Nuuvera a global cannabis company focused on looking for opportunities in regulated jurisdictions, closed a deal with Aphria that sees the LP invest in a $2 million common share offering.
Announced on Wednesday (August 9), Aphria will receive $4 million for 100 acres of land on the company’s Mersea property. According to the statement, Nuuvera plans to build a 1 million square foot greenhouse in this newly acquired space, for which Aphria will provide “consulting services.”
Aphria invests in company close to becoming an LP
The LP will provide Nuuvera with 1,500 kilograms of cannabis until Aphria completes their four-part expansion in 2018. The amount will then increase to 17,000 kilograms.
“This partnership is further recognition by the global cannabis industry of the strength of our greenhouse growing intellectual property,” Aphria’s CEO Vic Neufeld said in the press release.
Lorne Abony, CEO of Nuuvera said that–thanks to this partnership–his company will become “one of the largest Canadian producers.”
Nuuvera has applied to become an LP and is awaiting a verdict from Health Canada regarding its application. The company claims it is also chasing opportunities in for cannabis business in Europe, Israel and Latin America.
As part of their financial report, the company announced it had gained over 5.5 million in revenue for the first three months of 2017. Aphria was also able to increase their capacity expectations for the upcoming phases of their expansion project.
— Aphria Inc. (@AphriaInc) July 13, 2017
“As the medical marijuana industry rapidly expands, we believe there is a need to establish a consistent, responsible and transparent definition for licensed producers to calculate their costs to produce dried cannabis per gram,” Neufeld said at the time.
Since joining the TSX on March 22 of this year, shares of Aphria have dipped 5.44 percent drop since its launch.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.