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 meowmeowmeowon Mar 03, 2020 4:45pm

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Post# 30762804

RE:RE:RE:RE:100 million was by Spartan fund and MMCAP

Someone post this on Weedstocks - definately needs more eye balls on it.

dilanp15 wrote: Let me also help you re-read the statement on MMCAP's fund. - https://spartanfunds.ca/documents/MMCAP/MMCAP.pdf

"In the convertible bond portfolio, gains, losses and hedges offset. Accrued interest during the month contributed positively to returns. The credit quality of a position in Aphria was further enhanced with the completion of a $100m equity investment in the company. The credit remains strong with total cash exceeding debt outstanding and the company generating positive EBITDA."

dilanp15 wrote: I had to sign in to post after such a long hiatus.

Daredevil,

You are by first one of the most hypocritcal people I've met. Do you not have any reading comprehension? In MMCAP's report they mention that a $100M investment has increased their credit quality on Aphria. Credit Quality refers to a debt instrument...meaning that they were the ones who financed the CD raise back in 2019. The $100M EQUITY investment is someone completely different. Here's an exert from someone else. Hopefully you can follow along and understand it.

"MMCAP holds convertible debentures from previous raises (likely April 2019 raise). The $100mil equity investment from someone else strengthened the position of those convertible debentures because the investment increased Aphria's assets while the liabilities remained the same, thereby lowering the chance of Aphria defaulting on those CD's.

How would MMCAP investing $100mil in equity, in any way, enhance the credit quality of said equity investment?

The credit quality of a position that MMCAP holds was enhanced... which it would be considering that Aphria strengthened its balance sheet with that investment and is less likely to default on that existing position. They would not be referring to enhanced credit quality on a 100% equity investment. They would, be referring to credit quality on their convertible debentures."