Aphria Inc (NYSE:APHA), the Canadian cannabis company, is set to expand its cultivation operations in Argentina to the province of Jujuy after signing a letter of intent with the Argentinian state-owned Cannabis Avatãra Sociedad del Estado (CANNAVA) that strikes a cooperation agreement there.
Under the deal’s terms, Aphria’s subsidiary ABP will establish a facility in Jujuy for the cultivation and processing of cannabis as well as for the manufacturing of cannabis derivative products, including cannabis oil.
The details of the financial terms haven’t been disclosed.
"Aphria is strategically positioned to be among the first companies to produce locally, and eventually commercialize its products in Argentina at much lower cost," said Gabriel Meneses, vice-president for Latin America and Caribbean with Aphria. "We are proud of the relationship we have built with the Province of Jujuy after months of discussions and planning, and thankful for their support."
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CANNAVA was established by the Argentine government to advance the cultivation and industrialization of cannabis sativa for medical and scientific use.
As the legislation in Argentina evolves, Aphria will be in a position to scale its production in Jujuy and offer greater access there to medicinal cannabis.
Aphria shares popped by 3.7% to hit $5.60 before the opening bell on Thursday.
Contact Ellen Kelleher at [email protected]