-20}}</ref> In July 2018, Aphria announced it would acquire several South American cannabis companies for about $200 million in a deal with Scythian Biosciences, a closely related company sometimes described as an acquisition arm of Aphria.<ref name=":2">{{Cite news|url=https://business.financialpost.com/cannabis/aphria-announces-proposed-acquisitions-in-latin-america-jamaica-worth-roughly-200-million|title=Aphria announces proposed acquisitions in Latin America, Jamaica worth around $200 million|date=2018-07-17|work=Financial Post|access-date=2018-08-17|language=en-US}}</ref> |
In May 2018, Aphria reached a deal with [[Southern Wine & Spirits|Southern Glazer's Wine & Spirits]] for that company to distribute Aphria's recreational cannabis products in Canada.<ref>{{Cite news|url=https://www.bnnbloomberg.ca/aphria-strikes-deal-with-southern-glazer-s-on-cannabis-distribution-1.1079258|title=Aphria strikes deal with Southern Glazer's on cannabis distribution - Article - BNN|date=2018-05-17|work=BNN|access-date=2018-05-20}}</ref> In July 2018, Aphria announced it would acquire several South American cannabis companies for about $200 million in a deal with Scythian Biosciences, a closely related company sometimes described as an acquisition arm of Aphria.<ref name=":2">{{Cite news|url=https://business.financialpost.com/cannabis/aphria-announces-proposed-acquisitions-in-latin-america-jamaica-worth-roughly-200-million|title=Aphria announces proposed acquisitions in Latin America, Jamaica worth around $200 million|date=2018-07-17|work=Financial Post|access-date=2018-08-17|language=en-US}}</ref> |
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In December 2018, [[short-seller]] Gabriel Grego of Quintessential Capital Management alleged that $700 million of Aphria's foreign acquisitions were "worthless", and only executed as a method to enrich company insiders. The company denied the allegations, which caused its share price to fall by 30%.<ref>{{Cite news|url=https://www.cbc.ca/news/business/aphria-stock-short-seller-1.4929951|title=Cannabis producer Aphria drops 30% after short seller calls acquisitions 'worthless'|last=|first=|date=2018-12-03|work=CBC|access-date=}}</ref> Partly as a result of the lower share price, Green Growth Brands, an American cannabis retailer, launched a C$2.8 billion takeover bid for Aphria, which it rejected as inadequate.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2018-12-28/pot-producer-aphria-spurns-2-1-billion-hostile-green-growth-bid|title=Pot Producer Aphria Rejects $2.1 Billion Green Growth Hostile Bid|last=|first=|date=2018-12-28|work=Bloomberg|access-date=}}</ref> |
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== Operations == |
== Operations == |
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Revision as of 14:23, 29 December 2018
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| Company type | Public |
|---|---|
| TSX: APHA NYSE: APHA S&P/TSX Composite Component | |
| Industry | Cannabis |
| Founded | 2014 |
| Founders | Cole Cacciavillani John Cervini |
| Headquarters | , Canada |
Key people | Vic Neufeld (Chief executive officer) Jakob Ripshtein (Chief Commercial Officer) Cole Cacciavillani |
| Products | Cannabis |
| Revenue |  C$ 36.92 million[1] (2018) |
| C$ -5.99 million[1] (2018) | |
| C$ 29.45 million (2018) | |
| Total assets | C$ 1.314 billion[1] (2018) |
| Total equity | C$ 1.164 billion[1] (2018) |
| Website | https://aphria.com/ |
Aphria, Inc is a Canadian cannabis company. It is listed on the Toronto Stock Exchange and the New York Stock Exchange, and has a market capitalization of $3 billion (as of January 2018), making it one of the largest cannabis companies in the world.[2] Aphria means agreeable in Celtic.[3]
History
Aphria was founded in 2014 by Cole Cacciavillani and John Cervini, who were Leamington greenhouse operators.[4] Its CEO, Vic Neufeld, was formerly the CEO of Jamieson Laboratories, a Canadian vitamin company.[3] It was originally listed on the Toronto Venture Exchange. It graduated from the Toronto Venture Exchange to the Toronto Stock Exchange in March 2017,[5] and joined the S&P/TSX Composite Index in December 2017. In 2014, Aphria was granted a license to produce and sell medical cannabis by Health Canada.[4] Its first wholesale shipments were in April 2015. Also in April 2015, it announced it would double the size of its greenhouse.[6] In 2016, it announced a partnership with Tokyo Smoke, a Toronto lifestyle brand.[7] In April 2017, Aphria announced a US expansion strategy. As a result, there was some concern that Aphria might be delisted from the Toronto Stock Exchange or face other sanctions, because of the uncertain legal status of cannabis in the US.[8] In December 2017, Aphria announced that Shoppers Drug Mart, a Canadian pharmacy, would sell its production online.[9]
In January 2018, Aphria agreed to take over Broken Coast Cannabis, a Vancouver Island cannabis producer, for $230 million in cash and stock.[10] Also in January 2018, Aphria agreed to purchase Nuuvera, a Brampton-based cannabis company, for $826 million.[11] Nuuvera was acquired in part due to its market position internationally, especially in Germany and Italy. When the deal closed in March 2018, it was valued at only $425 million, due to the lower value of Aphria's stock and the reduction of the cash offer of the deal.[12] There was some controversy due to the undisclosed ownership stake of several Aphria insiders in Nuuvera, which they did not disclose.[13]
In May 2018, Aphria reached a deal with Southern Glazer's Wine & Spirits for that company to distribute Aphria's recreational cannabis products in Canada.[14] In July 2018, Aphria announced it would acquire several South American cannabis companies for about $200 million in a deal with Scythian Biosciences, a closely related company sometimes described as an acquisition arm of Aphria.[15]
In December 2018, short-seller Gabriel Grego of Quintessential Capital Management alleged that $700 million of Aphria's foreign acquisitions were "worthless", and only executed as a method to enrich company insiders. The company denied the allegations, which caused its share price to fall by 30%.[16] Partly as a result of the lower share price, Green Growth Brands, an American cannabis retailer, launched a C$2.8 billion takeover bid for Aphria, which it rejected as inadequate.[17]
Operations
Aphria runs a greenhouse to produce cannabis in Leamington, Ontario, called Aphria One. As of August 2018, Aphria One was responsible for 90% of Aphria's production, and had 300,000 square feet of production space.[18] The company is also building another greenhouse in the Leamington area, Aphria Diamond, in partnership with Double Diamond, a greenhouse operator.[19] It is backed in part by the Delavaco Group, a private equity firm.[15]
See also
References
- ^ a b c d "Aphria Inc". TMX Money. QuoteMedia.
- ^ "Change in U.S. marijuana policy casts uncertainty over Canadian industry". The Globe and Mail. Retrieved 2018-01-11.
{{cite news}}: Cite has empty unknown parameter:|dead-url=(help) - ^ a b "From vitamins to pot: A CEO's new growth plan". The Globe and Mail. 2014-06-03. Retrieved 2018-01-11.
{{cite news}}: Cite has empty unknown parameter:|dead-url=(help) - ^ a b "The new cash crop". Windsor Star. 2014-12-21. Retrieved 2018-01-11.
- ^ "Leamington medical pot producer Aphria hits TSX". CBC News. Retrieved 2018-01-11.
- ^ "Aphria Medical Marijuana to double its Leamington operation". CBC News. 2015-04-02. Retrieved 2018-01-11.
{{cite news}}: Cite has empty unknown parameter:|dead-url=(help) - ^ Pin, Louis (2016-10-21). "Entrepreneur wants to bring elegance to pot". Chatham Daily News. Retrieved 2018-01-11.
{{cite web}}: Cite has empty unknown parameter:|dead-url=(help) - ^ Ligaya, Armina (2018-01-10). "Pot company Aphria stands by U.S. investment, despite Trump admin. crackdown, delisting threat". The Toronto Star. ISSN 0319-0781. Retrieved 2018-01-11.
- ^ "Pot Grower Aphria Surges After Its Online Pharmacy Sales Pact". Bloomberg.com. 2017-12-04. Retrieved 2018-01-11.
- ^ "Aphria buying Broken Coast Cannabis for $230M in stock and cash | CBC News". CBC. Retrieved 2018-05-09.
- ^ "Aphria Buys Nuuvera for $670 Million as Pot Deals Heat Up". Bloomberg.com. 2018-01-29. Retrieved 2018-01-30.
- ^ "Aphria closes $425-million Nuuvera deal as international strategy takes shape". Financial Post. 2018-03-23. Retrieved 2018-04-16.
- ^ "Aphria, Nuuvera deal prompts questions about disclosure rule gap". The Globe and Mail. 2018-03-27. Retrieved 2018-04-16.
{{cite news}}: Cite has empty unknown parameter:|dead-url=(help) - ^ "Aphria strikes deal with Southern Glazer's on cannabis distribution - Article - BNN". BNN. 2018-05-17. Retrieved 2018-05-20.
- ^ a b "Aphria announces proposed acquisitions in Latin America, Jamaica worth around $200 million". Financial Post. 2018-07-17. Retrieved 2018-08-17.
- ^ "Cannabis producer Aphria drops 30% after short seller calls acquisitions 'worthless'". CBC. 2018-12-03.
- ^ "Pot Producer Aphria Rejects $2.1 Billion Green Growth Hostile Bid". Bloomberg. 2018-12-28.
- ^ "Aphria 2018 Annual Report" (PDF).
{{cite web}}: Cite has empty unknown parameter:|dead-url=(help) - ^ "Local pot producer Aphria announces greenhouse expansion". Windsor Star. 2018-01-30. Retrieved 2018-12-01.