Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer

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Aphria Inc.

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Comment by 40Baggson Dec 23, 2018 10:22pm

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Post# 29152872

RE:RE:RE:RE:RE:RE:RE:RE:Napkin Math

Unlikely any Apha product was returned during this massive supply issue. Any product shipped on order would be an account receivable and booked to revenue, regardless of when payment received. They stocked the 8400kgs for the known shortage that was coming. Interested to see what the avg sales price for rec products were considering most were selling at $11-$15/g in retail Alberta stores. It could be deferred revenue until it is shipped from AGLC to retail, not too sure. This would be beneficial if we are expecting massive investment gains this quarter as there wont be much monthly sales growth until P4 and P5 are online and harvests are shipped to provinces.

thorgb1 wrote:

INVSTIGAT0R wrote:
Then couldn't we* technically be seeing a full 3 months of rec sales? The payment invoice would likely be immediately when we shipped product to the OCS and/or other receivers across Canada.

Personally, I don’t think so. If I remember correctly, the LCBO does a stocking order, but doesn’t pay suppliers until the product is actually sold. Slow moving and unsold product can be returned to the supplier easily this way. I assume the OCS works the same way. Would love to be wrong on this, but just erring on the side of caution.