Topic: How To Invest

Q: Pat, now that cannabis is legal, what do you think of Aphria Inc. as an investment? Thank you.

Article Excerpt

A: Aphria Inc., $16.39, symbol APHA on Toronto (Shares outstanding: 249.5 million; Market cap: $4.1 billion; www.aphria.com), is a cannabis company based in Leamington, Ontario. Aphria continues to pursue a strategy of low-cost production of top-grade cannabis using the latest technologies for greenhouse production. The company has a portfolio of medical and recreational brands, including Solei Sungrown Cannabis, RIFF, Good Supply, and Goodfields. It also has a presence in more than 10 countries across five continents. Aphria continues to expand its production facilities (all in Leamington, Ontario) and will soon be capable of producing more than 225,000 kilograms of cannabis annually. It has invested in automation in order to maintain a low-cost advantage and to avoid the labour shortage that is beginning to affect the industry. In March 2018, the company announced it was building a $55 million cannabis-oil extraction facility in Leamington. To help pay for the facility, it raised $225 million in a June 6, 2018 share offering. Aphria’s acquisitions include paying $217…