- Aphria eyes European markets for its recreational cannabis products.
- Aphria stock value (TSX: APHA) grew by around 160 per cent year-to-date.
- Its German facility to start harvesting cannabis in the first quarter of 2021.
- Aphria merged with Tilray last year to create the world’s largest pot firm.
Canadian cannabis goods company Aphria Inc. (TSX: APHA) has seen an exponential run on the Toronto Stock Exchange (TSX) over the past few weeks, as it continues to consolidate and expand to new markets.
Aphria stocks (TSX: APHA) surged by more than 13 per cent to C$24.16 by market close on Monday, February 8, extending their previous week’s gains in the early trade.
Aphria’s outstanding performance has drawn investors to the stock in droves, evidenced by the colossal 11.12 million shares traded on Monday.
Its stock value rose by around 160 percent year-to-date.
The stocks’ 10-day and 30-day volume average was 7.1 million and 6.4 million shares. Aphria has a market cap of more than 7.5 billion.
@Kalkine Image 2021
Aphria (TSX:APHA) Stock
This Ontario-headquartered company specializes in recreational packaged cannabis products whose demands have skyrocketed in recent times internationally. Aphria Inc. runs its business operations in the US, Europe, and Latin America, besides Canada.
In the last five days, APHA stock has advanced by 28 per cent, while its three-month and one-year growth figures were some 237 per cent and 330 per cent, respectively.
In a major announcement on Monday, the company said it will soon start production in its facility in Germany’s Neumünster region after an EU-GMP certification. It is the company’s first foray into the European market.
If approved, Aphria would become the first foreign licensed producer in Germany to grow medical cannabis. It hopes to start its first harvest from Neumünster in the first quarter of 2021, the company said in a statement.
Aphria plans to ramp up production at its German facility, which will eventually act as a major global supply hub for the packaged cannabis products. Additionally, it will set up a large distribution network across Europe that will also connect North America, it said.
Furthermore, Aphria has merged with Canadian firm Tilray Inc ((NASDAQ: TLRY) last year to form the world’s largest cannabis company valued at around C$4.8 billion.
The company now plans to increase its footprints in countries like Portugal in collaboration with Tilray, which runs an extensive medical cannabis operation in the continent, including Germany.
Should You Buy Aphria Stock?
President Joe Biden has recently favored revoking a federal ban on marijuana, even though some US states have already allowed its use for medicinal purposes. Pot companies like Aphria stand to gain significantly if the federal law is changed.
Mexico is also on course to legalize pot, which would create the world biggest cannabis market. Rumors of other nations such as Israel and France moving towards legalization has also emerged.
Many countries already allow the use of medical cannabis, and more may follow suit.
Under these favorable market circumstances, Aphria stock is likely to jump higher and touch new heights.
Nonetheless, investors should pursue their own enhanced research before making any investment decisions.