Canadian cannabis company Aphria Inc (OTC: APHQF) said Tuesday it struck a $193-million deal to acquire all of the issued and outstanding common shares of Latam Holdings, a subsidiary of Scythian Biosciences with licenses and other rights and assets held across Argentina, Colombia, Jamaica and Brazil.
Aphria named the following as notable takeaways from the transaction:
- Gaining “world-class” assets in some of the most advanced regulatory jurisdictions across Latin American and Caribbean markets, and adding Latin American and Caribbean executives with local knowledge.
- A first-mover advantage in Argentina for eventual cultivation.
- Market leadership in Jamaica with the only Tier 3 cultivator license in the country.
- Rights to expand in Brazil, the largest South American market.
Why It’s Important
“We have spent a considerable amount of time and resources evaluating opportunities in Latin America and the Caribbean and we are confident in the long-term strategic opportunity and the value it will bring to our shareholders,” Aphria CEO Vic Neufeld said in a statement.
Once completed, the transaction will put Aphria at the center of the medical cannabis industry in Latin America and serve as the foundation for significant future growth as more cannabis markets evolve over time, the company said.
The transaction is expected to close by Sept. 30; if the deal is terminated before then, Aphria said it’s entitled to a break-up fee of $5.8 million.
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