Canadian licensed producer Aphria (TSXV: APH) (OTC: APHQF) announced a C$35mm capital raise this morning, marking the largest single offering by a public company in the cannabis industry to date. The deal pushes the running total raised by Canadian licensed producers over the past thirteen months to over $313mm, a figure that doesn’t include subsequent warrant exercises:

Clarus Securities will lead a group of underwriters selling 8.75mm shares at C$4.00, with the potential exercise of an over-allotment option that would increase the deal by 1.3125mm shares, raising C$40.25mm. The deal is expected to close by 11/29 , just before the company concludes its fiscal second quarter.

Aphria ended its first quarter with over $53mm in cash and has a significant number of warrants outstanding that could bring in an additional $24mm.  With 111mm fully-diluted shares approximately, the company’s market cap exceeded $500mm at the $4.58 close on 11/10. The stock has appreciated 258% in 2016:

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email