Aphria Inc. Acquires CannWay Pharmaceuticals Inc.
January 24, 2016
Significantly accretive to earnings
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Leamington, Ontario – January 14, 2016 – Aphria Inc. (“Aphria” or the “Company”) (TSX-V: APH) has acquired a 100 per cent interest in CannWay Pharmaceuticals Inc. (“Cannway”)—a medical support service created by veterans—as part of the Company’s on-going commitment to enhance and improve patient care (the “Transaction”). Pursuant to the Transaction, CannWay’s founders have become shareholders in Aphria on the terms described below.
Under the terms of the Transaction, Aphria has issued 3.6 million shares from treasury to the previous owners of CannWay, 1.8 million of which will be held in escrow until certain operational metrics are achieved. In the event the operational metrics are not achieved, the shares will be released from escrow to Aphria and cancelled. The Transaction provides an established patient-base for Aphria with potential for increased growth through direct distribution across Canada. As a result of the acquisition, and based on Aphria’s evaluation of Cannway’s historical performance and future growth prospects, Aphria projects that its EBITDA will be positively impacted by approximately $0.9 million in fiscal 2016 and approximately $3.6 million in fiscal 2017.
“Aphria is proud of Canada’s veterans and is committed to supporting those suffering from medical conditions as a direct result of their service to our country. The acquisition of CannWay enters Aphria into a unique partnership that will enable us to better understand veteran’s medical needs and provide appropriate treatment solutions for recovery,” said Vic Neufeld, CEO.
Aphria Inc., a company continued 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. Aphria’s common shares are listed on the TSX Venture Exchange under the ticker symbol “APH”. For more information, visit aphria.ca.
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