Aphria Inc (OTCMKTS:APHQF) Takes Aggressive Bearing on Albertan Market

Aphria Inc (OTCMKTS:APHQF) Takes Aggressive Bearing on Albertan Market


With growing attention set to be cast upon the core group of key players in the cannabis patch heading into Canadian full legalization this fall, Aphria Inc (OTCMKTS:APHQF) is a natural focal point on that stage. To amplify that attention, the company just announced that it has signed a Supply Agreement with the Alberta Gaming, Liquor & Cannabis Commission to provide a portfolio of high-quality cannabis and cannabis-derivative products for sale in Alberta’s adult-use market.

“We are thrilled to be working with such a strong partner that is equally committed to promoting responsible cannabis use,” said Jakob Ripshtein, Chief Commercial Officer at Aphria. “This important agreement enables Aphria’s adult-use brands to have a strong presence in Alberta’s dynamic retail landscape. Through our partnership with the AGLC, we look forward to providing access to our thoughtfully crafted portfolio of brands that were designed to meet the diverse needs of Alberta consumers.”

Aphria Inc (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.

The company offers sativa, indica, and hybrid medical marijuana products, as well as cannabis oils. It also provides support services in the form of medical consultations, group therapies, and rehabilitation to veteran and first responders.

The company sells its products through its online store or phones, as well as engages in the wholesale shipping of medical marijuana plant cuttings and dried buds to other licensed producers. Aphria Inc. is headquartered in Leamington, Canada.

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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While the action for this name has been very much range bound over the past 8 weeks, the stock has seen interest climb, with an increase in recent trading volume of 28% beyond what we have been seeing over the larger time frame.

The company’s latest move to attack an expansionist agenda in Alberta is emblematic of the type of aggressive strategic path we have been seeing from Aphria for the past year.

“As we prepare for legal sales in October, this agreement represents yet another key milestone in our progress as we make Canadian history,” said Vic Neufeld, Chief Executive Officer at Aphria. “We are ready to meet the needs of Albertans as well as those across Canada with our annual production capacity that will reach 255,000 kg in early 2019. Additionally, we are prepared to service 100% of Alberta’s retailers from Day 1 through our recently announced partnership with Great North Distributors, in addition to supplying Alberta’s only legal online store for adult-use cannabis at www.albertacannabis.org.”

Now commanding a market cap of $1.87B, APHQF has a significant war chest ($119.4M) of cash on the books, which is balanced by about $8.6M in total current liabilities. One should also note that debt has been growing over recent quarters. APHQF is pulling in trailing 12-month revenues of $30.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 100.6%. As more color becomes clear on the name, we will review the situation and update our take. 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.

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