It's about to get a lot easier for medical marijuana patients in Europe to buy their cannabis from Aphria (NASDAQ:APHA) by the end of the year. One of the company's subsidiaries, Avanti Rx Analytics recently earned a good manufacturing practices (GMP) certification from the Malta Medicines Authority.
Malta might be a small island nation in the Mediterranean, but the certification allows the company to ship products to any European Union member state that permits medical marijuana sales.
Enough to go around
Aphria expects to begin making shipments of medical cannabis to CC Pharma GmbH, its German subsidiary, by the end of May. It's hard to say just how much cannabis Aphria will ship to the EU in the quarters ahead, but it's probably safe to assume the Canadian producer won't have trouble meeting demand.
In Canada, Aphria boasts 2.4 million square feet of operating space that can produce up to 255,000 kilograms of cannabis annually. Unfortunately, the company only reported sales of 7,062 kilograms during the three months ended Nov. 30, 2019.
Enough profits ahead?
If Aphria's EU investments don't significantly boost the company's bottom line by the end of this calendar year, its stock price has a long way to tumble.
Aphria reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) that reached 1.9 million Canadian dollars during the company's fiscal second quarter. That's better than an adjusted loss, but it's hardly enough to justify the stock's recent $1.4 billion market cap.