Canada’s cannabis billionaire’s club added another member this week as Aphria Inc. (TSX:APH) shares jumped 16 percent to push the company’s market cap to over $2 billion. As trading closed on Tuesday, the company hit $13.53 per share. Aphria joins a select group of cannabis heavyweights, becoming the third stock to value at over $2 billion behind Canopy Growth Corp. (TSX:WEED), valued at $3.6 billion, and Aurora Cannabis (TSX:ACB), valued at $3 billion.
News of Aphria’s exclusivity deal with retail pharmacy chain Shoppers Drug Mart fueled the recent price spike. The company will supply the pharmacy chain with dried bud and oils for sale to patients via an online portal. Finalization of the deal is contingent on Shoppers Drug Mart receiving licensure from Health Canada. Analysts consider the deal, “a watershed moment for the industry.”
Investors are upbeat over the expected legalization of marijuana in Canada come July 2018. Aphria Inc. stock has more than doubled since the middle of October, with analysts raising the 12-month target price to a bit over $13 per share. Nearly all analysts rate the stock as a “buy.” Some are comparing the Shoppers Drug Mart deal to when Constellation Brands Inc. acquired a stake in Canopy Growth.
It is “a major milestone for Aphria and for the sector at large,” said one analyst.
TSX Defers Consideration of CanniMed
Why do today what you can put off until tomorrow… CanniMed Therapeutics Inc. (TSX:CMED) announced on Tuesday that the Toronto Stock Exchange (TSX) intends to defer consideration of CanniMed’s shareholder rights plan. TSX will do so as per similar practices and until satisfaction of non-intervention by the Ontario Securities Commission pursuant to National Policy 62-202 – Take-Over Bids – Defensive Tactics, as well as ratification of the plan by shareholders on May 28, 2018. Until then, the plan