Aphria postpones construction of Nuuvera greenhouse

Aphria will rename its recently-acquired subsidiary Nuuvera as Aphria International, remaining as a wholly-owned subsidiary of Aphria. Aphria International will focus its activities on established regulated cannabis markets around the world, including where Aphria International already has significant interests. These markets currently cover Europe, Africa and the Middle East, with assets and agreements in Germany, Italy, Spain, Portugal, Malta, Lesotho, and others. Aphria’s existing assets and interests in Australia will also be managed under Aphria International.

On March 23, 2018, Aphria and Nuuvera announced the successful completion of the arrangement, under which Aphria acquired, among other things, all of the common shares of Nuuvera not already owned by the company. The value of the deal at closing was $525M, including $35M of cash in Nuuvera at closing.

As a result of the acquisition, Nuuvera’s offtake agreements with Aphria, for a combined total of 77,000kg annually, are no longer in place. Aphria will now be able to enjoy the difference between the wholesale price the company would have sold to Nuuvera and the retail margin that Nuuvera was going to sell for in Canada and internationally.

Aphria has also decided to postpone the construction of Nuuvera’s previously-announced 1,000,000 square foot greenhouse on the property Nuuvera was buying from Aphria located at Mersea Road 8. Aphria intends to continually reassess its plans for this facility as domestic and international markets evolve.

For more information:
Aphria
T: 1-844-427-4742
F: 1-844-427-4796
info@aphria.com
aphria.com