Today, Aphria (NYSE:APHA) announced that its Malta-based subsidiary, ASG Pharma, has received EU GMP (European Union Good Manufacturing Practices) certification to produce cannabis for medical and research purposes. The MMA (Malta Medicines Authority) granted the certification. In 2018, ASG Pharma received a license from MMA to import medical cannabis for analytical testing and research. Since then, the company has upgraded its facility. So, the new certification would enable Aphria to deliver finished dried flower and finished oil to European countries where it’s legal.
Speaking about receiving the certification, Aphria CEO Irwin D. Simon said, “We are pleased to receive EU GMP certification for ASG in Malta, our third facility to achieve this milestone, which really speaks to the Company’s commitment to quality. We remain excited about growth opportunities as this increases our ability to serve, and further strengthens Aphria’s leadership, in the European Union.”
Meanwhile, Aphria also announced that it liquidated the Promissory Note from GA Opportunities, which yielded the company net proceeds of approximately 26 million Canadian dollars. The liquidation could strengthen the company’s balance sheet, which had 515.1 million in cash and cash equivalents at the end of the last quarter.
Aphria is trading in the green
Aphria was looking to expand its operations in Germany. The company allocated 30 million Canadian dollars. So, the announcement of receiving EU GMP certification appears to have increased investors’ confidence. Today, the company was trading 1.9% higher in the pre-market trading hours. So far this year, Aphria has fallen by 25.1% as of May 5. However, the company has underperformed the ETFMG Alternative Harvest ETF (NYSE:MJ). MJ has fallen by 31.0% this year. Meanwhile, Cronos Group (NASDAQ:CRON), Hexo (TSE:HEXO), and Canopy Growth (NYSE:CGC) have fallen by 18.7%, 65.2%, and 18.8%, respectively.
Despite the decline in Aphria’s stock price, I’m bullish on the stock. Recently, the company reported a better-than-expected third-quarter performance. The company wants to expand its portfolio by introducing edibles, beverages, and topical products. The company is also expanding its production capacity by operating its Aphria One and Aphria Diamond at their full capacity. To learn more, read Why Analysts Had Mixed Reactions to Aphria’s Q3 Earnings.
Today, Innovative Industrial Properties will likely report its first-quarter performance after the market closes. Read Should You Buy IIPR before Its Q1 Earnings? to learn more.