Aphria stock (TSX:APHA) (NYSE:APHA) jumped to $8.32 CAD from $5.17 last Friday. By the close of that same day, shares settled at $6.93.
The surge came from a massive announcement that boosted the industry. Tobacco group Altria (NYSE:MO) invested $2.6 billion into Altria-rival Cronos Group (NASDAQ:CRON). The news saw cannabis shares across the sector jump up as it re-confirmed that marijuana is indeed the next biggest play.
Aphria Stock
Into this week, Aphria stock continues to perform excellently. It doesn't look like it's going to plummet any time soon either. Today it is down just shy of 2%, yet APHA stock is selling above $8 per share, and that is a healthy price.
Yesterday alone, APHA stock climbed 9.5%. Because now, investors are thinking of the possibility that Aphria might find its tobacco/drinks partner. And it is over-due.
With significant production facilities, strong relationships in both medical and recreational cannabis markets, and expansion plans, the company would make a formidable partner for any tobacco or drinks giants looking to enter the space.
Some even believed it would have been Altria's preferred target, but it was not to be.
Supply
In the meantime, however, Aphria is making sure those expansion plans are underway. It announced another supply deal earlier today. The company signed an LOI to supply a company in Paraguay with medical cannabis.
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The company in question is Insumos Medicos S.A., a pharmaceutical manufacturing, import, and distribution company.
This deal will make Paraguay Aphria's third market in Latin America. It already has supply deals in Argentina and Colombia. That sounds like good news for Aphria stock.
