Medical pot production at Aphria set to grow again
Leamington-based cannabis producer announces $100M in expansion funding
The hierarchy at Aphria Inc. had a busy week positioning the company for a significant expansion of its cannabis production in the wake of the federal government’s plan to legalize pot next year.
The Leamington-based producer of medical cannabis products announced Thursday it had secured $100 million to fund continued expansion and strategic investment.
That came on the heels of Wednesday’s joint announcement with Tetra Bio-Pharma Inc. to distribute dried medical cannabis in the Maritime provinces and Quebec.
Tetra and Aphria are also working toward developing a prescription drug that would be marketed in both the U.S. and Canada.
“It really goes back to our vision of Aphria of having one million square feet of greenhouse grow,” CEO Vic Neufeld said.
Aphria negotiated a $75-million equity financing deal with Clarus Securities Inc. with the sale of just over 11.5 million common shares at $6.50 per share.
The remaining $25 million was secured via a five-year loan from the Windsor Family Credit Union.
The company’s footprint occupies 52 acres, employing 120 people and producing 2,600 kilograms of pot a year.
With an eye toward legal recreational use, expansion plans call for producing 75,000 kilos a year and employing up to 400 people.
Recently tabled federal Liberal legislation will legalize pot for recreational use, sale and cultivation. It will allow those 18 years and older to possess up to 30 grams of dried or fresh cannabis.
“The government is going to need a supply line and that’s what we’re doing,” Neufeld said. “To be first in line, best in class you need to set your sights and commit to it.”
When the company completes Phase 1 of a four-part expansion plan this fall, they will have 300,000 square feet of greenhouse grow available.
Phase 4 plans are focused on the infrastructure needed to supply the recreational-use market. That phase will include the brick-andmortar elements, such as a kitchen and bakery for future edible products. “We don’t need it now,” Neufeld said. “This is to fund our vision and strategies.”
Aphria is currently the secondlargest medical cannabis grower in the country, but Neufeld believes when the dust settles on all of their expansion plans, they’ll own the top spot.