The Financial Post reports in its Friday edition that cannabis companies rallied on Thursday, reversing a slump the day before, on renewed optimism over the lifting of restrictions on marijuana sales in five states this week. A Bloomberg dispatch to the Post says that stocks soared in the afternoon session after New York State Governor Andrew Cuomo told a local radio station that New York would look to legalize recreational pot next year. The nation's fourth most populous state was on track to legalize this year before Mr. Cuomo scuttled plans in March. Aurora, Tilray and Aphria led the advance, with double-digit gains. The gains followed ballot passages in Arizona, Mississippi, Montana, New Jersey and South Dakota, which will now add to the 44 states that allow marijuana for medical or recreational purposes. Boris Jordan at Curaleaf said the state passages were a "green landslide." Despite growing support for cannabis in the United States, federal legislation for legalized pot may be off the table for now, particularly with the possibility of Republicans retaining control of the U.S. Senate. However, Senate majority leader Mitch McConnell's statement in support of a stimulus bill was more good news for the industry.
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Aphria Inc (C:APHA)
Shares Issued 288,739,844
Last Close 11/5/2020 $7.13
Friday November 6 2020 - In the News
The Financial Post reports in its Friday edition that Aphria agreed to buy Sweetwater Brewing Co. for $300-million, giving the Ontario-based company a toehold in the U.S. market (all figures U.S.). A Bloomberg dispatch to the Post says that it is the first major deal in the cannabis industry involving craft beer. Chief executive officer Irwin Simon told Bloomberg that the deal will give Aphria a recognizable brand in the U.S. and help it launch a line of THC beverages in Canada. Sweetwater, based in Atlanta, makes 420 Extra Pale Ale and other 420-branded drinks that emulate the flavour of cannabis strains. Founded in 1997, the company has distribution in 27 states plus Washington. The deal is $250-million in cash and $50-million in stock. The field of beverage-cannabis crossover deals has largely been dominated by big alcohol companies, like Anheuser Busch InBev's partnership with Tilray, and Constellation Brands' share of Canopy Growth. Aphria's transaction reverses the structure of such deals, in which a big alcoholic beverage company invested in a Canadian cannabis company. "I think legalization will happen in some way or the other, and now Aphria has a foothold," Mr. Simon told Bloomberg by phone.
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