(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

Senior denied insurance for lack of a smart phone

Langley woman discovers a deal requires an app

B.C. storm totals $37M in insured damages

The December storm wreaked havoc on B.C.’s south coast

Rising construction costs boost price of Langley intersection project

Bids for Township roundabout came in well over projected costs

Langley-raised catcher to play on Team Canada at Pan Am Games qualifier tournament

Kellin Deglan is headed to Brazil at the end of the month to play ball with Team Canada

Trappers back to peak form

Langley Junior B Team aims for playoffs

Trudeau says politicians shouldn’t prey on Canadians’ fears

The Prime Minister was speaking at a townhall in Ontario

Chiasson nets shootout winner as Oilers edge Canucks 3-2

Edmonton moves one point ahead of Vancouver

B.C. chief says they didn’t give up rights for gas pipeline to be built

Hereditary chief: no elected band council or Crown authority has jurisdiction over Wet’suwet’en land

Thieves steal thousands from 140 Coast Capital Savings members

Online fraud tactics included phising and ‘brute force’ in November and December

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

UPDATE: B.C. boy, aunt missing for three days

The pair are missing from Kamloops

Daredevil changes game plan to jump broken White Rock pier

Brooke Colby tells council daredevil event would help boost waterfront business

Man, two children sent to hospital after Vancouver carbon monoxide leak

Nine people were evacuated from the home in south Vancouver

Dog shot in foot with BB gun during cellphone sale at SkyTrain station

William Ayers, 28, is facing a number of charges after incident in Burnaby

Most Read