Cannabis producer Aphria announced it will make a big investment in Leamington, Ont., saying it’s raising $225 million to pay for new and expanded cannabis facilities in Canada, as well as potential global expansion and acquisitions.
The company said some of the funds will go towards a new $55 million extraction facility in Leamington that will use a variety of methods to produce concentrated cannabis products like oils.
The company said the modern facility, which will be able to process more than 200 tonnes of cannabis annually, will help it prepare for what’s expected to be a significant product category.
“The Extraction Centre of Excellence will give Aphria a significant competitive advantage in cannabis concentrates, which are expected to be a significant product category,” said Aphria CEO Vic Neufeld, in a press statement. “This facility will be the centre of industry-leading R&D and commercial production of next generation cannabis concentrate products.”
Aphria said it also plans to spend an additional $20 million at its Aphria Diamond facility to increase capacity by 20 tonnes annually and allow for alternative growing techniques, and $10 million to add 10 tonnes of capacity to its Aphria One operation.
The company will raise the money through the sale of 19 million shares at $11.85 each. The financing is being led by Clarus Securities Inc.
Aphria’s share price closed up 63 cents or 5.18 per cent at $12.79 after announcing the facilities expansions. The financing was announced after market close.