LEAMINGTON, ONTARIO--(Marketwired - July 4, 2016) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH)(OTCQB:APHQF) announced today that it has closed its previously announced transaction with Cacciavillani and F.M. Farms o/a CF Greenhouses ("CF"), a company having common ownership with one of Aphria's Co-Founders. Aphria acquired 360,000 square feet of production space, located on 36 acres of land for total consideration of $6.1 million. The $6.1 million purchase price was satisfied by a $3.25 million cash payment and the vendor assuming a vendor take back mortgage, in the amount of $2.85 million, with a 5-year amortization period and term and bearing interest at 6.75%.
"The closing of our real estate acquisition allows Aphria to aggressively move forward with our recently announced Part II expansion," said Vic Neufeld, Chief Executive Officer, "Owning our operating facilities provides Aphria significant capacity growth on the same campus address, thereby avoiding new licence applications or time-sensitive licence amendments caused by a separate site licence address. This transaction allows Aphria the flexibility to react on a more timely basis for future expansion plans based on industry evolution. With the speed of industry growth, Part III expansion is right around the corner."
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. We are committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. We are the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
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", "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 for future growing capacity, the completion of the land acquisition with CF Greenhouses, the completion of the capital project, any commentary related to the legalization of marijuana and the timing related thereto, expectations of Health Canada 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 marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria 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.
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