(Pixabay Photo) Ontario licensed marijuana producer Aphria has reached an agreement to acquire Ladysmith-based Broken Coast Cannabis in a deal worth $230-million. (Pixabay Photo)

Vancouver Island marijuana producer bought by Aphria in $230M deal

Aphria’s annual production forecast increases to 230,000 kgs

Ontario licensed marijuana producer Aphria has reached an agreement to acquire Ladysmith-based Broken Coast Cannabis in a deal worth $230-million.

“Broken Coast is committed to providing a premium and affordable product to its patient base while staying true to BC’s iconic cannabis brand and culture,” said Roberto Bresciani, director and co-founder of Broken Coast.

“Joining the Aphria team will open doors to keep innovating with our unique production process and cannabis genetics.”

All three co-founders will stay on with the company, which has amassed over 10,000 registered patients since being founded in 2013. Broken Coast will be paid $10 million in cash and the remainder will be in Aphria shares.

While the exact whereabouts of the Vancouver Island company’s 26,000 sq ft facility on a 4.5-acre parcel of land are unclear, Broken Coast’s address is listed as being in Ladysmith. An ongoing expansion will bring the size of the facility up to 44,000 sq ft.

Aphria in turn operates a low cost and scaled greenhouse platform in Leamington, Ont., a municipality on Lake Erie about an hour from the Windsor-Detroit border.

“While we are joining a talented large-scale greenhouse operator, Broken Coast will retain a high level of independence and our existing management and production teams will continue to drive our corporate strategy and produce incredible cannabis products,” Bresciani added.

Acquiring Broken Coast is also expected to add incremental annual production of 10,500 kgs, some of which is already market ready, bringing Aphria’s annual production forecast to 230,000 kgs. Aphria now becomes Canada’s largest Earning Before Interest, Taxes, Depreciation and Amoritization (EBITDA) licensed grower.

“Adding one of Canada’s most sought after premium brands represents a major triumph for Aphria and our shareholders and firmly establishes our position as a Canadian leader in premium indoor cannabis production,” said Vic Neufeld, Chief Executive Officer of Aphria.

“Broken Coast has proven that you can grow premium quality cannabis, charge a reasonable price and earn a profit all at the same time. Our two companies are closely aligned, particularly as it relates to our relentless focus on production costs and profitability.We look forward to learning from each other and bringing more Broken Coast cannabis to current medical patients and future adult recreational use consumers in Canada.”

Part of the deal also involves Aphria’s approval to immediately commence a $20-million Phase IV expansion at Broken Coast’s facility, adding another 4,500 kgs per year in production.

Construction is anticipated to be complete by late summer of 2018 with product coming to market early in the new year.

The deal remains subject to certain conditions and could close by Jan. 31, 2018.

Just Posted

Chilliwack firefighters douse Yarrow shed fire

No one injured in the Tuesday afternoon blaze

Chilliwack gymnast to compete in Pan American Championships

Canadian national teamer Zachary Clay travels to Peru in September for international competition.

Harv Westeringh announces run for Chilliwack council

The local realtor/builder has strong interest in municipal issues and fiscal responsibility

Night patrol on Chilliwack waters leads DFO to seize 48 sockeye and harbour seal from poachers

Charges pending after two poachers arrested for fishing at night

Highway 7 down to one-lane alternating as crews fight Mt. Hicks wildfire

150-hectare blaze prompted closure of a provincial park

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

RCMP to search for body after man drowns in B.C.’s Buntzen Lake

Officers and fire crews responded but the man from the Lower Mainland is believed to have drowned.

Police chiefs call for stricter controls on pill presses to fight opioids

Canada’s police chiefs are urging Ottawa to beef up its fight against the opioid scourge by closely vetting people who import pill presses

Hot, dry conditions forces drought rating to highest level on Vancouver Island

The province says Vancouver Island is under Stage 4 drought conditions

Victoria police say explicit calls continue to target women

Over 50 reports of unwanted, sexually explicit calls have come in

‘It’s like a party in your mouth’

B.C. creator’s Milkshake Burger makes its debut at the PNE

Get involved in the Great Canadian Bumble Bee Count

Environmental organization develops app to help with the nationwide count

Pesticides linked to bee deaths will be phased out in Canada, sources say

Neonicotinoids, or neonics, are a class of pesticides used by farmers and hobby gardeners alike

Most Read