Aphria Inc. APHA

Key Operating Highlights – First Quarter Fiscal 2021

[Daredevil1964]

• Record gross revenue for adult-use cannabis of $69.6 million in the first quarter, an increase of 23% from prior quarter and the sixth consecutive quarter of growth.
• Net cannabis revenue of $62.5 million in the first quarter, an increase of 103% from prior year quarter.
• Net revenue of $145.7 million in the first quarter, an increase of 16% from prior year quarter and decrease of 4% from prior quarter, solely due to lower distribution revenue driven by the COVID-19 global health crisis.
• Cash cost to produce dried cannabis per gram of $0.87 in the first quarter, a decrease of 1% from the prior quarter, and decreased for the fourth consecutive quarter.
• Adjusted EBITDA from cannabis business of $10.4 million in the first quarter, an increase of 11% from the prior quarter.
• Adjusted EBITDA of $10.0 million in the first quarter, an increase of 17% from the prior quarter.
• Ended first quarter with a strong balance sheet and liquidity, including $400.0 million of cash and cash equivalents to fund planned Canadian and International growth.
• Aphria transferred its stock exchange listing from the New York Stock Exchange to The Nasdaq Global Select Market ("Nasdaq") on June 8, 2020. This transition did not impact the Company's primary listing on the Toronto Stock Exchange (TSX: APHA).
• Filed Prospectus supplement for $100 million (USD) At-the-Market program ("ATM Program") on July 29, 2020 which the Company plans to use for acquisition opportunities.
• Good Supply and P'tite Pof launched large-format SKUs, and launched new brand B!NGO, a large format, economy brand utilizing lower potency cannabis.

Subsequent Events

• Aphria entered into a Strategic Supply Agreement with Canndoc Ltd. ("Canndoc"), a subsidiary of InterCure Ltd., (TASE: INCR/INCR.TA), one of Israel's largest and most established medical cannabis producers on August 4, 2020.
• Liquidated the convertible note receivable from HydRx Farms Ltd.
• Company completed its first certified European Union Good Manufacturing Practices ("EU GMP") shipment of dried flower from its Aphria One EU GMP facility to CC Pharma, a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany.

Key Financial Highlights
(In thousands of Canadian dollars)