Aphria (NASDAQ:APHA) is seeing an increase to APHA stock on Monday after announcing the completion of its deal to acquire SweetWater Brewing. The deal was previously announced by the company earlier this month.
Following news that the deal is complete, APHA stock has been seeing heavy trading. This has resulted in some 14 million shares of the stock changing hands this morning. That’s higher than its average daily trading volume of 8.14 million shares.
Here’s what investors need to know about Aphria’s acquisition of SweetWater Brewing.
- Starting off, APHA makes sure to mention that the acquisition is accretive to its business.
- SweetWater Brewing is a craft brewer based in the U.S. with a focus on the cannabis lifestyle via its flagship 420 brand.
- That’s important to Aphria as the company’s main business is the production of marijuana.
- The Canadian company notes that the acquisition of SweetWater Brewing gives it a strong entry point into the U.S.
- It expects this to help expand its business in the country through the use of distribution channels already established by SweetWater Brewing.
- The deal saw Aphria acquire SweetWater Brewing with a mix of cash and stock.
- This saw it offering a total of $250 million in cash and $50 million in APHA stock to investors in SweetWater Brewing.
- Aphria notes that the cash for the deal comes from what it had available on hand.
APHA stock was up 5% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.