Cannabis
3 posts
Long/Short equity fund Quintessential Capital issued a scathing report this morning, focused on Aphria’s international business. The three early takeaways for us are: 1) CEO Vic Neufield will likely be forced to resign or have his role at Aphria reduced. 2) International operations are essentially worth zero. This was our prior position. 3) Our prior concerns earlier this year about delays with Health Canada approvals appear to have been legitimate. Recall we raised the issue of Phase 3 expansion approvals taking longer than expected (March 12, 2018 rather than January 2018). Raising this concern with Aphria, the issue was quickly dismissed by the company as a non-issue. This report, however, […]
Aphria is in the midst of building out its largest and likely last greenhouse expansion (Part IV). Their 700,000 square-foot expansion will increase cannabis production capacity from 30,000 KG a year to 100,000 KGs when it is finished by mid-2018. Talking with insiders at the company, material technological advancements are poised to have a meaningful impact to the future operational costs and profits of Aphria. Among the changes the additions to includes: 1) The co-generation of heat and power (CHP) in the new building, 2) Power supply from the proposed Windsor-Essex upgraded grid, and potential sell back 3) Switching to LED lightning (provided […]