Aphria Inc. (TSX:APH) has acquired LATAM Holding from Scythian Biosciences Corp. (CSE:SCYB) for stock and assumption of debt
SmallCapPower | October 2, 2018: Aphria Inc. (TSX:APH) announced on September 27, 2018, that it has closed its acquisition of LATAM Holding from Scythian Biosciences Corp. (CSE:SCYB). Aphria acquired all of the issued and outstanding common shares of LATAM Holdings by issuing 15.7 million Aphria shares at a price of $12.31, plus assumption of $1 million in existing debt. The closing was pursuant to the terms of the definitive share purchase agreement announced on July 17, 2018.
For Our Complete Coverage Of Canadian Marijuana Stocks Click Here
Watch: Cannex Capital Holdings (CSE:CNNX) Wants to Emerge as a Multi-State U.S. Cannabis Player, Says CEO
Aphria is consolidating operations in Latin America and the Caribbean regions through inorganic growth strategies – acquiring industry-leading cannabis companies in Colombia, Argentina and Jamaica as well as a right of first offer and refusal in respect of a majority interest in a Brazilian entity seeking a cannabis cultivation and sales license.
Aphria Chief Executive Officer Vic Neufeld said, “Aphria continues to execute on its plans for strategic international expansion, including in Latin America and the Caribbean. With a combined population of nearly 640 million, and with significant momentum from numerous countries introducing new or modernizing existing medical cannabis legislation, the region represents a significant opportunity for long-term growth. It also hosts some of the most favorable conditions for cultivating high-quality medical cannabis at substantial efficiencies – ideal for both regional supply and export opportunities. This acquisition firmly cements Aphria’s leadership in the region and on the global cannabis stage.”
As a result of the Agreement, the Company has acquired a 90% ownership interest in Colcanna S.A.S, the first company in the Coffee Zone of Colombia with cultivation and manufacturing licenses for the production of medicinal extracts of cannabis; a 100% ownership interest in ABP, S.A., an established and successful pharmaceutical import and distribution company in Argentina; a 49% ownership interest in Marigold Projects Jamaica Limited, which has received one of the only Tier 3 cultivation licenses in the country to cultivate and conditional licenses to process, sell, provide therapeutic or spa services using cannabis products.
Aphria trades at a market capitalization of C$4.2 billion with a price-to-book multiple of 3.25x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
