Aphria Inc. (TSX: APH) (OTC: APHQF) announced this morning that the company has entered into a share purchase agreement with private company Scythian Biosciences, Inc. (TSXV: SCYB) (NASDAQ:SCCYF) to acquire 100% of its wholly owned subsidiary LATAM Holdings in exchange for 15,678,310 shares of Aphria, worth a total of $193 million dollars.
With this acquisition, Aphria looks to continue to expand its operations globally. LATAM Holdings currently owns companies, distribution channels, and licenses in Colombia, Panama, Costa Rica, Jamaica, Nicaragua, El Salvador, Guatemala, and Brazil. Executives currently running LATAM Holdings operations will now be integrated with the company, to give Aphria proven executives with years of experience in these regions.
Aphria is set to obtain the following assets from the acquisition of LATAM Holdings
Colcanna S.A.S. is the first cannabis company located in the fertile “coffee zone” in Colombia that owns cultivation, manufacturing, and extraction licenses for medicinal cannabis. The company is expected to have an initial annual output of 30,000 kg.
ABP, S.A owns pharmaceutical owns a series of licenses that include the ability to import CBD oil into Argentina. The company owns a pharmaceutical retail store and distribution warehouse that delivers to their network of pharmacies, distributors, government clinics and hospitals, as well as, has current agreements in place with 20 of the top health insurance companies in Argentina.
With this deal, Aphria is set to obtained a number of different licenses in Jamaica held by Marigold Acquisitions including: a Tier 3 license to cultivate more than five acres of land with cannabis for medical, scientific and therapeutic purposes, a conditional Tier 2 license to process cannabis for medical, scientific and therapeutic purposes, including the manufacturing of cannabis-based products, in a space of over 200 square meters, and conditional herb house retail, therapeutic retail, and R&D licenses.
Vic Neufeld, Chief Executive Officer at Aphria gave the following statement in the press release:
“Aphria is proud with this initiative to create a true leader in medical cannabis across LATAM and extend our leadership in the global industry. We have spent a considerable amount of time and resources evaluating opportunities in Latin America and the Caribbean and we are confident in the long-term strategic opportunity and the value it will bring to our shareholders.”