STRENGTHENS BALANCE SHEET IN SUPPORT OF LONG-TERM
GROWTH OBJECTIVES WITHOUT DILUTION TO SHAREHOLDERS
LEAMINGTON, ON, Dec. 2, 2019
/PRNewswire/ - Aphria Inc. ("Aphria" or the
"Company") (TSX: APHA and NYSE: APHA) announced that
its subsidiary Aphria Diamond secured a credit facility, on
November 29 2019, with a major
Canadian chartered bank (the "Bank") as sole arranger, sole
book runner and administrative agent on behalf of a group of
lenders for a committed senior secured credit facility of
$80 million (the "Credit
Facility").
"Aphria has the largest cash balance in the cannabis industry
without the dilution of a strategic partner," said Irwin D. Simon. "We are pleased to have secured
a term loan that will repatriate a portion of our investment in
Aphria Diamond, to be strategically deployed by Aphria. This loan
strengthens our balance sheet without being dilutive, and positions
Aphria Diamond for success as we expand into new categories and
growth opportunities in cannabis to enhance value for shareholders
long term."
Since securing its Health Canada license on November 1, 2019, Aphria Diamond is quickly
coming on scale. Aphria Diamond will be 70 per cent planted by
mid-week, with 350,000 young seedlings planted. With the level of
automation and scale of the facility, the Company anticipates
Aphria Diamond to have one of the lowest cost structures in the
industry. Aphria expects the dried flower production from the first
harvest to be sold to provincial control boards sometime in
March 2020.
The Credit Facility is secured by Aphria Diamond's assets and
Aphria's balance sheet. Pricing is based on a set margin over the
Bank's Canadian Prime Rate or Bankers' Acceptance and a pricing
grid linked to certain financial ratios. It is expected to be at
the outset in the low-to-high 5 per cent per annum range. The
Credit Facility has a three-year term and contains customary
financial and restrictive covenants.
About Aphria Inc.
Aphria Inc. is a leading global
cannabis company driven by an unrelenting commitment to our people,
the planet, product quality and innovation. Headquartered in
Leamington, Ontario – the
greenhouse capital of Canada –
Aphria Inc. has been setting the standard for the low-cost
production of high-quality cannabis at scale, grown in the most
natural conditions possible. Focusing on untapped opportunities and
backed by the latest technologies, Aphria Inc. 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 Inc. drives sustainable long-term
shareholder value through a diversified approach to innovation,
strategic partnerships and global expansion.
For more information, visit: aphriainc.com
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 may include, but
are not limited to, statements with respect to internal
expectations, expectations with respect to planting and production
volumes, expectations for future growing capacity, expectations
with respect to estimated margins, cost structures, and cost
structures in the cannabis industry, interest rates and the use of
proceeds from the Credit Facility. 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 cannabis;
inability to access sufficient capital from internal and external
sources, and/or inability to access sufficient capital on
favourable terms; the cannabis industry in Canada generally, income tax and regulatory
matters; the ability of Aphria Inc. 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
and should carefully review the various risks and uncertainties
identified in the Company's filings on SEDAR and EDGAR. 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.