Perennial (DCM) and Aphria (APHQF) Sign LOI to Establish Joint Venture

Perennial Inc. (“Perennial”), a subsidiary of DATA Communications Management Corp. (DCM.TO) (“DCM”), and Aphria Inc. (TSX:APH and US OTC:APHQF) (“Aphria”) are pleased to announce they have signed a Letter of Intent to form a joint venture (the “JV”) to collaborate on the development of new products, brands and product categories that will drive the evolution of the Canadian adult-use cannabis market. It is expected that a definitive agreement formalizing the joint venture will be finalized within the coming weeks.

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The JV will be powered by Aphria’s best-in-class cannabis production and Perennial’s industry-leading expertise in strategic brand development. The two companies share a cultural commitment to relentless innovation. This proposed collaboration will focus on developing industry-leading product innovations and brands that cater to the needs and wants of targeted adult-use consumer segments. As the cannabis industry expands into new and highly-anticipated product categories, Perennial and Aphria believe that a committed, consumer-centric approach will enable the JV to remain on the leading edge of the cannabis industry.

“Winning brands are built from the ground up, and we are excited by the opportunity to join forces with Aphria,” said Chris Lund, Chief Innovation Officer of Perennial. “Aphria shares Perennial’s vision of creating research-based, consumer-centric brands that are right for the Canadian marketplace.”

“Perennial has been providing strategic counsel and consumer-driven brand development to some of the world’s biggest brands for over 25 years,” said DCM’s President and Chief Executive Officer, Greg Cochrane. “With ventures like this one, DCM is able to realize the full potential of having Perennial as part of the DCM team. This structure enables DCM to pursue promising new opportunities, while preserving the integrity of the industry-leading solutions DCM currently provides to many of Canada’s top cannabis producers in a conflict-free manner. We look forward to the opportunity to further unlock and realize the value of DCM’s recent acquisition of Perennial.”

Aphria will collaborate with Perennial in creating highly differentiated, market-disrupting brands and products that deliver adult consumers a unique and targeted cannabis experience. “We are incredibly focused on developing the innovative products of tomorrow that will revolutionize the way adult consumers integrate cannabis into their lives,” said Jakob Ripshtein, Chief Commercial Officer of Aphria. “We’re already moving the needle on what the cannabis industry is going to look like, not just one year from now, but in five or ten years. We will continue to invest in ventures like this one with Perennial that will enable us to collaborate with a range of strategic partners to bring powerful innovations to the adult-use cannabis market.”

“Aphria has developed a portfolio of thoughtfully researched and crafted adult-use brands that we are confident will resonate with consumers out of the gate come October 17,” said Megan McCrae, Vice President of Marketing at Aphria. “Collaborating with Perennial, one of the best brand houses in North America, will ensure we continue to lead the consumer experience as the industry evolves and we expand our portfolio to include a range of cannabis-infused products.”

“Aphria is not standing still as the opening bell for adult-use cannabis approaches,” said Vic Neufeld, Chief Executive Officer of Aphria. “We are rapidly advancing our strategic innovation plans on multiple fronts, including with this JV and our recently announced Extraction Centre of Excellence. Aphria has the infrastructure, know-how and capacity to deliver on adult-use market commitments in year one and beyond, and we’re using that foundation to ensure we’re leading the evolution of the adult-use cannabis industry in the years to come.”

About Perennial Inc., a DCM Company

For more than 25 years, Perennial has been the trusted partner for many of North America’s top brands in retail, financial services, and consumer packaged goods. Perennial has provided business strategy, brand strategy, consumer insights, and design to leading brands like Royal Bank of Canada, Loblaw Companies Limited, McKesson Canada, Coca-Cola, and The Home Depot Canada. Through innovative thinking, clever storytelling, and strategic solutions, Perennial drives clients’ sales today while building their brands for tomorrow.