Cannabis company Aphria CEO says it may buy additional consumer brands

Irwin Simon, the CEO of Canadian hashish company Aphria, is in search of additional alternatives to amass brands within the consumer merchandise area, hoping to develop past hashish.

“There’s many opportunities in the U.S. right now with food and drink and other consumer products, and I know about how to build consumer brands and parlay that into cannabis once legalization happens,” Simon stated in an interview on CNBC’s “Closing Bell” Monday.

Simon beforehand based the consumer merchandise company Hain Celestial Group, which focuses on pure and natural meals, drinks and private care objects. He stayed with the company for over 25 years, appearing as its CEO and chairman.

“Not knowing when [cannabis] legalization happens in the U.S., I want to continue to acquire certain businesses like a Sweetwater, like a Manitoba Harvest, that can parlay in the cannabis world once legalization happens with great margins, great growth and great distribution for us,” stated Simon.

The company acquired Sweetwater, an unbiased craft brewer within the U.S., in November. A month later, Aphria introduced its merger plans with one other Canadian hashish company, Tilray, together with its hemp consumer product model Manitoba Harvest, to type the largest cannabis company by revenue.

The company’s inventory closed down 14% to $13.95 on Monday, after the company reported that coronavirus lockdowns in components of Canada and Germany damage gross sales of its merchandise in its fiscal third quarter. Revenue tumbled from the second quarter to the third quarter, however was larger on a year-over-year foundation.

For the three months ended Feb. 28, Aphria reported a internet lack of $361 million Canadian {dollars} on income of $153.6 million Canadian {dollars}.

“In the U.S., we had a solid first full quarter of contribution from Sweetwater even with lower on-premise sales compared to the prior year quarter as many foodservice industry establishments were still operating with limited capacity,” stated Simon in a press launch.

Aphria shareholders are scheduled to vote on the Tilray deal on Wednesday. Tilray shares closed Monday at $17.19, down 13%.

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