Aphria (APHA) announced this week that it will begin operating in Jamaica via its subsidiary Marigold Projects Jamaica Limited (“Marigold”).

Marigold received a retail Herb House license from Jamaica’s Cannabis Licensing Authority (“CLA”), giving it the green light to open its first store in Kingston, Jamaica.

The store will be called “Sensi Medical Cannabis House,” and will be located at Peter Tosh Square, overlooking the Peter Tosh Museum in New Kingston. The Medical Herb House is officially slated to open August 2019.

The retail location will feature a smoking lounge for on-site consumption, high-end accessories for sale, and offer Marigold proprietary strains of cannabis and brands under the name Sensi Gold.

“The approval of Marigold’s first Herb House signals an exciting time for Aphria. We believe that there is tremendous opportunity in Jamaica from a domestic and international perspective and we look forward to bringing Sensi products to the market,” says Irwin D. Simon, Aphria interim CEO.

“Receiving this license is testament to our team’s hard work and dedication in growing our Caribbean and LATAM business as we provide high-quality cannabis products in regions. Aphria will continue to execute on our business plan to create long-term value, sales growth, and profitably in Canada and internationally.”

Aphria Inc. owns 49 percent of subsidiary Marigold Projects, which has a Tier 3 license to cultivate more than 5-acres of cannabis for medical, scientific and therapeutic purposes. The farm is already fully operational, with inventory expected to exceed 2,700 kgs at opening.

Marigold is sitting on another 20-acres of vacant land with the expectation that it’ll be expanding its cultivation operations, and has another 10-acre farm in St. Catherine. The company plans to open an additional four Cannabis Houses in Portmore, Ocho Rios, Montego Bay and Negril — pending CLA license approval.

Where APHA stock goes from here

While news of Jamaican expansion may sound great for Aphria, it’s still been a challenging few months for a cannabis sector that’s been trending downward. And with Aphria’s next earnings release coming around the corner on Aug 1, it could make sense for investors to exercise caution.    

Based on moves in the options market lately, there is implied volatility that could suggest an impending rally or sell off. And throughout the past 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward.

APHA shares were trading at $5.47 per share on Tuesday afternoon, up $0.12 (+2.24%). Year-to-date, APHA has declined -3.87%, versus a 21.35% rise in the benchmark S&P 500 index during the same period.

This article is brought to you courtesy of StockNews.com.

About the Author: Eric Bowler

Eric is an accomplished journalist providing in-depth insights for more than two decades, with a special focus on the cannabis industry. Learn more about Eric’s background, along with links to his most recent articles. More...

More Resources for the Stocks in this Article