Aphria Inc


 

 

Income Statement May 31, 2016 May 31, 2015 Aug 31, 2014 Aug 31, 2013
Total Revenue 8.43 0.55 0 0
Gross Profit 5.98 -0.2
Operating Income -1.09 -3.4 -0.14 -0.05
Net Income 0.4 -6.54 -0.13 -0.04

Balance Sheet May 31, 2016 May 31, 2015 Aug 31, 2014 Aug 31, 2013
Total Assets 36.28 14.29 0.18 0.3
Total Liabilities 1.27 0.95 0.03 0.01
Total Equity 35.01 13.35 0.15 0.29

Cash Flow May 31, 2016 May 31, 2015 Aug 31, 2014 Aug 31, 2013
Period Length: 12 Months 12 Months 12 Months 12 Months
Cash From Operating Activities -0.99 -5.44 -0.11 -0.04
Cash From Investing Activities -5.97 -3.03 0.12 0.03
Cash From Financing Activities 16.38 15.36 0
Net Change in Cash 9.42 6.88 0 -0.01

Release Date Period End EPS /  Forecast Revenue /  Forecast
Apr 19, 2017 02/2017 /  — /  —
Jan 16, 2017 11/2016 0.01  0.01 5.23M /  —
Oct 24, 2016 08/2016 0.01 /  — 4.38M /  —
Sep 12, 2016 05/2016 0.02 /  0.01 2.78M /  3.14M
Apr 22, 2016 02/2016 0.02 /  — 2.68M /  —

* In Millions of CAD (except for per share items)


Price Target 2017 : $7.50       Analyst Consensus :  STRONG BUY        Market Sentiment : Very Bullish


About Aphria Inc

Aphria Inc.: Aphria produces and sells medical marijuana through its subsidiary, Pure Natural Wellness. It obtained its first license in November 2014, and sells to both individual patients and other LPs on a wholesale basis. The Company is based in Leamington, Ontario, near Windsor. Management believes it is fully funded to expand annual production capacity from 7,500 kg to 21,000 kg by September 2017 (its Part III Expansion). The Company has also announced plans to eventually expand to 39,000 kg (Part IV Expansion) by December 2017, with plans to be operational in April 2018 pending Health Canada approvals. Aphria currently sells product to both individual patients and other LPs, and oil sales now represent more than 10% of revenue. Aphria is also the first publicly traded LP to report positive earnings in consecutive quarters.


Production:

The Company’s Leamington greenhouse facility is currently licensed to produce up to 3,600 kg of dried marijuana (with sales up to 2,800 kg), and up to 450 kg of cannabis oil. The Company has also announced plans to acquire 200 acres for $6.2M to develop a second site.


Aphria owns 17% Major Referral Clinic:

Following an $8.4M investment made in December 2016, the Company owns almost 17% of Canabo Medical (CMM-TSXV, NR), one of the largest medical cannabis referral networks in Canada. CMM operates 10 clinic locations, with multiple operations in Ontario, and additional locations in Nova Scotia, Newfoundland, and Alberta.


Agreement with Social Media Platform to Drive Referrals:

In October 2016, Aphria announced an agreement under which MassRoots is to build brand awareness amongst its Canadian user base in return for per-patient referral fees. MassRoots is positioned as ‘the social platform for marijuana’ and has over 900,000 users.


Downstream Expansion via Supply Agreements:

In September 2016, the Company announced an agreement with Bodhi Research Inc. under which Aphria will provide cannabis oil for Bodhi’s study of the impact of medical cannabis in managing concussions and post-concussive syndrome. In November 2016, Aphria announced a similar agreement with Tetra Bio-Pharma (TBP-CSE, NR) to supply dried cannabis as an active agreement for TBP’s prescriptioncontrolled inhalation product.


International Expansion via Investment in Arizona-based Producer:

In October 2016, the Company announced an agreement with Copperstate Farms LLC under which Aphria will share its greenhouse growing knowledge in return for an ownership stake in Copperstate, a licensed producer based in Arizona. Including a separate investment by APH, it owns a 10% membership in the parent company, and a 5% membership interest in the operating subsidiary.


Branding Agreement with Premium Lifestyle Brand:

In September 2016, Aphria announced a licensing agreement under which it will produce Tokyo Smoke-branded cannabis in Canada. Tokyo Smoke is a premium lifestyle brand offering coffee, clothing, and cannabis. Its flagship store is in Toronto, and it intends to expand its cannabis presence to the US in 2017. In January 2017, Aphria announced that Tokyo Smoke would release four branded cannabis strains in Q117.


Source : Echelon wealth partners report