Aphria Committee Finds LATAM Asset Acquisition Cost Within 'Acceptable Range'

Aphria announced that its board of directors has accepted and considered the report of the special committee of independent directors, which reviewed the allegations made against the company in respect of the company's previously completed acquisition of LATAM Holdings.

The special committee completed its review of the acquisition with the assistance of independent legal advisor Lenczner Slaght Royce Smith Griffin LLP, independent forensic advisors Deloitte LLP and independent financial advisors Duff & Phelps Canada Limited. The Special Committee's work included a review of the company's books and records and other documents, meetings with certain financial and legal advisors to the company and, where available, certain members of senior management and directors of the board.

Aphria said the principal findings of the special committee focused on the LATAM assets included: The assets acquired pursuant to the Acquisition in Argentina, Colombia and Jamaica were verified to be in place and continued to develop according to the Company's business plan since the Acquisition, consistent with Aphria's previous public disclosure; Comprehensive, in-person site reviews were conducted by advisors to the Special Committee, which confirmed the existence of the LATAM assets and operations in each of Colombia and Jamaica, as well as work to confirm the contractual and permitting arrangements in Argentina; and the consideration paid for the assets purchased in the Acquisition was determined to be within an acceptable range as compared to similar acquisitions by competitors, be it near the top of the range of observable valuation metrics. In the normal course of business and on an annual basis, consistent with the requirements under International Financial Reporting Standards, the company will assess the carrying value of the acquired assets. In addition, as part of its review of the company's operations, the board affirmed that based on the most recent Health Canada inspection, Aphria's Leamington facility and operations are in compliance with the requirements of the Cannabis Act and the cannabis products cultivated from this facility are produced in accordance with stringent quality assurance and quality control going beyond "Good Product Practices".

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