Aphria Inks Major Wholesale Supply Agreement With Scientus Pharma, Health Canada Licensed Dealer

The agreement will generate approximately $5 million in revenue for Aphria over 12-month contract.

July 5, 2017

LEAMINGTON, ONTARIO — Aphria Inc. ("Aphria" or the "Company") (TSX:APH)(OTCQB:APHQF), through its subsidiary Pure Natures Wellness Inc. (o/a Aphria), is pleased to announce that it entered into a major wholesale supply agreement with HydRx Farms, Ltd. (o/a Scientus Pharma) ("Scientus Pharma"). Under the terms of the Agreement, Aphria is committing to supply over 25,000 fully grown medical cannabis plants over the next 12 months to Scientus Pharma. The first delivery, under the agreement will occur in the middle of Aphria's second quarter of 2018. Aphria expects to generate over $1.2 million of revenue from the wholesale supply agreement in each full quarter of shipments, with gross margins consistent with previously executed wholesale agreements.

Scientus Pharma, a vertically-integrated biopharmaceutical company, is raising the bar of cannabinoid products from medical-grade to pharmaceutical-grade. Leveraging its proprietary, patent-pending formulation and processing technologies, Scientus Pharma is committed to leading the medical cannabis market towards pharmaceutical standards in manufacturing, formulations and dosing.

"Scientus Pharma shares our vision for providing high-quality products to medical cannabis patients, which is enabled by our 509-step Seed-to Sale quality assurance program," said Vic Neufeld, Chief Executive Officer of Aphria. "Through this agreement, Scientus Pharma will get access to clean and safe cannabis, which is necessary in the biopharmaceutical cannabis industry. In return, Aphria will benefit from guaranteed product distribution advancing Aphria's growth strategy."

"Scientus Pharma intends to leverage this key raw material supply contract to help it lead the evolution of cannabinoid products from medical-grade to pharmaceutical-grade," said Trevor Folk, Chief Executive Officer of Scientus Pharma. "Our proprietary extraction technology platform has solved the resin consistency issue that has here-to-for prevented that scientific advancement, and it is the foundation for Scientus Pharma's pipeline of novel products."