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.”
The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!
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).
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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