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 Jan 07, 2019 10:15pm

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Post# 29198233

RE:A 100 Million Dollar Question

ScotiaOne wrote:
WE DON’T KNOW what those original acquisitions costs are, but it would sure be nice to know.

The sale to Scythian Biosciences Corp. – when the package reaches Scythian for acquisition it is valued as follows:

Colcanna SAS = $33,200,000

ABP Pharmaceutical = $32,250,000

Marigold Projects Jamaica Ltd. = $24,519,990

For a Grand total of $89,969,990

The sale to Aphria

Enter Haywood – the valuation firm who in the course of their number crunching arrives at the following valuation (mere weeks later)

Colcanna SAS = $48,375,000 - 30-50K Kilos = 150-250M @$5/g per year.

ABP Pharmaceutical = $74,700,000 - 40M population, only license, import/export

Marigold Projects Jamaica Ltd. = $61,299,975 - 16K kilos = 80M @$5/g per year. Only retail outlets that serve 4M tourists per year. Export in future

For a Grand total of $184,374,975 (Haywood proposes 180 – 200M Canadian)

Aphria then issues 15,678,310 common shares @ deemed price of $12.31 to arrive at a purchase price of $192,999,996! - That can generate 330M+ revenues a year @$5/gram.

Haywood must have worked hard on this but its ok because they were paid $350,000 USD + expenses to arrive at these valuations. I’m no financial wizard, accountant, or mathematical savant. I’m just an average guy who likes to understand a deal.

Let’s remember that the Colcanna and Marigold properties were UNDER CONSTRUCTION at the time of acquisition and only ABP was generating revenue. Yet in a matter of weeks Aphria pays over 100 Million Dollars MORE for assets recently acquired by Scythian and God only knows how much they were inflated before they got to Scythian! - Thats called business, they do the hard work, you pay for the services/goods. In this case, these operations can generate over $3B in sales in under 10 years from this purchase 200M purchase.. seems reasonable.

Maybe blowing 100 Million+ is not a huge hit when you have a multi-billion dollar valuation and maybe those assets will prove their worth in time. Maybe. - 66,000 kilos/year...earned value.

The only question I am left with is whose pockets got lined at each stage of this little process? Shareholders deserve not to be cheated or have their investment monies squandered in this manner.

Don’t blow a gasket anyone or get nasty. Just prove to me how the above makes sense? I see a hundred million reasons why the truth should not be buried or forgotten. - How about 66,000,000 reasons by 2020. Very Accretive. APHA closes in on 30K kilos a month.