APHA stock has started off strong this week. This morning, Aphria Inc (TSX:APHA) (NYSE:APHA) announced that Health Canada approved its Aphria One location expansion.
APHA Stock Rebounds with Expansion
Health Canada granting Aphria Inc approval for the Aphria One expansion is exciting news, so it's little wonder that APHA is taking off. The cannabis company will now be able to add an additional 800,000 square feet of greenhouse space for cultivation and processing. This additional space is all a part of the company's completed Aphria One Part IV and Part V expansions.
Aphria One is the company's corporate headquarters located in Leamington, Ontario. At this time, Aphria holds operations in 11 different cities across the globe. With the company's new approval from Health Canada, Aphria will be able to boost its cannabis production capacity to 110,000 kg and 115,000 kg annually for all its facilities. The leap in production capacity is likely the cause for the spike in APHA stock this morning.
>> Isodiol Q3 Results Show Revenue is Up, But Hemp Stock Reacts Poorly
The Part IV and Part V expansion will also include "industry-leading automation" to the company's practices. Aphria states that the critical phases of production like initial cuttings, pruning, and trimming mature plants will be performed by hand. However, it will automate a number of key steps to speed up the process. These steps include:
- Drying and Curing
- De-budding and rough trimming
- Transporting plants through harvest
- Transplanting cuttings
- Waste Disposal
Aphria's interim CEO, Irwin D. Simon, said the company plans to move on the expansion by this Friday, trying to establish nearly 22,000 plants in the newest expansion. After the 22,000 is reached, Aphria plans on adding an additional 12,000 plants weekly until it reaches full crop rotation. With the new expansion, Aphria will be able to triple its annual production capacity.
APHA Stock Movement
At the time of writing, APHA is currently trading at $10.50 a share on the NYSE, up +$0.36 (+3.55%). On the TSX, APHA stock is trading at $13.82 a share, up +0.34 (+2.52%).
Featured Image: Canva
