Aphria Announces Financial Results for Third Quarter 2015

LEAMINGTON, ONTARIO--(Marketwired - April 24, 2015) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) today reported its financial results for the third quarter ended February 28, 2015. Aphria's fiscal year end is May 31, 2015. Dollar amounts are expressed in Canadian currency.

Business Highlights

• Signs sponsorship agreement with Apollo Applied Research
• Renews Health Canada license
• Embarks on secondary wholesale strategy following license amendment
• Commences initial phase of capacity expansion
• Signs referral contracts with two national organizations

Q3 2015 Financial & Operational Highlights

Three-month period ended February 28, 2015

		3 months ended
		February 28, 2015
Revenue		$ 51,540
Cost of goods sold		(26,858)
Change in biological assets		232,682
Gross margin		257,364
Adjusted Gross Margin1		35,396
	As a percentage of revenue	68.7%
Net loss		(3,103,111)
Adjusted Net Loss1		(617,048)
	Adjusted Net Loss per share1	(0.01)
Number of crop failures		nil
Inventory (grams)		222,830
1 Non-GAAP financial measures (Adjusted Gross Margin and Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per common share) are explained in Management's Discussion & Analysis under "Non-GAAP Financial Measures".

"We are off to a very strong start as a public company with the announcement of several strategic initiatives," said Vic Neufeld, President and CEO. "Patient registrations are exceeding our expectation, and continuous operational improvements during our ramp-up phase support our low cost producer advantage."

Results of Operations

Revenue

Revenue of $51,540 represents Aphria's first quarter of commercial sales of medical marijuana.

Gross Margin

Gross margin for the third quarter of 2015 was $257,364 and includes $232,682 related to the non-cash change in biological assets and $10,714 related to the fair value markup of cost of goods sold. As such, the Company's gross margin under IFRS likely differs from what would be shown if the Company was producing inventory that was not derived from a biological asset. Excluding these non-cash items relating to biological assets, Aphria's Adjusted Gross Margin² for the third quarter ended February 28, 2015 would have been $35,396, or 68.7% as a percentage of sales.

Operating Expenses

For the third quarter of 2015, general and administrative expenses were $357,819.

Net Loss and Net Loss per Share

Net loss for the third quarter of 2015 was $3,103,111, or a loss of $0.06 per share, and included the non-cash items relating to biological assets and the fair value markup of cost of goods sold as noted above as well as $2,708,031 for listing costs related to the Company's public listing process. The listing costs are not expected to recur in the future. Excluding these non-cash and non-recurring items, the Company's Adjusted Net Loss² would have been $617,048 or a loss of $0.01 per share on a per share basis.

² Non-GAAP financial measures (Adjusted Gross Margin and Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per common share) are explained in Management's Discussion & Analysis under "Non-GAAP Financial Measures".

About Aphria

Aphria, a company continued under the laws of the Province of Ontario and based in Leamington, Ontario, is in the business of producing, supplying and selling medical marijuana pursuant to the MMPR. Under the MMPR, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria. Aphria's common shares are listed on the TSX Venture Exchange under the ticker symbol "APH".

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to estimated margins, expectations for future growing capacity and expectations with respect to future production costs. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Source: Aphria Inc.