Canadian CANNAINVESTOR Magazine April 2017 - Page 57

CASE STUDY 1 – APHRIA INC

Aphria’s uplisting to the TSX was well received by many stakeholders as it joins Canopy Growth Corporation and CanniMed Therapeutics Inc (TSX:CMED; OTC:CMMDF): APHRIA-TSX

To some, Aphria has transformed into a holding company with a well-diversified asset base or portfolio. That may be a good analogy but its core business remains as a Licensed Producer and there is no separate entity for the production part of its operations at this time. That is a key distinction from holding companies such as Canopy Growth and (The) Cronus Group.

Those familiar with Dragon’s Den will recognize the name Arlene Dickinson who sits on the Board of Directors of Aphria. As an aside, this former Dragon is also on the board of Neutrisci. A key investor in Tokyo Smoke is Brett Wilson (another Dragons’ Den Emeritus). According to a January 2017 news release,

Tokyo Smoke is an award-winning lifestyle brand that brings sophistication and dsesign to the cannabis space. With immersive experiences and designer retail spaces with coffee, clothing and designer products, Tokyo Smoke is developing an international reputation as the go-to destination for luxurious, creative offerings within the industry. In collaboration with Aphria Inc. ("Aphria") (TSX VENTURE: APH) (OTCQB: APHQF), one of Canada's largest licensed producers of medical marijuana, Tokyo Smoke will release four branded cannabis strains in the first quarter of 2017.

When Aphria was a Case Study in the USA edition, it owned 100% of CannWay Pharmaceuticals and 7.2% of “Cannabis Royalties & Holding Corp. The latter is now known as CannaRoyalty Corp (CSE:CRZ; OTC:CNNRF). CannaRoyalty Corp’s IPO in December 2016 was greeted with headlines such as “CannaRoyalty offers investors a way to play Cannabis diversification” and “The cannabis company that quietly owns everything”. Subscribers to CANNAINVESTOR Magazine knew of Aphria’s strategic ownership stake nearly six months before. Including these companies, Aphria currently has the following approximate ownership stakes where known at time of writing:

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