Aphria Inc. (TSX:APHA) (NYSE: APHA) announced Friday it has agreed to receive a strategic investment from an institutional investor. Under the agreement, the investor will buy 14.04 million Aphria’s units with a price of CA$7.12 ($5.42) per unit for a total of CA$100 million in gross proceeds.
Each unit consists of one Aphria’s common share and one-half of one common share purchase warrant of Aphria. Each warrant enables the investor to purchase one common share at a price of $9.26 in the two-year period following the closing date of the offering, which is expected to happen on or around Jan. 31.
Aphria said it plans to utilize the net proceeds to support international expansion and for general corporate purposes.
"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," Carl Merton, Chief Financial Officer said in a statement. "We expect this strategic investment to strengthen our balance sheet and propel Aphria forward as we continue to differentiate ourselves in the industry."
Aphria’s stock traded 4.5% lower at $5.50 per share on Friday.
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