Aphria Inc.

Aphria Inc.

December 02, 2014 08:30 ET

Aphria Receives License to Cultivate and Sell Medical Marijuana

TSX Venture Exchange trading to commence December 8, 2014

LEAMINGTON, ONTARIO--(Marketwired - Dec. 2, 2014) - Aphria Inc. is pleased to announce that it has received its license from Health Canada to cultivate and sell marijuana under the Marihuana for Medical Purposes Regulations ("MMPR").

"Following a rigorous process, we are very excited that Health Canada has designated Aphria as a licensed producer of medical marijuana," said Vic Neufeld, Chief Executive Officer of Aphria. "With license in hand, we can now begin the next exciting chapter of the Aphria story and become the premier pharmaceutical company for medical marijuana in Canada."

Neufeld added, "We are very supportive of Health Canada's continued refinement of the regulations governing medical marijuana. As with any new and emerging industry, the regulations require constant review to ensure enhanced product quality and safety. While this leads to a lengthier approval process, we believe it is critical in order to protect the patient user."

Prior to receiving its final license to distribute medical marijuana last week, Aphria was operating under a partial license at its facility in Leamington, which includes 22,000 square feet of production space across three state-of-the-art light and computer controlled glass greenhouses. Aphria's greenhouses are located within a larger 450,000 square foot greenhouse facility, allowing for future expansion. Aphria expects to be a low-cost producer of medical marijuana owing to various cost-saving attributes of its operations, including the advantages derived from growing medical marijuana in greenhouses.

Under the MMPR and the previous regulatory regime, Aphria has grown and harvested 12 crops of medical marijuana and has acquired and tested over 40 different strains in that time. With inventory built up and its license to sell in hand, Aphria anticipates being in a position to fill patient prescriptions commencing in mid-December.

Aphria is licensed to produce and sell 700 kilograms of medical marijuana between now and March 24, 2015. However, as its production capabilities expand and customer demand increases, Aphria intends to apply to Health Canada for an increase in that amount in a renewed license.

"The medical marijuana industry in Canada has grown steadily over the last few years and, according to Health Canada, is projected to grow exponentially over the next ten years from 40,000 to more than 400,000 patient users," stated Neufeld. "It will be a competitive marketplace. However, we believe we have a competitive edge with over 85 years of combined experience in agriculture and agribusiness, more than 40 years of combined experience in the pharmaceutical industry and a low cost advantage."

About Aphria

Aphria, incorporated under the laws of the Province of Ontario and based in Leamington, Ontario, is in the business of producing, supplying and selling medical marijuana pursuant to the Marihuana for Medical Purposes Regulations (the "MMPR"). Under the MMPR, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria.

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