• Daily Marijuana Observer Facebook
  • Daily Marijuana Observer Twitter
  • Daily Marijuana Observer StockTwits
  • Daily Marijuana Observer SA
  • Daily Marijuana Observer Instagram
  • Daily Marijuana Observer Youtube
  • Pinterest Social Icon
  • Daily Marijuana Observer Talk Market

Aphria Invests in Licensed Dealer and Developer of Cannabinoid Drugs

August 15, 2017


This morning, Aphria Inc. (TSX:APH)(OTC:APHQF)(FRA:10E) announced that the company has invested $11.5 million in Scientus Pharma, a Canadian licensed dealer, late stage ACMPR applicant, and vertically-integrated developer of cannabinoid biopharmaceuticals. This isn't Aphria's first deal with Scientus, in July, Aphria entered into a cannabis supply agreement with the company. 


Related: Aphria Enters Into Strategic Partnership With Int'l Cannabis Company, Nuuvera


About Scientus Pharma


As previously mentioned, Scientus Pharma is a Canadian licensed dealer, late stage ACMPR applicant and vertically-integrated developer of cannabinoid biopharmaceuticals. As a quick refresher, Canadian licensed dealers are permitted to conduct activities with cannabis under the Narcotic Control Regulations. The 'activities' these licensed dealers conduct are quite broad, but primarily fit into two categories; testing and research. Scientus Pharma's current activities are research-focused, although the company's dealers license enables them to buy, process and sell cannabis derivatives both to and from licensed producers as well as internationally.  Scientus has developed a proprietary, patent pending method of cannabis extraction that is cost effective, resource efficient and results in a consistent, pharmaceutical grade extract. On the biopharmaceutical side, the company's current research efforts focus on cannabinoid treatments for central nervous system disorders including neuropathic pain and epilepsy.


Terms of the Investment 


Aphria is investing in Scientus Pharma by way of a two year, senior, secured convertible debenture that carries an 8% interest rate. Simply put, this means Aphria lent $11.5 million to Scientus Pharma for two years at 8% per year. Aphria also has the option to convert the loan into common shares of Scientus Pharma at a rate of $2.75 a share, giving them exposure to growth of the company. Also, if something were to go seriously wrong at Scientus causing them to default on the loan, Aphria has some degree of protection. The 'senior' part means that Aphria would be one of the first creditors to be paid in the event of bankruptcy, and the 'secured' aspect means that Aphria has the first charge on all of the current and future assets, giving them even more protection in the unlikely event of a default. 


Management Commentary


Aphria's CEO, Vic Neufeld


"We are excited to enhance our relationship with industry leader Scientus Pharma. "Their proposed pipeline of new and innovative products represent a major step forward for cannabinoid based medical products in Canada.  Gaining access to their dealer's license provides Aphria immediate access in the short-term to enhanced global opportunities."


Scientus Pharma's CEO, Trevor Folk


"We are excited to welcome Aphria as a strategic investor. Coming on the heels of the two companies completing a major wholesale supply agreement in June, this sizable investment serves to validate the Scientus Pharma business model to be the leader in extractions, formulations and provider of best of breed derivative medical cannabinoid based products.  It also significantly expands our existing partnership, allowing Scientus Pharma to complete implementation of its patent pending commercial scale microwave extraction platform, an important step toward creating an active pharmaceutical ingredient that can be subsequently formulated into a range of effective dosing forms, and to execute the commercial launch of its first differentiated product."


Market Reaction 


In midday trading Tuesday, markets are shrugging off this announcement. Shares of Aphria are gaining roughly 0.5% on the TSX and roughly a quarter of one percent on the OTC Markets




Learn more about Aphria Inc. by checking out the company's marijuana stock profile in our Canadian L.P. database. To view more marijuana stocks, check out our main marijuana stock database. Be sure to subscribe to our Canadian L.P. newsletter, so you never miss an important update from one of Canada's 52 LPs. Don't forget to connect with The Daily Marijuana Observer on FacebookTwitterStockTwits, and Instagram.




Investing in nanocap, microcap, and small cap stocks is highly speculative. The publishers of DailyMarijuanaObserver.com are not registered as Investment Advisors or Broker-Dealers in any jurisdiction whatsoever. The information contained on DailyMarijuanaObserver.com (“this site”) has been prepared solely for informational purposes. Nothing on the site is an offer or solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities mentioned from their financial advisor.

Please reload

Please reload

Please reload


© Copyright 2016-2020 Smoke Show Ventures, Inc.

RSS Feed

Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.