Wavesurfer wrote:
Aphria to raise $50-million in bought deal
2017-02-06 08:22 ET - News Release
Mr. Vic Neufeld reports
APHRIA INC. ANNOUNCES $50 MILLION BOUGHT DEAL
Aphria Inc. has entered into an agreement with Clarus Securities Inc., on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 10 million common shares of the company at a price of $5.00 per common share for aggregate gross proceeds to the company of $50-million.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,500,000
Common Shares at the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$57,500,000.
The Company expects that 80% of the net proceeds of the Offering will be allocated towards the currently unfunded portion of Part IV Expansion, with the balance being allocated towards strategic investments.
The Common Shares will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, other than the Province of Quebec, by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.
The Offering is expected to close on or about February 24, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the "Exchange").
In connection with the Offering, Delavaco Group has been appointed as a special advisor to the Company.
About Aphria
Aphria Inc., one of Canada's lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. The Company is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. Aphria is the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
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