Aphria Inc. (APHQF) plans for global cannabis leadership with international expansion

Aphria Inc. (“Aphria” or the “Company“) (TSX: APH and US OTC: APHQF) is proud to announce the Company’s planned expansion into Latin America and the Caribbean with the proposed acquisition of industry-leading companies in Colombia , Argentina , Jamaica and a right of first offer and refusal in respect of Brazil through a definitive share purchase agreement (the “Agreement“) with Scythian Biosciences Inc. (“Scythian“). Aphria will acquire 100% of the issued and outstanding common shares of LATAM Holdings Inc. (“LATAM Holdings“), a direct, wholly-owned subsidiary of Scythian (collectively, the “Transaction“).

Highlights of the Transaction include:

• Solidifies Aphria’s leadership position in the global cannabis industry
• Provides Aphria with world class assets in the most advanced regulatory jurisdictions across LATAM and Caribbean markets, from which it can further grow and expand its international operations
• Strengthens Aphria’s leading international management team with the addition of proven local LATAM and Caribbean executives
• Establishes Aphria’s presence in the most advanced strategic market in South America , Colombia
• Gains first mover advantage in Argentina for eventual in country cultivation
• Acquires market leadership in Jamaica with the only producing Tier 3 cultivator license in the country
• Yields strategic rights to potentially expand into Brazil , the largest population in South America
• Delivers accretive cash flow beginning in calendar 2019

Colombia – Strategic Launch Pad into South America

Colcanna S.A.S. (“Colcanna” or the “Colombian Company“), will be the first company in the Coffee Zone of Colombia with cultivation and manufacturing licenses for the production of medicinal extracts of cannabis, a research license and a license for the production and extraction of cannabis, including cannabis oil, for domestic use and for export. It is in the advanced licensing stages for a THC license.

Unlike the former Guerilla territory where other global cannabis companies have focused their investments, the Coffee Zone has always been a land of peace, high productivity and progress. Colcanna sits on 34 acres of highly fertile, predominately flat land, which is essential for the optimal cultivation of cannabis. As a result, greenhouses will occupy more than 20 acres of the property and, with 6 harvests per year and two natural sources of water for irrigation, Colcanna is expected to achieve an initial annualized production of 30,000 kg, growing to 50,000 kgs but with access to the country’s micro-scale growers, suitable for supplying the country and the region with high-quality medical cannabis.

Argentina – First Mover Advantage

ABP, S.A. (“ABP” or the “Argentinean Company“) is an established and successful pharmaceutical import and distribution company that holds a series of licenses, including for the import of CBD oil, notably the first company in Argentina to have received this license.

The Argentinean Company operates a pharmaceutical distribution warehouse and retail pharmacy and distributes to an extensive network of pharmacies, distributors, government clinics and hospitals throughout Argentina .  ABP also holds agreements with the Top 20 health insurance companies, a strategic advantage in reaching patients accessing Argentina’s free public healthcare system.

ABP is at the forefront of in-country medical cannabis research and clinical trials with two significant Medical Cannabis Cooperative Agreements. The Argentinean Company has partnered with Hospital Garrahan, a leading pediatric hospital in Buenos Aires , for a clinical study on the treatment of refractory epilepsy in children, and with Universidad Nacional De La Plata to support advances in medical cannabis research and education.