Completes accretive transaction to repurchase its
convertible senior notes
Net cash position increases by $127.5
million ($91 million USD)
LEAMINGTON, ON, May 8, 2020 /CNW/ - Aphria Inc.
("Aphria" or the "Company") (TSX: APHA and NYSE:
APHA), a leading global cannabis company, today announced that it
entered into privately negotiated agreements with a limited number
of holders outside of Canada of
its convertible senior notes ("Notes") to repurchase an
aggregate of approximately $127.5
million ($90.8 million USD)
principal amount of Notes for approximately 18.7 million of common
shares and approximately $2.9 million
($2.1 million USD) in cash for
accrued and unpaid interest.
Effectively, the Company agreed to repurchase a portion of its
Notes at a 25% discount to their face value, using shares issued at
a 31% premium to Aphria's most recent closing market price (which
is equivalent to a conversion price of $4.84
USD per share).
The purpose of the transaction was to reduce the Company's debt
and eliminate $6.7 million
($4.8 million USD) in annual cash
interest costs.
This transaction strengthens the Company's balance sheet by
increasing its net cash position from $36.3 million CAD at its February 29, 2020 quarter-end to $163.8 million, on a pro-forma basis as at that
date.
This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offering would be unlawful. The exchanges are exempt
from registration under Section 4(a)(2) of the Securities Act of
1933, as amended, and upon an exemption from the prospectus
requirement afforded by OSC Rule 72-503 as promulgated under the
Securities Act (Ontario).
We Have A Good Thing Growing
About Aphria
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 and are expressly
qualified by this cautionary statement. 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.
Examples of forward-looking statements in this news release
include, but are not limited to, statements with respect to the
transaction being accretive to the Company's income statement,
producing annual savings and resulting in a positive effect on the
Company's earnings per share. Various assumptions were used in
drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions, estimates and
perception of trends of management and its beliefs with respect to
future events, as at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. 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
favorable terms; the cannabis industry in Canada generally, income tax and regulatory
matters, including delays in the issuance of licenses, the sale and
distribution of vapes; the ability of Aphria to meet its liquidity
requirements to fund ongoing operations; the ability of Aphria to
implement its business strategies; competition; crop failure;
safety of derivative cannabis products; currency and interest rate
fluctuations.
Readers are cautioned that the foregoing list is not exhaustive
and should consider as other factors discussed under the heading
"Risk Factors" in Aphria's most recent Annual Information Form and
under the heading "Industry Trends and Risks" in Aphria's
Management's Discussion and Analysis for the three and nine months
ended February 29, 2020, each
available on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov. 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.
Neither TSX nor its Regulation Services Provider (as that term is
defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
The schedule below is an excerpt of Aphria Inc.'s financial
statements prepared on a basis consistent with IFRS for the three
and nine months ended on February 29,
2020 and filed on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov. This schedule does not contain all the information
in Aphria Inc.'s financial statements that is important to you. You
should read the financial statements and Management's Discussion
and Analysis carefully to obtain a comprehensive understanding of
Aphria Inc.'s financial statements and notes thereto under IFRS and
related information.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aphria-strengthens-balance-sheet-with-negotiated-debt-reduction-301055791.html
SOURCE Aphria Inc.