Aphria Inc. Enters Into Agreement to Receive $100 Million Strategic Investment from Institutional Investor

Published: January 27, 2020

Aphria Inc. Enters Into Agreement to Receive $100 Million Strategic Investment from Institutional Investor

Aphria Inc. has entered into an agreement to accept a strategic investment from an institutional investor (the “Significant Investor”), pursuant to which the Significant Investor has agreed to purchase 14,044,944 units of the Company at a price of C$7.12 per unit (the “Offering Price”) for aggregate gross proceeds to the Company of C$100,000,001 (the “Offering”).

Each unit is comprised of one common share of Aphria and one-half of one common share purchase warrant of Aphria. Each warrant will entitle the Significant Investor to acquire one common share at a price of $9.26 for a period of 24 months from the closing date of the Offering. The Company intends to use the net proceeds from the Offering to finance international expansion, working capital and general corporate purposes.

The units and the securities comprising the units are being offered pursuant to a shelf registration statement (including a prospectus) previously filed with and declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on November 26, 2019 and, in Canada, will be offered and sold in Ontario only by way of a prospectus supplement to be filed in each of the provinces and territories of Canada.

The Offering is expected to close on or about January 31, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange.

“Given the strength of our leadership team, the continued execution of our strategic plan and the robust opportunities we have for growth in the global cannabis industry, we were able to secure this additional capital from a single investor, a significant endorsement of Aphria in these market conditions,” commented Carl Merton, Chief Financial Officer. “We expect this strategic investment to strengthen our balance sheet and propel Aphria forward as we continue to differentiate ourselves in the industry.”

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