Aphria net loss nearly doubles in Q4 even as revenues surged to $12 million

The Leamington, Ont.-based company's net loss nearly doubled to $5 million from $2.6 million in the prior year on higher compensation, costs associated with Aphria International and losses in its investment portfolio, partially offset by increased gross profit..

The company has been busy raising money and making acquisition deals, including its February purchase of B.C.-based Broken Coast Cannabis Inc., a transaction valued at more than $200-million in stock and cash.

Most recently, it said it plans to expand its cannabis business into South America and Jamaica by acquiring a subsidiary of Scythian Biosciences Inc. for an undisclosed price.

The company posted $12 million in revenues for the three months ended May 31. That's up from $5.7 million a year ago and 17 per cent higher than the $10.3 million recorded in the third quarter.

The increase was driven by the inclusion of Broken Coast results for the full quarter and increased sales to medical patients, offset by its decision to discontinue wholesale sales to other licensed producers and lower cannabis oil sales to Broken Coast patients.

For the full year, Aphria said its net income increased seven-fold to $29.4 million or 18 cents per share, up from $4.2 million or four cents per share in 2017.

Annual revenues were $36.9 million, up from $20.4 million.

Aphria says its cash costs to produce dried cannabis improved by one cent to 95 cents per gram.

The company has expanded its global presence beyond Canada, the U.S. and Australia to include several countries in Europe and South America.

Its annual production capacity in Canada is expected to grow to 255,000 kilograms in January 2019, up from 35,000 kgs currently.

Analyzing the performance of marijuana company is tough because of accounting rules used in the agriculture industry that require companies to put a value on their pot plants before they are harvested, and approaches differ between producers on how to apply these guidelines.

Companies in this story: (TSX:APH) Source

APH Falls And Anonymous Shorts

Since July 9th Clarus purchased $7,067,826 Net Invested prior to this rotten red day for Aphria.  And $3,497,685 .00 of that was in the last week

Do you think a lead underwriter would be privy to the 6 cent loss?

20180730

0

14,000

155,871

11.134

-14,000

318,100

155,871

Net Buys $3,497,685

So why would they take that money and now have a huge loss?
They were supporting their client who paid them a commission of 
Clarus Commission $12,290,662.72 ( due to over-allotment) 

Short Positions for APH

Symbol	Report Date	Volume	Change	Shares Issued	% Float
T : APH	2018-07-15	5,750,974	-1,157,648	232,005,434	2.48
T : APH	2018-06-30	6,908,622	-6,411,236	232,005,434	2.98
T : APH	2018-06-15	13,319,858	7,472,958	210,125,411	6.34

So did ANONYMOUS sell short today? 
We wont know until August 15th report on short sales.


Aphria Inc. is pleased to announce it has closed its short form prospectus offering, on a bought deal basis, including the exercise in full of the underwriters' over-allotment option. A total of 21,835,510 common shares of the Company were sold at a price of $11.85 per Share, for aggregate gross proceeds of $258,750,794. 

Clarus Securities Inc. and included Canaccord Genuity Corp., Cormark Securities Inc., Haywood Securities Inc. and  INFOR Financial Inc. (collectively, the “Underwriters“).Price: $11.85 per Common Share Price to the Underwriters’ Net Proceeds to Public(1) Fee(2) the Company(3) Per Offered Share .............................. $11.85
$0.5629 $11.2871 Total ....................................... $225,000,690

Clarus Commission $12,290,662.72 ( due to over-allotment) 
and other brokerages as Clarus has privately negotiated.

NET PROCEEDS TO COMPANY $214,313,157.22

The Underwriters have been granted an over-allotment option, exercisable, in whole or in part, at the sole discretion of the Underwriters, for a period of 30 days from and including the Closing Date, to purchase up to an additional 2,848,110 Offered Shares (the ‘‘Over-Allotment Shares’’) at the Offering Price to cover the Underwriters’ over-allocation position, if any, and for market stabilization purposes (the ‘‘Over-Allotment Option’’). If the Over-Allotment Option is exercised in full, the total ‘‘Price to the Public’’, ‘‘Underwriters’ Fee’’ and ‘‘Net Proceeds to the Company’’ will be $258,750,794, Commission $12,290,662.72 and $246,460,131.28, respectively. This Prospectus qualifies the grant of the Over-Allotment Option and the distribution of the Over-Allotment Shares issuable upon exercise of the Over-Allotment Option. A purchaser who acquires Over-Allotment Shares forming part of the Underwriters’ over-allocation position acquires those Over-Allotment Shares under this Prospectus, regardless of whether the over-allocation position is ultimately filled through the exercise of the Over-Allotment Option or secondary market purchases. S

https://aphria.ca/press-releases/

Events:

1. $225 Million private placement dilution (under water 11,85-today)
2. Delays Financials to coincide with Molson August 1 release of financials- Takeover?
3. Coincidence? Bullboard Pump Rumours fly...takeover or (JV)Joint Venture
4. Coors in talks:Cannabis companies 
5. Aphria a leading top 3.
6. Vic  announces line of credit with Credit Union 25 Million 
7. (2nd time since May 9, 2017)
8. Coors partners with HEXO 
9. Aphria Loses .06 cents per share in the 4th quarter= $13,920,326.04
10. Aphria Tanks August 1 2018

Market Punishes APH and Shareholders Holding The Bag.


Aphria Inc. has secured $25-million in debt financing from WFCU Credit Union. The five-year term loan bears interest at 4.68 per cent, has a 15-year amortization and was entered into on July 27, 2018. This is the second round of debt financing secured by the company from WFCU, having previously secured a $25-million five-year loan on May 9, 2017.
https://aphria.ca/

"We are delighted to once again have the support of WFCU Credit Union as Aphria continues to execute on its long-term strategic plan," said Vic Neufeld, chief executive officer at Aphria. "Our diversified approach to innovation, strategic partnerships and global expansion are driving long-term shareholder value, and as our company and industry evolve we are always looking for opportunities to normalize our debt-to-equity structure."

Lead Underwriter 
Clarus bets $7,067,826.00 Dollars 

Fundamental Data - APH

Security Type	Equity
Shares Issued	232,005,434
Market Cap	2,670,383,000
Year High	24.75
Year Low	5.62
Annual Earnings/Share	0.20 CAD
P/E Ratio	57.55
Annual Dividend/Share	0.00 CAD
Annual Dividend Yield	0.00 %
Ex-Dividend Date
Sector	30202010 - Agricultural Products

Did you see this coming? Neither did we...but we sold yesterday .

The strong support levels are $9.63 and $8.90 see the fine print below showing those amounts.  Thats the two bottoms that could be tested, then worst case far far below is $8.10 and $6.31. 
But $8.90 seems possible before Oct 17.

Because nothing will happen leading up to Oct 17 nothing as important as the last 2 impending events they just screwed up. 

So now what? 

Sell and use the cash to look for a bottom closer to those numbers. Its going down folks...might as well buy it cheaper.

And then of course there is others like HEXO and that is another story.

BIGGEST SELLING RETAIL THE SHARES

89 Raymond James	129,002	1,390,695	10.78	152,651	1,652,290	10.824	-23,649	261,595
74 GMP	0			63,206	682,907	10.804	-63,206	682,907
13 Instinet	102,465	1,102,385	10.759	169,000	1,825,036	10.799	-66,535	722,651
33 Canaccord	97,429	1,055,599	10.835	173,705	1,888,364	10.871	-76,276	832,765
39 Merrill Lynch	184,075	1,985,688	10.787	273,561	2,945,338	10.767	-89,486	959,650
1 Anonymous	1,390,235	15,030,970	10.812	1,540,636	16,633,808	10.797	-150,401	1,602,838
53 Morgan Stanley	28,602	308,573	10.789	333,015	3,583,185	10.76	-304,413	3,274,612
79 CIBC	1,487,919	16,040,231	10.78	1,797,986	19,385,755	10.782	-310,067	3,345,524

Biggest Buyers First

House Positions for C:APH from 20180801 to 20180801

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
7 TD Sec	1,534,357	16,581,012	10.806	847,978	9,173,172	10.818	686,379	-7,407,840
2 RBC	647,716	6,984,497	10.783	486,691	5,255,943	10.799	161,025	-1,728,554
85 Scotia	521,294	5,631,525	10.803	457,570	4,943,965	10.805	63,724	-687,560
9 BMO Nesbitt	281,390	3,035,026	10.786	229,178	2,469,806	10.777	52,212	-565,220
58 Qtrade	59,414	644,959	10.855	20,825	226,208	10.862	38,589	-418,751
124 Questrade	240,202	2,601,487	10.83	208,908	2,262,532	10.83	31,294	-338,955
101 SG Capital	23,700	257,034	10.845	4,800	52,821	11.004	18,900	-204,213
22 Fidelity	45,656	491,367	10.762	30,418	329,773	10.841	15,238	-161,594
15 UBS	13,040	140,859	10.802	1,150	12,353	10.742	11,890	-128,506
59 PI	7,419	81,109	10.933	43	463	10.767	7,376	-80,646
99 Jitney	89,700	974,108	10.86	83,000	903,429	10.885	6,700	-70,679
28 BBS	58,208	628,016	10.789	52,730	571,032	10.829	5,478	-56,984
14 ITG	5,881	63,257	10.756	1,625	17,294	10.642	4,256	-45,963
94 Hampton	2,417	26,160	10.823	0			2,417	-26,160
65 Goldman	1,600	16,926	10.579	27	298	11.037	1,573	-16,628
48 Laurentian	1,470	15,768	10.727	0			1,470	-15,768
19 Desjardins	43,206	467,306	10.816	42,174	456,565	10.826	1,032	-10,741
76 Industrial Alliance	874	9,343	10.69	400	4,392	10.98	474	-4,951
56 Edward Jones	660	7,055	10.689	200	2,122	10.61	460	-4,933
70 Manulife	3,200	34,006	10.627	2,900	30,623	10.56	300	-3,383
88 Credential	2,080	22,697	10.912	3,273	35,466	10.836	-1,193	12,769
36 Latimer	2,050	22,071	10.766	3,369	36,344	10.788	-1,319	14,273
57 Interactive	2,061	22,263	10.802	3,384	36,751	10.86	-1,323	14,488
143 Pershing	19,056	205,094	10.763	20,656	223,574	10.824	-1,600	18,480
87 Beacon	0			1,700	18,530	10.90	-1,700	18,530
90 Barclays	2,000	21,906	10.953	4,400	46,928	10.665	-2,400	25,022
80 National Bank	83,816	903,897	10.784	87,602	952,038	10.868	-3,786	48,141
72 Credit Suisse	100	1,068	10.68	6,400	69,794	10.905	-6,300	68,726
89 Raymond James	120,680	1,301,961	10.789	152,622	1,651,982	10.824	-31,942	350,021
74 GMP	0			63,206	682,907	10.804	-63,206	682,907
13 Instinet	93,365	1,006,039	10.775	168,600	1,820,779	10.799	-75,235	814,740
33 Canaccord	96,229	1,042,865	10.837	172,305	1,873,496	10.873	-76,076	830,631
39 Merrill Lynch	167,646	1,811,309	10.804	267,261	2,878,360	10.77	-99,615	1,067,051
1 Anonymous	1,342,981	14,529,231	10.819	1,486,220	16,055,849	10.803	-143,239	1,526,618
53 Morgan Stanley	28,502	307,507	10.789	326,715	3,516,482	10.763	-298,213	3,208,975
79 CIBC	1,429,339	15,417,453	10.786	1,732,979	18,694,110	10.787	-303,640	3,276,657
TOTAL	6,971,309	75,306,181	10.802	6,971,309	75,306,181	10.802	0	0