Aphria Inc.’s (TSX:APH) shipment to Medlab Clinical Limited of Australia consisted of high-CBD cannabis oil and high-THC cannabis oil
SmallCapPower | August 2, 2018: Aphria Inc. (TSX:APH) announced recently that it has completed its largest international shipment of cannabis oil to date to Medlab Clinical Limited of Australia. The shipment is part of the April 2017 supply agreement between Aphria and its first international partner Medlab and follows the first shipment completed in October 2017. In January 2018, Aphria signed a second supply deal with Althea Company Pty Ltd. to provide packaged co-branded cannabis oil and dried flower products and completed its first shipment in April.
The shipment consisted of high-CBD cannabis oil and high-THC cannabis oil, designed specifically for Medlab, for use in the human trials of Medlab’s cancer pain pipeline product, NanaBis™. Medlab will then combine these cannabis oils with its patented medicine delivery system, NanoCelle™. Medlab has received required approvals for the clinical trials from the Australian Therapeutic Goods Administration.
Vic Neufeld, CEO of Aphria, said “Aphria is proud to support Medlab’s important and vital clinical research on the use of medical cannabis as an alternative treatment for pain management. Medlab was our very first international partner, and as Aphria expands its operations around the globe, we will continue support the advancement of medical cannabis research through these valuable partnerships.”
In addition to establishing its strong presence in the emerging Australian market, Aphria has been aggressively pursuing its international strategy and recently (March 2018) established Aphria International, which will focus on expanding the Company’s footprint in regulated cannabis markets outside of Canada including Europe, Africa, the Middle East, as well as Australia. Last month, the Company further expanded its international footprint by announcing plans to expand into Latin America and the Caribbean with the planned acquisition of companies in Colombia, Argentina, and Jamaica, and a right of first offer and refusal in respect of Brazil via a definitive share purchase agreement with Scythian Biosciences Inc. Also, Aphria will acquire 100% of the issued and outstanding common shares of LATAM Holdings Inc. – a direct, wholly-owned subsidiary of Scythian. The Scythian acquisition provides Aphria medical brands exposure to more than 300 million people, roughly nine times the size of Canada.
Aphria is one of Canada’s lowest-cost cannabis producers and ranks among the top three marijuana producers in Canada. Aphria currently trades at a market cap of $2.5 billion on the TSX. In terms of valuation multiples, the Company trades at a P/E of 56x, price to TTM sales of 87x and price to book of 2.8x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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