Aphria Inc. (TSX: APH and US OTC: APHQF) today announced that it has signed a supply agreement with Australian-based Althea Company Pty Ltd. and invested $2.5 million in Althea in exchange for 25% shareholdings in the Company. The investment increases Aphria's presence in the emerging Australian cannabis market.
As part of the supply agreement, Aphria will provide Althea with packaged co-branded cannabis oil and dried flower products for the Australian medical cannabis market, further expanding Aphria brand's footprint globally. Althea has already received import permits from the Australian Government's Office of Drug Control (ODC) and Aphria is expected to export the first shipment this month, subject to regulatory approvals by Health Canada.
This is the second supply agreement Aphria has entered into with the Australian market as the Company continues to expand its international operations. In October 2017, Aphria announced that it had completed its first shipment of cannabis oil to Australian medical life science company, Medlab Clinical Limited.
"Australia's fledgling medical cannabis market continues to present attractive growth opportunities and is a key pillar of Aphria's international expansion strategy," said Vic Neufeld, CEO of Aphria. "We are excited to work with Althea to realize the market potential and ensure that Australian patients get access to high-quality medical cannabis."
"Althea is very pleased to partner with Aphria, a global leader in cannabis production, to supply medicinal cannabis products to the Australian market," said Josh Fegan, Managing Director of Althea. "Australian patients deserve immediate access to a wide range of quality medication and this strategic investment and supply agreement enables Althea to meet the growing patient demand for medical cannabis, whilst the company establishes its domestic operation."
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About Aphria
Aphria Inc., one of Canada's lowest cost producers, produces, supplies and sells medical cannabis. 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 pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders.
About Althea
Althea focuses on the supply of high-quality medicinal cannabis for eligible patients across Australia. Althea prides itself on patient care and will be the first cannabis company in the world to offer a complimentary concierge service, providing a simple pathway for healthcare professionals and patients to access medication. Upon approval of its medicinal cannabis licence, Althea will commence with the construction of a state-of-the-art greenhouse facility located in Victoria.
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Aphria Continues Expansion into Australia with Strategic Investment in Althea Company Pty Ltd.
