$2 bought deal news releaseLeamington, Ontario – August 18, 2016 – Aphria Inc. (“Aphria” or the “Company”) (TSX-V: APH or USOTCQB: APHQF) is pleased to announce it has closed its short form prospectus offering, on a bought deal basis, including the exercise in full of the underwriters' over-allotment option. A total of 17,250,000 common shares (the “Shares”) of the Company were sold at a price of $2.00 per Share, for aggregate gross proceeds of $34,500,000 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by Clarus Securities Inc. and included Sprott Private Wealth LP, Mackie Research Capital Corporation and Cormark Securities Inc. (collectively, the “Underwriters”).
The net proceeds of the Offering are expected to be used in connection with the Company’s ongoing expansion of Aphria’s production capabilities beyond its ongoing “Part II Expansion”, including the planning, design, development, construction and implementation of a project internally identified as “Part III Expansion”. It is currently anticipated that Part III Expansion is expected to commence during the Company’s second quarter, but remains subject to the approval of the Company’s Board of Directors (“Board”). Until approved by the Board and deployed by the Company, the net proceeds of the Offering will be held as cash balances in the Company’s account or invested at the discretion of the Board.