Aphria Inc (NYSE:APHA) made its debut on the New York Stock Exchange (NYSE) just ten days ago. Since then, the stock has been up and down on the market, showing a very inconsistent pattern. Today, the cannabis stock remains in the red, but will it rebound soon after the company's recent announcement? Let's see!
Aphria Expands to Germany
Aphria Inc. is a Canadian cannabis company that is headquartered in Leamington, Ontario. It produces and sells medicinal cannabis in Canada and internationally. Last Thursday, November 8th, the cannabis company made the big announcement that is would be acquiring CC Pharma.
CC Pharma is a leading distributor of pharmaceutical products in Germany. Currently, the company works with 13,000 pharmacies across the European country. When this acquisition is completed, Aphria will strengthen its end-to-end medical cannabis operations in Germany. The company sees it as a key market in its international expansion. The transaction is expected to close in January of 2019.
"This acquisition strengthens our foothold in Germany, one of the most highly sought-after medical cannabis markets in the world," said Vic Neufeld, CEO of Aphria. "CC Pharma is cash-flow positive and has significant experience with regulatory requirements and international logistics. It will be a strong addition to Aphria's presence in Germany, providing deeper access to the important pharmacist channel and advancing our ambitious global growth strategy."
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Aphria currently has a wholly-owned subsidiary named Aphria Deutschland or 'Aphria Germany.' Earlier in the year, its German subsidiary acquired a large stake in the Berlin-based Schoneberg Hospital. This transaction provides both patients and doctors support and education on the benefits of medical cannabinoids. This was also its first step in building and operating pain treatment centers across Germany.
The CC Pharma deal will extend the cannabis company's already large presence in Germany.
APHA Stock Movement
According to Yahoo Finance, APHA is currently trading at $10.58 a share, down -$0.70 (-6.21%). It remains unknown at this time why the stock has dropped considering its latest positive announcement.
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