LEAMINGTON, ONTARIO--(Marketwired - Aug. 17, 2016) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH)(OTCQB:APHQF) announced today that the Company received an amendment to its licence to produce and sell medical cannabis from Health Canada under the Marihuana for Medical Purposes Regulations. The licence amendment provides for the production and sale of cannabis oil extracts.
The Company originally received an amendment to its licence to produce cannabis oil in August 2015. In the interim, the Company has developed its processes and procedures to perfect the operation of its oil extraction technology and developed three oil extract formulations for sale to medical patients. Aphria's current oil extraction capacity is approximately 12,000 60 mL bottles a month. The Company recently received a second extraction machine and once on-line, it expects its extraction capacity will double.
The Company's oil extract bottle is 60 mL in size and contains the equivalent of 10 grams of dried marijuana sourced from bud. The Company intends to sell each bottle for $99 and will have three products available for sale: Champlain - a high THC product, Rideau - a high CBD product and Capilano - a balanced THC/CBD product. The purchase price on a per gram equivalency basis is $9.90. As of the date of this release, Aphria's pricing compares to an industry average of approximately $18 per gram equivalency.
"While our journey to obtain Health Canada approval was long, we are excited to begin selling our extracts on our website today," said Vic Neufeld, Chief Executive Officer. "Patient feedback suggests that demand will be strong, particularly given our attractive retail price. Capitalizing on our continued growing cost reductions, we believe significant margins will still be generated."
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 were 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, pricing, estimated margins, expectations for future growing and extraction capacity, product availability, 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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