Aphria Inc (NYSE: APHA) is having a strong start to the trading session in the pre-market this morning, and for good reason. The company announced a licensing agreement that will result on cannabis patch technology.
As you could imagine, the news excited investors who are sending the stock into the green. Today, we’ll talk about:
- The cannabis patch licensing agreement;
- what we’re seeing from APHA stock as a result; and
- what we’ll be watching for ahead.
APHA Announces Licensing Agreement
As mentioned above, Aphria is in the green in the pre-market this morning after the company announced a licensing agreement. In a press release issued early this morning, the company said that it entered into the agreement with Manna Molecular Science.
According to the announcement, APHA will leverage Manna’s established formulations, equipment and processes. With these tools, the company intends on producing and selling patches that contain cannabis oils for both medical and adult-use brands.
As a result of the agremeent, Manna has granted the company exclusive preferred vendor status for a period of five years. The company has also been granted an exclusive license to produce, market, distribute, promote and sell Manna patches containing cannabis oil as an active ingredient.
In a statement, Jakob Ripshtein, President at APHA, had the following to offer:
As we continue to expand its use from product to ingredient, we are excited to offer innovative new ways for consumers to interact with cannabis. As a company at the forefront of cannabis innovation, Manna Molecular Science will be an important strategic partner for Aphria. Like us, they are committed to making safe, high-quality cannabis products available to a wide array of global consumers.
The above statement was followed up by Nial C. DeMena, CEO at Manna. Here’s what he had to say:
Manna is excited to be taking this monumental step with Aphria into becoming an internationally recognized brand. Aphria gives Manna the reach to distribute the Manna patch at a global level and share our principles of excellence in product design and manufacturing with the world outside the U.S.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Aphria, the news proved to be overwhelmingly positive. After all, the new licensing agreement will lead to a new product, opening the door to a new stream of revenue.
With that in mind, it’s not surprising to see that investors are excited and that the stock is in the green. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:43), APHA is trading at $9.95 per share after a gain of $0.26 per share or 2.68% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on APHA. In particular, we’re interested in following the story surrounding the company’s continued work to expand its product offering and take its share of the emerging cannabis industry. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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