APHRIA INC COM NPV (OTCMKTS:APHQF) is one of the monster cash-rich Canadian cannabis play that we have been tracking for some time, and with a generally bullish view. The space is rife with competition these days, but this stock seems to have a strong track on maintaining a leadership position in what is sure to gradually evolve into a commodity production market. The company just announced that it completed its first shipment of cannabis oil to Australian medical life science company, Medlab Clinical Limited (ASX:MDC).
According to the release, “the shipment is part of the previously announced agreement between Aphria and Medlab, in which Aphria will produce and supply high-yield cannabis extracts for Medlab to be used in its forthcoming human trial to test management of intractable pain in oncology patients – the first trial of its kind globally. The product formulation and permits have been approved by Health Canada and the Australian Therapeutic Goods Administration.”
APHRIA INC COM NPV (OTCMKTS:APHQF) bills itself as a company that produces, supplies, and sells medical cannabis in Canada. Its cannabis products include dried flowers and cannabis oils. APHQF sells its products through its online store and telephone orders, as well as MMPR licensed producers.
According to press materials, “APHQF is one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. APHQF 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.”
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As noted above, the stock has been pulling back in recent days, but likely still represents one of the best of breed in the booming Canadian cannabis patch. The company recently announced the completion of a move to open up trade routes with Australia, sending its first shipment of cannabis oil to Australian medical life science company, Medlab Clinical Ltd.
“The first shipment of medical cannabis to Medlab is part of our global expansion strategy to take the Aphria story to other regulated countries like Australia and create additional revenue streams,” says Vic Neufeld, Chief Executive Officer of Aphria. “As Aphria’s first international partner, Medlab shares our vision to advance the use of medical cannabis as an alternative treatment for patients in need. We are proud to be a part of this important research, and we look forward to continuing to provide high-quality, safe and pure medical cannabis products to support Medlab’s clinical research and help patients effectively manage their pain.”
Sean Hall, CEO of Medlab said “This is an important step for Australian medical science as we prepare to begin our first clinical trial for advanced cancer pain patients to help them manage their pain with a cannabis-based medicine. We’re grateful for the support of health authorities in Australia and Canada for this trial which will provide scientific backing for the use of CBD and THC while giving the medical community confidence in its efficacy and safety.”
Apparently, as part of the supply agreement, Aphria will grow and prepare the high-yield cannabis for Medlab in Canada and Medlab will complete the manufacturing at a licensed Schedule 8 (S8) TGA approved facility, located in Melbourne, Australia.
The release notes that, at this facility, the cannabis product will be combined with Medlab’s patented medicine delivery system, NanoCelle, which enables sub-micron sized particles to be taken by mouth spray, allowing a swifter and more direct absorption of medicine into the bloodstream.
Our understanding is that the end result will be the production of a precise, potent cannabis medicine for the human trial.
Earning a current market cap value of $748.8M, APHQF has a significant war chest ($38.2M) of cash on the books, which is balanced by about $1.6M in total current liabilities. APHQF is pulling in trailing 12-month revenues of $22.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 39.9%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $APHQF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $APHQF, either long or short, and we have not been compensated for this article.