Aphria Inc

Aphria is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible.

Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market. The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment.

Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.

Investor Presentation







Aphria produces, supplies, and sells medical cannabis in Canada. The company sells its products through its online store or phones, as well as engages in the wholesale shipping of medical marijuana plant cuttings and dried buds to other licensed producers.

Aphria is the second largest producer of cannabis in Canada (behind Canopy Growth) and is set to be one of the 3 giants of the industry. A fully vertically and horizontally integrated business, it has delivered profits for the past 11 consecutive quarters and its top line is growing at a high double-digit rate. Its revenue saw a year-over-year growth of 68% in the most recent quarter.

In the global market! They are growing machines! They build and operate the largest sites in Canada, and nearly half of all Canadian medical marijuana patients are its customers.

Aphria is producing marijuana at a very high rate — and it is preparing to expand production big time over the next couple of years. They should be in a great position to capitalise on Canada’s recreational legalisation next year. Its growth will mostly be a story of cost control. Aphria grows in outdoor greenhouses, which is far cheaper than the indoor producers. While the product itself isn’t quite the quality what the indoor growers produce, the quantity and cost more than justifies the strategy.

Investment Highlights



One of the major benefits to Aphria is its cost control. With many sources predicting a shortage of marijuana once legalisation hits next year, Aphria should be well positioned to supply consumers at a very attractive cost compared to its peers.

Outdoor greenhouses are far cheaper than the indoor producers. While the product itself isn’t quite the quality the indoor growers produce, the quantity and cost more than justify the strategy.

This unique cost structure enables Aphria to capitalise on wholesale advantages

Strong distribution foundation

  • Increasing patient sales
  • Highly profitable (~ 70% margin with 30% costs below the line)


  • Sale of bulk product to other H.C. Licensed Producers and Licensed Dealers
  • 50% margin but no costs below the line


Aphria is producing marijuana at a very high rate — and it is preparing to expand production big time over the next couple of years. They should be in a great position to capitalize on Canada’s recreational legalization next year. Its growth will mostly be a story of cost control.

Aphria grows in outdoor greenhouses, which is far cheaper than the indoor producers. While the product itself isn’t quite the quality what the indoor growers produce, the quantity and cost more than justifies the strategy:

PART I (Operational)

  • 43,000 square feet @ $55 per square foot
  • 3,700kg current annual production

PART II (Operational)

  • 57,000 square feet @ $55 per square foot
  • Grow to 100,000 square feet of production space
  • $10 million project


These projects will allow Aphria to meet the explosion of demand once legalization hits and keep rock bottom prices. Once the legal floodgates open, it will be able to produce and sell far more product than its competitors.

This is by far the greatest USP it has. Being the world’s lowest cost producer of marijuana in a market where demand will completely outstrip supply, provides the basic economic foundation for massive profitability.

PART III EXPANSION (Ready for April 2018, pending Health Canada approvals, FULLY FUNDED)

  • 200,000 square feet @ $55 per square feet
  • Demolish and build to current Leamington greenhouse standards
  • $24.5 million project FULLY FUNDED

PART IV EXPANSION (Ready for May 2019, pending Health Canada approvals)

  • 700,000 square feet @ $50 per square feet
  • Build to current Leamington greenhouse standards
  • $137 million project
  • Update: It closed a debt financing raising for over $105 million to fully fund the Part IV expansion project.

Future Production Capacity

The foundation has been laid, through internal facility growth, as well as strategic alliances with suppliers and other licensed producers. All of which will allow for the supply of low costs medicinal and recreational marijuana in a market where demand will completely outstrip supply.

Strategic Growth

Double Diamond Farms

  • Created GrowCo (51% owned by Aphria, 49% owned by Double Diamond)
  • To purchase 100 acre farm owned by Double Diamond
  • Almost 32 acres of state-of-the-art, Dutch style newly built greenhouses plus 72,000 square feet of infrastructure (first planted crop will be cannabis)
  • Supply agreement to supply at least 120,000 kgs of dried cannabis to Aphria
  • Requires $80 – $100 million in capital to purchase farm (at appraised value) plus retrofits for growing cannabis, funded by $20 million in seed capital by the Parties. Remainder to financed by loans from a commercial lender, with Aphria to lend any shortfall.


Broken Coast

Broken Coast Cannabis, a medical cannabis producer based in British Columbia, is Canadian owned and operated. Broken Coast believes that quality results from adhering to strict procedural protocol and environmental control. Through an extensive system of operating procedures, they provide the highest levels of purity, quality, and customer satisfaction.

Premium cannabis is grown hydroponically in a custom-built facility, in small batches in single-strain rooms, and harvested on a rotational cycle to ensure they have a steady supply of fresh product in stock.

    • Industry-leading market position and geographic diversification

  • Established brand and highly regarded product quality solidifies recreational positioning and strategy
  • Extensive genetic library and differentiated product offerings
  • Combined production practises and proprietary technological knowhow
  • Complimentary low cost cultivation
  • Highly experienced management team with a West Coast foothold


Nuuvera is a global cannabis company founded on Canadian principles, and built with the whole world in mind. Nuuvera is currently working with partners in Germany, Israel and Italy, and is exploring opportunities in several other countries, to develop commercial production and global distribution of medical grade cannabis in lega

Through its subsidiaries, ARA – Avanti Rx Analytics Inc. and Avalon Pharmaceutical Inc., Nuuvera holds a Dealer License (GMP) under the Narcotic Control Regulations and Office of Controlled Substances. Nuuvera is currently in the final stages of the Health Canada review process to become a Licensed Producer of medical marijuana under the ACMPR, and has recently received its “letter to build” approval.lised markets.

    • Combination capitalises on Nuuvera’s expansive international footprint, expanding network into Europe, Africa and the Middle East
    • Transaction combines Aphria’s low-cost, high quality cultivation at scale with Nuuvera’s expertise in cannabis processing, and provides access to Nuuvera’s state-of-the-art testing and extraction facilities
    • The acquisition of Nuuvera bolsters Aphria’s recent accretive and value-add transactions, including Broken Coast

  • Nuuvera’s expertise in extraction, distillation and processing of advanced medical-grade derivative products supported by Aphria’s low-cost, high-quality cultivation to scale unlocks greater economic value for the combined company.
  • Brings together two strong management teams with highly complementary expertise and international relationships

Liberty Health Divestment

  • The basis for the transaction is the Toronto Stock Exchange (“TSX”) rules and regulations governing the passive investment in US marijuana focussed companies by the parent company
  • Afer the initial divesture, Aphria maintains 28.1% interest in Liberty and 2 of 5 directors
  • The sale of a portion of our investment in Liberty Health Sciences provides excellent returns for their investors and the company continues to work together with the Toronto Stock Exchange to ensure compliance with its staff notice regarding US cannabis investments

Transaction Details

  • The Company divested 26,716,025 shares in Liberty, at a price of $1.25 per share
  • The Transaction also includes a call/put option for the remainder of the Company’s shares, which are currently subject to the CSE mandatory escrow requirements.
  • As each new tranche of shares becomes freely trading, the Option Agreement results in the buyers acquiring the newly freely trading shares at an 18% discount to the market price of Liberty, based on Liberty’s 10-day volume weighted trading price.
  • The Transaction includes an opt-out for Aphria’s benefit in the event that the TSX amends their regulations such that it permits U.S. based cannabis investments and in such instance the Option Agreement would be automatically terminated.
  • The cost to Aphria of the divested shares was $0.234 per share, resulting in a gain to Aphria of approximately $27 million.
  • The Company continues to work collaboratively with the TSX with respect to their staff notices regarding its investments in U.S. based medical cannabis related entities.

management team

Vic Neufeld - President & CEO

Vic Neufeld is the President and Chief Executive Officer of Aphria. Mr. Neufeld is the former CEO of Jamieson Laboratories, Canada’s largest manufacturer and distributor of natural vitamins, minerals, concentrated food supplements, herbs and botanical medicines. Mr. Neufeld brings 15 years of experience as a chartered accountant and partner with Ernst & Young and 21 years as CEO of Jamieson.

During his tenure with Jamieson, the company went from $20 million in annual sales to over $250 million and expanded the company’s distribution network to over 40 countries, building Jamieson to a globally recognized brand name. Mr. Neufeld, a native of Leamington, Ontario, earned a Bachelor’s degree in Economics from Western University, Honours degree in business from the University of Windsor and an MBA from the University of Windsor. Mr. Neufeld is also a CPA.

Cole Cacciavillani – Co-Chair & Founder

Cole Cacciavillani, Aphria’s co-founder, is an industrial engineer with 35 years of experience in the agricultural and greenhouse industry. Cole has accumulated expertise of how to best utilize nature’s light and proprietary growing techniques and technologies to create competitive, safe and cost effective products.

Mr. Cacciavillani sits on a number of charitable and associative boards including serving as:
past Chairman of the Board for Leamington Memorial District Hospital as well as serving on the Hospital’s Foundation Board. Cole was a founding chair of The Ontario Greenhouse Alliance; serves on the board of The Agricultural Institute of Ontario, Police Services Board, F.V. Energy Co-op, and the Leamington Economic Development Committee.

John Cervini – Co-Chair & Founder

John Cervini, Aphria’s co-founder, comes from fourth generation growers in southwestern Ontario with hydroponic agricultural experience. Together with his father and brother, Mr. Cervini helped established Lakeside Produce, a of North America sales and marketing companies selling fresh produce from Canada to multinational retailers throughout North America. Mr. Cervini has significant experience in greenhouse growing technology and has also overseen greenhouse expansions to California and Mexico.

Mr. Cervini’s focus on improved efficiencies, healthier quality and the latest research studies helped him create an industry leading food safety program. Mr. Cervini understands the need and importance of product safety, product traceability and standardized industry procedures. Mr. Cervini is the founding chair of the Ontario Greenhouse Marketing Association remains involved in the industry as part of the Ontario Greenhouse Vegetable Growers Association.

Carl Merton - Chief Financial Officer

Carl Merton, Chief Financial Officer, has over 20 years of financial and business experience, having spent almost 12 years combined with Ernst & Young LLP and KPMG LLP prior to serving as Vice-President, Special Projects at Atlas Tube Canada ULC, Chief Financial Officer of Reko International Group Inc. (TSXV: REK) and Chief Financial Officer of Aphria Inc.

Mr. Merton is a Chartered Professional Accountant, Chartered Accountant and is a Fellow of the Canadian Institute of Chartered Business Valuators (the “CICBV”). As the Chief Financial Officer of Aphria, Mr. Merton is responsible for leading strategic discussions, acquisitions and divestitures, budgeting, financing, financial reporting and internal controls. Mr. Merton holds an Honours Bachelor of Commerce in Sports Administration from Laurentian University.

Gary Leong - Chief Science Officer

Gary Leong, Aphria’s Chief Scientific Officer has a personal background in quality assurance, quality control, quality system audits, international and domestic regulatory affairs and product research and development. Gary’s commitment to research and scientific knowledge of the medical marijuana industry allows us here at Aphria to produce a cost effective and quality product.

Gary currently is the president of Neautrical Solutions Inc. located in Surrey, British Columbia. Prior to that, he was the Chief Scientific Officer at Jamieson Laboratories Limited. He began at Jamieson in the year 2000 as the Vice President of Scientific and Technical Affairs. He also held the position of Quality Control Manager at Boehringer Ingelheim Consumer Products: Quest Vitamins and Development Officer at Atomic Energy of Canada: Radiochemical Company.