Connect with us

Business

Is Aphria Inc (OTCMKTS:APHQF) Next in Line for a Major Strategic Investor?

Published

on

Aphria Inc (OTCMKTS:APHQF) has a wild day, with the action working in its favor. Following the close, the company responded to a request from the Investment Industry Regulatory Organization of Canada (IIROC) regarding media reports suggesting the Company is engaged in discussions regarding a potential investment deal (where another investing entity would be taking a presumably significant stake in APHQF).

According to the release, “While Aphria engages in discussions with potential strategic partners and/or investors from time to time, the Company notes that there is no agreement, understanding or arrangement in place with a potential investor at this time.” As you may already be aware, this was a response to media reports that Altria (MO), the multi-billion dollar tobacco and consumer staples giant, may be interested in placing a strategic investment with APHQF. The market responded because the idea, as it appears at face value, is one that makes intuitive sense and seems quite plausible.

Aphria Inc (OTCMKTS:APHQF) commands a market cap of $3.56B as a leading global cannabis company driven by “an unrelenting commitment to our people, product quality and innovation.”

Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market.

The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. “Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.”

The company touts itself as one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. The company is truly powered by sunlight, allowing for the most natural growing conditions available. “We are committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. We are the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.”

 

It’s High Time

Shares of APHQF took off higher on Wednesday in response to the rumors of the Altria stake. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -4%. However, the action on Wednesday went a long ways to remedy that directional momentum, with a 14% jump. In addition, the stock has benefitted from a jump in recent trading volume to the tune of 91% over the long run average.

According to reports, Marlboro maker Altria Group Inc. is in talks with Canada-based cannabis producer Aphria Inc. to potentially acquire an equity stake in the company, The Globe and Mail reported Wednesday. The Globe article cited multiple anonymous sources and stated that Altria was interested in a minority stake in Aphria with the intention of acquiring a majority stake in the longer run, but the deal terms are not final.

In addition, Altria and Aphria’s leadership teams have apparently conducted several meetings, which is plenty of smoke for us to smell the fire, particularly, as noted above, because the deal would make so much sense.

Aphria Inc (OTCMKTS:APHQF) pulled in sales of $12M in its last reported quarterly financials, representing top line growth of 110.3%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($104.8M against $43.9M).

Trading Symbol

OTC: MJMD

The Next Big Global Cannabis Trade




FEATURED STORIES

Business7 hours ago

Is it Time to Move Back into Hexo Corp (OTCMKTS:HYYDF)?

Hexo Corp (OTCMKTS:HYYDF) is one of the most interesting names in the cannabis space. There are only a few plays...

Business1 day ago

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Should Be on the Radar

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) shares closed last week by dipping under the key 50-day simple moving average to finish...

Business1 day ago

Will Auxly Cannabis Group Inc (OTCMKTS:CBWTF) Start to Play Catch-up?

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) is an interesting play. The company has a massive stockpile of cash but hasn’t been...

Business1 day ago

Expansion Continues for Aphria Inc (OTCMKTS:APHQF), With Strong Catalysts Likely Ahead

Aphria Inc (OTCMKTS:APHQF) remains one our favorites primarily because it likely has some interesting catalysts ahead. It’s plausible to imagine...

Business2 days ago

What’s the Story Behind the Launch in Puration Inc (OTCMKTS:PURA) Shares?

Puration Inc (OTCMKTS:PURA) shares have been racing higher over the past month, and none of the catalysts contained in company...

Business2 days ago

How Medmen Enterprises Inc (OTCMKTS:MMNFF) is Positioned to Win on US Reform

Medmen Enterprises Inc (OTCMKTS:MMNFF) represents perhaps the cannabis company most likely to benefit the most from an eventual shift toward...

Business2 days ago

Hemp Inc (OTCMKTS:HEMP) Forges on as US Hemp Laws Progress

Hemp Inc (OTCMKTS:HEMP) recently announced that it applauds California’s commitment to agriculture, industrial hemp specifically, with the passing of SB...

Business3 days ago

Is New Age Beverages Corp (NASDAQ:NBEV) Setting Up for Some Interest From Above?

New Age Beverages Corp (NASDAQ:NBEV) is, as we see it, a very logical possibility for some kind of strategic interest,...

Business3 days ago

Why Aurora Cannabis Inc (OTCMKTS:ACBFF) is Set to Benefit from the Narrow US Market

Aurora Cannabis Inc (OTCMKTS:ACBFF) continues to be the top dog in the cannabis space as we see it. Capacity will...

Business4 days ago

Will Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Evolve From Prey to Predator?

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has an extremely strong balance sheet at this point, with cash levels at $261.8M...

Create a future where the human body can repair, restore, and rejuvenate itself

 

Trading Symbol

OTC: MJMD

The Next Big Global Cannabis Play