Aphria deal could help boost its stock

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The company has entered into a partnership with PAX Labs for vape pens

Aphria has announced that it will team up with San Francisco-based PAX Labs to begin offering a new line of cannabis vape products. The cannabis cultivator will be one of four to work with PAX Labs, supplying it with a steady amount of cannabis and the news proved to impress Aphria’s investors. After the announcement was made at the end of last week, the company’s stock immediately saw substantial improvement.

At the end of the day on Thursday, the stock was trading at around $6.89. The next morning, it jumped to $7.27 and saw another increase to $7.45 by 1 PM. Today, it has been trading at around $7.54 and is currently sitting at $7.54. To date, the stock is up 30%.

PAX Labs is creating the PAX Era, a pod-based vaporizer that looks like the company’s JUUL product. Vaporizers aren’t yet legal in Canada, but this is expected to change before the end of the year and growers want to be ready.

Aphria’s VP of Marketing, Megan McCrae, stated of the new deal, “This partnership reflects Aphria’s unwavering focus on innovation and new product offerings to meet the needs of all cannabis consumers, from novices to experienced users alike.”

Analysts are happy about the new arrangement. Robert Fagan of GMP Securities said that it represents an endorsement of the company’s execution capabilities, as well as its respective brand awareness in Canada. He added, “We believe that the association with PAX should also serve to elevate perceptions of these LPs’ product quality amongst consumers, which in turn could be an important driver of market share in Canada.”

Along with Aphria, Aurora Cannabis, Supreme Cannabis Company and OrganiGram will supply cannabis for the new vaporizers, as well.