Bullish options flow was detected in APHA stock on Friday, December 13, 2019.

Bullish options flow detected in APHA stock on December 13, 2019. Notice the call options kept being bought as the spot price continued to rise.

11,674 calls trading, 6x expected, and implied vol increasing almost 6 points to 77.07%. Apr-20 6 calls and Apr-20 7.5 calls are the most active options, with total volume in those strikes near 6,400 contracts.

On December 2, 2019, Aphria (TSX: APHA and NYSE: APHA) announced that its subsidiary Aphria Diamond secured a credit facility, on November 29 2019, with a major Canadian chartered bank as sole arranger, sole book runner and administrative agent on behalf of a group of lenders for a committed senior secured credit facility of $80 million.

“Aphria has the largest cash balance in the cannabis industry without the dilution of a strategic partner,” said Irwin D. Simon. “We are pleased to have secured a term loan that will repatriate a portion of our investment in Aphria Diamond, to be strategically deployed by Aphria. This loan strengthens our balance sheet without being dilutive, and positions Aphria Diamond for success as we expand into new categories and growth opportunities in cannabis to enhance value for shareholders long term.”

Since securing its Health Canada license on November 1, 2019, Aphria Diamond is quickly coming on scale. Aphria Diamond will be 70 per cent planted by mid-week, with 350,000 young seedlings planted. With the level of automation and scale of the facility, the Company anticipates Aphria Diamond to have one of the lowest cost structures in the industry. Aphria expects the dried flower production from the first harvest to be sold to provincial control boards sometime in March 2020.

On November 20, 2019, most marijuana-related companies surged after the Marijuana Opportunity Reinvestment and Expungement, or MORE, Act was approved by the House Judiciary Committee. The Marijuana Opportunity Reinvestment and Expungement act would remove marijuana from the list of controlled substances in the U.S., expunge certain cannabis offenses, and reinvest in communities impacted by the War on Drugs.

“The MORE Act is one of the most comprehensive marijuana reform bills ever introduced in the U.S. Congress. The MORE Act aims to correct the historical injustices of failed drug policies that have disproportionately impacted communities of color and low-income communities by decriminalizing marijuana at the federal level, reassessing marijuana convictions, and investing in local communities,” according to an announcement about the proposed legislation.

U.S. Senator Kamala Harris introduced the companion bill in the Senate.

“As more states legalize marijuana, millions of Americans with marijuana-related convictions continue to face overwhelming barriers to jobs, education, and housing,” said Senator Harris. “That is why we must act to remove the burden of marijuana convictions and make sure these individuals have the support needed to move forward. It is also critical that everyone – especially people of color who have been disproportionately impacted by the War on Drugs – has a real opportunity to participate in this growing industry. This is a matter of racial and economic justice. I am grateful for Chairman Nadler’s partnership on this issue and for his leadership in moving this legislation forward. I look forward to the House of Representatives passing our legislation soon.”

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