Investment and supply agreement enhances
Aphria's foothold into international markets
LEAMINGTON, ON and MELBOURNE, Australia, Jan. 15, 2018 /CNW/ - Aphria Inc.
("Aphria" or the "Company") (TSX: APH and US OTC: APHQF)
today announced that it has signed a supply agreement with
Australian-based Althea Company Pty Ltd. ("Althea") and
invested $2.5 million in Althea in
exchange for 25% shareholdings in the Company. The investment
increases Aphria's presence in the emerging Australian cannabis
market.
As part of the supply agreement, Aphria will provide Althea with
packaged co-branded cannabis oil and dried flower products for the
Australian medical cannabis market, further expanding Aphria
brand's footprint globally. Althea has already received import
permits from the Australian Government's Office of Drug Control
(ODC) and Aphria is expected to export the first shipment this
month, subject to regulatory approvals by Health Canada.
This is the second supply agreement Aphria has entered into with
the Australian market as the Company continues to expand its
international operations. In October
2017, Aphria announced that it had completed its first
shipment of cannabis oil to Australian medical life science
company, Medlab Clinical Limited.
"Australia's fledgling medical
cannabis market continues to present attractive growth
opportunities and is a key pillar of Aphria's international
expansion strategy," said Vic
Neufeld, CEO of Aphria. "We are excited to work with Althea
to realize the market potential and ensure that Australian patients
get access to high-quality medical cannabis."
"Althea is very pleased to partner with Aphria, a global leader
in cannabis production, to supply medicinal cannabis products to
the Australian market," said Josh
Fegan, Managing Director of Althea. "Australian patients
deserve immediate access to a wide range of quality medication and
this strategic investment and supply agreement enables Althea to
meet the growing patient demand for medical cannabis, whilst the
company establishes its domestic operation."
We Have a Good Thing Growing.
About Aphria
Aphria Inc., one of Canada's
lowest cost producers, produces, supplies and sells medical
cannabis. Located in Leamington,
Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight,
allowing for the most natural growing conditions available. Aphria
is committed to providing pharma-grade medical cannabis, superior
patient care while balancing patient economics and returns to
shareholders.
About Althea
Althea focuses on the supply of high-quality medicinal cannabis
for eligible patients across Australia. Althea prides itself on patient
care and will be the first cannabis company in the world to offer a
complimentary concierge service, providing a simple pathway for
healthcare professionals and patients to access medication. Upon
approval of its medicinal cannabis licence, Althea will commence
with the construction of a state-of-the-art greenhouse facility
located in Victoria.
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 volumes
under the agreement, expectations with respect to the performance
of Althea Company Pty Ltd., expectations for future growing
capacity and costs, the completion of any capital project or
expansions, expectations of receipt of Health Canada or the
Australian Government Office of Drug Control approvals 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 cannabis
industry in Canada and
Australia generally, income tax
and regulatory matters; the ability of Aphria and/or Althea 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.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
SOURCE Aphria Inc.