Acquisition adds new vertical and strategic
operations in key region of global growth strategy
LEAMINGTON, ON, Nov. 8, 2018 /CNW/ - Aphria Inc. ("Aphria"
or the "Company") (TSX: APHA and NYSE:
APHA) today announced its proposed acquisition of CC Pharma
GmbH ("CC Pharma"), a leading distributor of pharmaceutical
products to more than 13,000 pharmacies in Germany. The transaction, when closed, will
strengthen the Company's end-to-end medical cannabis operations and
infrastructure in Germany, a key
market in Aphria's international expansion. It is anticipated that
the transaction will close in January
2019.
"This acquisition strengthens our foothold in Germany, one of the most highly sought-after
medical cannabis markets in the world," said Vic Neufeld, CEO of Aphria. "CC Pharma is
cash-flow positive and has significant experience with regulatory
requirements and international logistics. It will be a strong
addition to Aphria's presence in Germany, providing deeper access to the
important pharmacist channel and advancing our ambitious global
growth strategy."
Founded in 1999, CC Pharma is a leading importer and distributor
of EU-pharmaceuticals for the German market, with over €200 million
in annual revenue. Aphria, through its subsidiary Aphria
International, previously announced a supply agreement with CC
Pharma to export approximately 1,200 kilograms of medical cannabis
products from Canada to
Germany. With Aphria's experience
as a global cannabis leader, the Company will create a new division
of CC Pharma dedicated to medical cannabis. CC Pharma operates a
production, repackaging and labeling facility at its headquarters
in Densborn.
"We are pleased to join forces with a premier global cannabis
company, whose commitment to quality, safety and patient care
closely aligns with our own. This is an exciting opportunity to
build on our established network and advance our participation in a
rapidly growing, emerging industry," said Dr. Manfred Ziegler, Managing Director of CC
Pharma.
The transaction will bolster Aphria's growing presence in
Germany, which includes a
three-pronged approach covering demand, supply and distribution.
Earlier this year, the Company, through its wholly-owned subsidiary
Aphria Deutschland ("Aphria Germany"), acquired a 25.1 per cent
interest in Berlin-based
Schöneberg Hospital, providing access to both doctors and patients
to support education about the benefits of medical cannabinoids. It
was also the first step in Aphria Germany's plans to build and
operate pain treatment centres throughout Germany.
To secure a constant delivery of imported cannabis for German
patients, the Company is building one of the biggest
state-of-the-art GMP certified cannabis vaults in Bad Bramstedt,
northern Germany, with a storage
capacity of 5,000 kilograms. To prepare for in-country cultivation
in Germany, Aphria is planning on
building a Research and Development indoor growing facility in
Neumünster, Germany.
"We are focused on leading the way in the medical cannabis
market in Germany," said
Hendrik Knopp, Managing Director of
Aphria Germany. "By combining Aphria's expertise with CC Pharma's
established local market presence, we are well positioned to
continue on that journey."
Aphria will pay €24.5 million in cash to CC Pharma at closing,
with an earn-out multiple on future EBITDA of up to another €23.5
million following closing, if certain performance milestones are
met.
We Have A Good Thing Growing
About Aphria
Aphria is 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.
For more information, visit: aphria.ca
###
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking
statements under applicable securities laws. Any statements that
are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend" or the negative of these terms and similar expressions.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to internal expectations,
estimated margins, expectations with respect to actual production
volumes, expectations for future growing capacity and costs, the
completion of any capital project or expansions, and expectations
with respect to future production costs. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse industry events; marketing costs; loss of markets; future
legislative and regulatory developments involving medical
marijuana; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on
favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory
matters; the ability of Aphria to implement its business
strategies; competition; crop failure; currency and interest rate
fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
The forward-looking statements included in this news release are
made as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
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SOURCE Aphria Inc.