We noted last week that looked as if Aphria Inc (OTCMKTS:APHQF) shares had gotten their mojo back. That seems to have been prescient as shares have since bolted above their major moving averages on a fresh surge in volume. The action has been helped along by the company’s recent announcement that it has entered into a supply agreement with the Nova Scotia Liquor Corporation to provide a range of high-quality branded cannabis and cannabis derivative products for sale in Nova Scotia’s adult-use market starting on October 17, 2018.
“Today the NLSC has ensured that Nova Scotia’s adult-use consumers will have access to our thoughtfully developed brands and products come October 17,” said Jakob Ripshtein, Chief Commercial Officer at Aphria. “We are seeing tremendous momentum as provincial liquor boards and cannabis authorities across the country continue to respond favorably to our extensive range of product offerings. Each of our brands has been carefully developed to meet the needs and interest of distinct consumer segments, and we look forward to ensuring an ample supply is available to consumers in Nova Scotia and across the country.”
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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As noted above, APHQF shares have been back in momentum mode over the past week, bolting above key resistance on a new deal to take part in supplying the Nova Scotia adult-use market starting in October. In all, traders will note 29% tacked on to share pricing for the stock in the past week, but that move comes in the context of a larger bearish trend. Furthermore, the listing has seen interest climb, with an increase in recent trading volume of a bit over 290% over what the stock has registered over the longer term.
“When the opening bell rings, Aphria’s will be ready to hit the ground running and has the infrastructure, know-how, and capacity to deliver on all of our supply commitments,” said Vic Neufeld, Chief Executive Officer of Aphria. “We’re also continuing our laser-focus on developing the cannabis products, product categories and innovations of tomorrow, to ensure Aphria drives the evolution of the market not just this coming year, but in the many years to follow.”
At this time, carrying a capital value in the market of $2.62B, APHQF has a significant war chest ($59.7M) of cash on the books, which stands against about $2.8M in total current liabilities. APHQF is pulling in trailing 12-month revenues of $36.9M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 110.3%. 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.