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Aphria Secures $80M In Financing For Aphria Diamond Growing Facility
December 3, 2019
Source: Yahoo Finance
Aphria Inc. (TSX: APHA) (NYSE: APHA) said Monday that its Aphria Diamond growing facility subsidiary obtained an $80-million credit facility Friday with a Canadian chartered bank that will serve as an arranger, book runner and administrative agent on behalf of lenders.
The credit facility is backed by Aphria Diamond’s assets and the company’s balance sheet and has a three-year term.
Aphria Diamond secured a Health Canada license Nov. 1, and since then the subsidiary has been "coming on scale," according to the company.
The Leamington, Ontario facility will be 70% planted this week, with 350,000 seedlings, Aphria said.
Aphria Diamond is set to hve among the most affordable cost structures in the industry, and the subsidiary's first dried flower products are expected to be ready for distribution in March, according to the cannabis company.
“Aphria has the largest cash balance in the cannabis industry without the dilution of a strategic partner,” interim CEO Irwin Simon said in a statement.
“We are pleased to have secured a term loan that will repatriate a portion of our investment in Aphria Diamond, to be strategically deployed by Aphria. This loan strengthens our balance sheet without being dilutive, and positions Aphria Diamond for success as we expand into new categories and growth opportunities in cannabis to enhance value for shareholders long term.”