Canadian cannabis producer Aphria said?Friday?it has entered into an agreement with an institutional investor for a strategic investment worth 100 million Canadian dollars ($76 million).
Chief Corporate Affairs Officer Tamara Macgregor told Marijuana Business Daily the investor requested to remain anonymous.
Each unit comprises one common share and a half of one common share purchase warrant. Each warrant entitles the investor to acquire one common share at a price of CA$9.26 for a period of 24 months from the closing date.
If exercised, that would add a potential CA$60 million.
The Leamington, Ontario, company said the investment will strengthen its cash balance to nearly CA$600 million.
Aphria says it intends to use the proceeds to finance international expansion, working capital and general corporate purposes.
Chief Financial Officer Carl Merton said the investment represents an endorsement of Aphria in tough market conditions.
“We expect this strategic investment to strengthen our balance sheet and propel Aphria forward as we continue to differentiate ourselves in the industry,” Merton said in a statement.
Aphria reported a net loss of CA$8 million for the second quarter ending Nov. 30, 2019.