Aphria Inc (TSE:APHA)(NYSE: APHA) announced today that it had received more good news as the company moves past the negative press that has been hounding the company’s image for so long. Aphria stated in an official press release that the company had received approval from Health Canada to begin expanding an 800,000 square feet of cultivation at its signature Aphria One location.
Aphria is known for being one of the largest producers of cannabis, garnering a reputation of being a strong, low-cost producer of cannabis meant for mass consumption. This approval from Health Canada will see the company’s overall production triple. At the same time, this regulatory approval helps affirm the company’s reputation and image, with some critics of the company reporting rumors that their facilities were not meeting health standards.
“This is a major milestone for Aphria on its path to becoming a leading global cannabis producer, as well as a positive development greatly anticipated by the Canadian cannabis industry,” said Aphria CEO Irwin D. Simon, who replaced Vic Neufeld after his resignation earlier this year. “Aphria’s progress expanding production and automation is essential to our strategy of securing scale and long-term advantages that enable the evolution of the cannabis industry through product and brand innovation. With Aphria One, we now have the ability to expand our production capacity by over three times.”
Aphria’s Part IV and Part V expansion plans are meant to implement cutting-edge production and automation technology to the growth of cannabis. While some aspects of production, like trimming, pruning, and cutting will still be done by hand, other aspects like waste disposal, drying, de-budding, and rough trimming will all be automated through technology, further driving down the costs of cannabis production for the company. Overall, Aphria’s total production capacity will increase to 110,000 kg annually.
In response to the news, Aphria’s stock price increased a modest 2.7 percent as of this article. Over the past couple of months, the company has seen its price recover from it’s all-time low of C$5 in December when reports from short-sellers first came out, to its current price point at C$13.85 per share. This has been more or less the price range the company has always operated in, except for a period in August-September where the stock price surged to C$22 per share.
Aphria Inc Company Profile
Aphria is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market. The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents. –Aphria