How Biden could benefit Aphria In addition to spending heavily on clean energy and infrastructure, the Biden campaign has promised to decriminalize marijuana at the federal level. It would be an important step toward full-fledged legalization in the U.S., and it could make it easier for cannabis companies to gain greater access to banking and other much-needed services. It might also help to improve Americans' views toward cannabis, perhaps accelerating legalization at the state level in the process.
These trends would all be highly beneficial to Aphria (NASDAQ: APHA). Aphria is one of the more profitable cannabis companies, with six straight quarters of positive adjusted earnings before interest, taxes, depreciation, and appreciation (EBITDA). It's also flush with cash; Aphria ended its most recent quarter with over $400 million in cash reserves.
Better still, Aphria is well-positioned to profit from the growth of the U.S. marijuana market. The cannabis producer recently reached an agreement to acquire Sweetwater Brewing Co., one of the largest independent craft brewers in the U.S. and maker of the popular 420 brand. The deal is expected to strengthen Aphria's retail distribution network in the U.S. ahead of federal legalization of cannabis -- which could come sooner than investors currently expect, should Biden be elected president.