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Cannabis firm Aphria signs deal for $100M investment from institutional investor

LEAMINGTON, Ont. - Aphria Inc. says it has signed a deal with an unidentified institutional investor who has agreed to invest $100 million in the cannabis company.
 
The investor will acquire roughly 14 million units of the company at a price of $7.12 per unit.
 
Each unit will include one Aphria share and one-half of a share purchase warrant.
 
Each whole warrant will entitle the investor to acquire one Aphria share at a price of $9.26 for a period of 24 months from the closing date of the offering.
 
Aphria says it plans to use the net proceeds from the offering to finance international expansion, working capital and general corporate purposes.
 
The announcement comes more than a week after the Leamington, Ont.-based cannabis company slashed its outlook due to delays in opening additional Ontario cannabis stores and a ban on vape products in Alberta.
 
Aphria said on Jan. 14 that it now expects net revenue for its 2020 financial year to be between $575 million and $625 million.
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