Aphria Scythian Biosciences partnership: Amid a sea of competition in the Canadian cannabis industry, Aphria has managed to secure a competitive edge. Revealed today, Aphria's edge up against rivals involves a partnership with Scythian Biosciences, a renowned international cannabis company.
It's not to say that there aren't Canadian cannabis companies that have something on Aphria—because there are; specifically, Aurora Cannabis (TSX:ACB). But, if Aphria manages to continue what it's doing, I would say Aphria isn't far away from reaching a status similar to Aurora's.
Aphria Expands to Latin America and Jamaica
On Tuesday, Scythian Biosciences Corp. revealed that it has moved into a strategic deal with Aphria Inc., which resides in Leamington, Ontario.
Under the terms of the deal, Aphria will be acquiring Scythian's Caribbean and Latin American assets.
For both cannabis companies, this is noteworthy news. Speaking for Scythian Biosciences, the company will be exiting their "Latin American and Caribbean assets to one of the world's leading operators."
As for Aphria, it means the Ontario-based company is moving into international markets.
Aphria Scythian Biosciences Partnership: Details
Here's what we know:
- Aphria will indirectly acquire 100% of Marigold Acquisitions, 100% of ABP, S.A., and 90% of Colombia-based medical cannabis producer Colcanna S.A.S.
- Aphria will issue $193M in shares to Scythian Biosciences.
- Scythian believes that Aphria's strong foundation makes it the perfect company to build on the framework that it has established in the Caribbean and Latin American markets.
Market Reactions
So, both companies are set to benefit from the Aphria Scythian partnership, but what about investors? Will they, too, see positives come out of Aphria moving into international markets?
Definitely. But it looks like investors are a bit slow on clueing in on this.
According to Google Finance, at 2:54 p.m. EDT, Aphria Inc. (TSX:APH) was trading at $10.52 on the Toronto Stock Exchange, which means the stock was down 3.49% at the time.
Things are looking a bit worse for Scythian Biosciences (TSXV:SCYB). At closing time, the international cannabis company was trading at $3.94, which puts the stock down 14.72%.
The Takeaway
What do you think of Aphria expanding into Latin America and Jamaica?
>> Can Cannabis Cure Your Cigarette Cravings?
Featured Image: Depositphotos/© pressmaster
