Pages

Friday, July 13, 2018

Aphria has really been growing its capacity by every means possible: organically, through partnerships, and by acquisition.

Aphria has really been growing its capacity by every means possible: organically, through partnerships, and by acquisition.

Aphria: 255,000 kg

Though there's a pretty significant drop-off in annual production between the second- and third-largest pot producers, Aphria's (NASDAQOTH:APHQF) estimated 255,000 kg of yearly yield is nothing to sneeze at.
Aphria has really been growing its capacity by every means possible: organically, through partnerships, and by acquisition.

Organically, it's building out the Aphria One project which, when complete, will span 1 million square feet and allow the company to generate around 100,000 kg a year. It's slated for completion in January 2019. Also, it recently announced its intent to construct an extraction center capable of producing cannabis concentrates. When fully operational, this high-margin facility should yield 25,000 kg of cannabis-equivalent production annually. 
In terms of partnerships, Aphria buddied up with Double Diamond Farms to retrofit facilities that had previous been used for tomato production. This joint venture and retrofit saves Aphria time and money, as well as puts 120,000 kg of annual production into play once it's complete in January 2019.
Lastly, Aphria gobbled up Broken Coast Cannabis earlier this year, adding what should be a peak of 10,500 kg of yearly production once its capacity expansion is complete. Aphria also acquired Nuuvera this year for its premier distribution network in foreign markets where medical marijuana is legal.