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Wednesday March 18th, 2015

Posted at 11:47am

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Aphria Inc. will be launching a two-phase expansion of its medical marijuana growing facility in Leamington. Currently they have 22,000 square feet of production space located within a larger 450,000 square foot greenhouse facility.

Commensurate with its expansion, Aphria will be working with Health Canada to increase the amount of MMJ it is permitted to cultivate and sell under the Marihuana for Medical Purposes Regulations.

The first phase of the expansion involves the retrofit of three existing greenhouses adjacent to the Company’s current facilities. This initial expansion is budgeted to cost approximately $1 million and will nearly double Aphria’s MMJ production space to approximately 42,000 square feet, and should be complete by the end of August.

Proposals for a second larger-scale development will be presented to the Company’s board of directors at the end of the summer. As currently contemplated, the second phase will add an incremental 88,000 square feet of advanced technology greenhouse capacity and will give Aphria the ability to increase production of MMJ to approximately 7500 kilograms on an annualized basis. In total, the two-phase project is expected to cost approximately $5 million and will be funded by cash on hand.

“This industry is unfolding at a rapid pace and our growth strategy is advancing in lockstep,” commented Vic Neufeld, Chief Executive Officer of Aphria. “We believe that in order to meet anticipated demand in the near to mid-term, it is prudent to commence the expansion of our production facility immediately in order to ensure continuous supply. Our patient users are used to getting product when they need it and without waiting.”

Neufeld continued, “While the majority of other licensed producers of MMJ in Canada are focused solely on retail, we have the ability to pursue both a retail and wholesale growth strategy. Not only does management have extensive experience in retail pharma, Aphria’s team has been growing plants in greenhouses on a large commercial scale for nearly sixty years.”

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