Aphria Inc. (TSX:APHA; NYSE:APHA) very recently announced, pending final approval, its acquisition of CC Pharma GmbH (“CC Pharma”), a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany. According to the press release, the transaction, when closed, will strengthen the Company’s end-to-end medical cannabis operations and infrastructure in Germany, a key market in Aphria’s international expansion. It is anticipated that the transaction will close in January 2019. The company has a three-pronged approach in Germany, covering demand, supply and distribution. It has acquired a stake in Schöneberg Hospital in Berlin and is building a state-of-the-art GMP vault in northern Germany capable of storing 5,000 kilograms of dried flower, and is planning on building a research and development indoor growing facility in Neumünster, Germany.
Aphria Inc.
There is a whole lot of Canada poised to capitalize on the German market until it becomes self-sufficient on its own to meet demand, which may take some time. With margins that could double those experienced in Canada, and a market size that is double that of our fine nation, it’s no wonder Canadian LP’s are clamoring for a piece of that pie, … or should I say, piece of that streusel.
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Spiro Sertsis, CPA, CMA
@SpiroSertsis
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