Aphria and Securecom Mobile have announced the successful first step of their previously announced US expansion strategy. Aphria, through a strategic investment into DFMMJ Investment, a special purpose private company, entered into an exclusive Management Agreement with Chestnut Hill Tree Farm. DFMMJ intends to continue to target, for expansion, key US states that have approved medical use of marijuana and meets its stringent investment criteria.
Chestnut is a Florida nursery authorized by the Florida Department of Health, Office of Compassionate Use, as a dispensing organization of medical cannabis to patients in need in the State of Florida. Chestnut holds one of seven licenses granted in Florida, which currently represents approximately 14% of the US medical cannabis market.
The Management Agreement, which was approved by the Department, authorizes DFMMJ to exclusively manage and operate Chestnut’s cultivation, processing, and dispensing of medical cannabis to patients within the State of Florida, as well as provides DFMMJ with the exclusive benefits of the finances from Chestnut’s operation. In conformance with the Management Agreement, DFMMJ will acquire certain assets related to the business operations. It is anticipated that after new regulations are introduced in Florida, Chestnut will, in strict adherence with the regulations and after appropriate regulatory approval, transfer the license to DFMMJ.
“This is an exciting moment for DFMMJ and Aphria,” said Mr. Neufeld, Chief Executive Officer of Aphria. “Chestnut is one of a select few licensed producers serving a state with a population over 21 million people. For DFMMJ and eventually Liberty, this is an entry into an attractive market. Liberty will have the opportunity to leverage Aphria’s pharmaceutical and agricultural expertise. Aphria’s intellectual property and low cost production methodologies will further drive Liberty’s growth. Ensuring Floridians are provided with accessibly priced, high-quality, safe and pure medical cannabis products. It is only the beginning for our plans to be a dominant player in the medical cannabis industry internationally.”
“Liberty also recognizes that its growth will be driven by its people, the communities in which it operates, and the patients it serves. In addition to being a driver of economic growth and job creation in Florida, we are committed to maintaining Chestnut’s proud history of being a strong, positive contributor in the community.”
Over the next six months, DFMMJ plans to significantly increase the size of Chestnut’s operations while introducing processing automation and other operational improvements. These improvements will largely stem from the greenhouse growing intellectual property that Aphria has licensed to DFMMJ in exchange for additional common shares in DFMMJ. Furthermore, DFMMJ will establish a network of dispensaries within Florida state, which will leverage the retail expertise of Liberty’s Board.
For more information:
Aphria Inc.
Vic Neufeld
President & CEO
1-844-427-4742
aphria.com
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