It’s finally happened. Aphra Inc’s (TSX: APHA) (NYSE: APHA) Aphria Diamond facility has finally received its cultivation license from Health Canada. The update, published by Health Canada after market hours today, indicates that the facility has been authorized for the purpose of cultivation of plants and seeds.
The facility was constructed in concert with that of Double Diamond Farms, a Leamington, Ontario-based greenhouse operator through a joint venture agreement. Originally announced in January of 2018, the facility has had a long and storied path to receiving its cultivation license. Originally, the facility was expected to see its first sales occur in January 2019. Almost a full year later, the 32 acre greenhouse facility has finally received its license to cultivate.
Licensing at the Aphria Diamond facility was originally submitted in March 2018, prior to rule changes conducted by Health Canada in an attempt to speed up the process for those who had completed construction. As a result of the endless delays in acquiring licensing, The Deep Dive recently compiled a timeline of construction progress to make things clear for investors.
Now that it’s finally licensed, the facility is expected to produce in excess of 140,000 kilograms of cannabis per annum. The massive facility significantly improves Aphria’s total Canadian capacity, which now sits at 255,000 kilograms per annum with today’s licensing news.
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Aphria owns approximately 51% of the joint venture facility, while Double Diamond Farms retains 49%. Total facility construction costs are in excess of $109.5 million.
Aphria is currently trading at $5.20 in after hours trading on the New York Stock Exchange.
Information for this briefing was found via Sedar, Health Canada and Aphria Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
