Leamington, ON (pcJ News Briefs) – Aphria Inc. (TSX: APH; OTCQB: APHQF), a Health Canada Licensed Producer of medical cannabis products, has secured a $100 million financing, including a $75 million bought deal equity financing and $25 million in debt financing through a five-year term loan.
The deal is expected to close on May 9, 2017.
Aphria has entered into an agreement with Clarus Securities Inc. as lead agent for a bought deal of 11,538,480 common shares at a price of $6.50 per share for gross proceeds of $75,000,120.
The remaining portion of the raise is comprised of a 5-year, $25 million term loan with WFCU Credit Union bearing interest at 3.95% and a 15-year amortization. The facility will be entered into on May 9, 2017. The term loan is secured by a first charge on the company’s real estate holdings, a first position on a general security agreement, certain cash security and an assignment of fire insurance to the lender.
Aphria expects that 50% of the net proceeds will be allocated towards the currently unfunded portion of Part IV Expansion, with the balance being allocated between the working capital necessary to support the company once the Part IV expansion is complete and strategic investments.
“This fund raising is a testament to the confidence of the investment community in Aphria’s success to date and our vision for the future,” said Vic Neufeld, CEO of Aphria.
photo credit: Aphria