Aphria stock has been consolidating over the past few weeks following a 30% fall in mid-April.
Deal with PAX Labs
Aphria Inc (TSX:APHA) (NYSE:APHA) has been one of the better-known companies in the medical marijuana industry for quite some time, and although APHA stock did not have a great time in 2019 so far, the company received a major boost on Friday. Last week, four medical marijuana companies in Canada signed partnership deals PAX Labs, a San Francisco-based company that is going to produce cannabis-based vaping products.
Aphria was among the four companies that signed up with the American company and as soon as the news was announced, APHA stock surge on Friday. Despite the impressive climb on Friday, the stock’s performance has not been great this year so far and hence, the partnership deal with PAX is such an important deal for the company.
It might be pointed out that Aphria stock is up by as much as 20% this year through Wednesday, but at the same time, the price of the stock is down by as much as 21% from the levels it had reached in 2018.
However, it is also necessary to point out that the company had been embroiled in a controversy when two separate short sellers alleged that Aphria’s management had paid over the odds for an acquisition. It was also alleged that the company’s top management had financial interests in the company that was being acquired. However, the controversy eventually blew over as an independent inquiry showed that the amount paid was not over the odds.
Aphria’s CEO at the time had to step down, though, and that particular issue has beaten down Aphria stock for some time.
Aphria is going to supply PAX with premium cannabis extracts that are going to be used in the device known as PAX Era. However, those devices are yet to be legalized in Canada.
What do you think of Aphria stock after the recent price movement?
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