Tilray Brands Inc. (APHRIA INC.)

Company Overview

Aphria Inc., one of Canada’s lowest cost producers, grows, supplies and sells medical cannabis throughout Canada, the United States and in certain areas of Europe and Latin America. Located in Leamington, Ontario, the greenhouse capital of Canada, Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. Aphria is committed to providing pharmacological grade medical cannabis and superior patient care while balancing patient economics and returns to shareholders. Aphria was the first publicly licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters. The company was founded in 2013. 

A direct reflection of its immediate success was a two-phase growing facility expansion to increase marijuana production from the current 1,200 kg to 1,500 kg to an eventual 7,500 kg. Aphria stated at the time, it would like to utilize some of this expansion to further enlarge its wholesale business along with accommodating its ever-increasing patient enrollments. Throughout the diversification and expansion, Aphria has proven that positive free cash flow can still be generated even during the growth and expansion phase of a business. 

The company continues to invest in strategic partnerships to expand the brand and Apria business. The most recent agreement was announced on Aug. 4, 2020 with Canndoc Ltd (Israel) which outlines the agreement with Aphria supplying Canndoc with medical grade derived bulk flower over a two-year period which will be processed into finished product under a co-branded Aphria/Canndoc brand names and sold in the Israeli market. This agreement focus on the expansion of medical cannabis with leading hospitals and research institutions in Israel and explores potential collaboration agreements in the EU market. 

Advancing product lines are also a primary focus for Aphria. The company has agreements with Rapid Dose Therapeutics and Manna Molecular Science for the administration of cannabis using various delivery systems. Rapid Dose Therapeutics specializes in oral fast-dissolving drug delivery technologies including its innovative QuickStrip product which has been licensed to Aphria for use with both medical and adult-use cannabis. Manna is a developer of transdermal patch technologies which Aphria has licensed to deliver patches containing cannabis oils for its established suite of medical and adult-use brands.