40-F/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 40-F

(AMENDMENT NO. 1)

¨ Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

x Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended May 31, 2019 Commission File Number  001-38708

Aphria Inc.

(Exact name of Registrant as specified in its charter)

Canada
(Province or other jurisdiction of incorporation or organization) 2833
(Primary Standard Industrial Classification Code Number) N/A
(I.R.S. Employer
Identification Number)

265 Talbot St. W.
Leamington, Ontario, Canada N8H 4H3
(844) 427-4742
(Address and telephone number of Registrant’s principal executive offices)

 CT Corporation System
15^th Street N.W., Suite 1000, Washington, DC

20005 (202) 572-3100

(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	APHA	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Common Shares, no par value

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

x Annual information form x Audited annual financial statements

Indicate the number of outstanding shares of each of the registrant’s classes of capital or common stock as of the close of the period covered by the annual report: 250,989,120

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ¨ Yes ¨ No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company x

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

EXPLANATORY NOTE

Aphria Inc. (“Aphria” or the “Registrant”) is filing this Amendment No. 1 (the “Form 40-F/A”) to its Annual Report on Form 40-F for the year ended May 31, 2019 (the “Fiscal Year”), filed on August 1, 2019 (the “Original Filing”), solely to furnish its financial statements for the Fiscal Year formatted in eXtensible Business Reporting Language (“XBRL”). In accordance with the policy of the Securities and Exchange Commission (the “Commission”) stated in Release No. 33-9002, Aphria is filing this Form 40-F/A within the 30-day period available to first-time XBRL filers following the filing of our Form 40-F Annual Report, as filed with the Commission in the Original Filing.

2 

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

APHRIA INC.
By:	/s/ Irwin Simon  .
	Name:	Irwin Simon
	Title:	Chief Executive Officer

Date: August 23, 2019

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EXHIBIT INDEX

The following documents are being filed with the Commission as Exhibits to this Form 40-F/A:

Exhibit	Description
99.1	Annual Information Form dated July 31, 2019*
99.2	Audited Annual Consolidated Financial Statements and notes thereto as at and for the years ended May 31, 2019 and May 31, 2018, together with the report thereon of the independent auditor*
99.3	Management’s Discussion and Analysis for the years ended May 31, 2019 and May 31, 2018*
99.4	Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act*
99.5	Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act*
99.6	Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
99.7	Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
99.8	Consent of PricewaterhouseCoopers LLP*

XBRL
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Previously filed in the Original Filing.

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XML

Document and Entity Information	12 Months Ended
	May 31, 2019 shares
Document and Entity Information
Entity Registrant Name	Aphria Inc.
Entity Central Index Key	0001733418
Document Type	40-F
Document Period End Date	May 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding	250,989,120
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

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Consolidated Statements of Financial Position - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Current assets
Cash and cash equivalents	$ 550,797	$ 59,737
Marketable securities	20,199	45,062
Accounts receivable	25,488	3,386
Prepaids and other current assets	23,391	14,384
Inventory	91,529	22,150
Biological assets	18,725	7,331
Assets held for sale		40,620
Promissory notes receivable	39,200
Current portion of convertible notes receivable	11,500	1,942
Total current assets	780,829	194,612
Non-current assets
Capital assets	503,898	303,151
Intangible assets	392,056	226,444
Convertible notes receivable	20,730	16,129
Interest in equity investees	9,311	4,966
Long-term investments	64,922	46,028
Goodwill	669,846	522,762
Total assets	2,441,592	1,314,092
Current liabilities
Accounts payable and accrued liabilities	105,813	31,517
Income taxes payable	2,722	3,584
Deferred revenue	23,678	2,607
Current portion of promissory note payable		610
Current portion of long-term debt	6,332	2,140
Current portion of derivative liability		3,396
Total current liabilities	138,545	43,854
Long-term liabilities
Long-term debt	60,895	28,337
Convertible debentures	421,366
Derivative liability		9,055
Deferred tax liability	87,633	59,253
Total liabilities	708,439	140,499
Shareholders' equity
Share capital	1,655,273	1,113,981
Warrants	1,336	1,375
Share-based payment reserve	36,151	22,006
Accumulated other comprehensive loss	(119)	(801)
Non-controlling interest	28,409	9,580
Retained earnings	12,103	27,452
Total	1,733,153	1,173,593
Liabilities and Shareholder's equity	$ 2,441,592	$ 1,314,092

XML

Consolidated Statements of Income and Comprehensive Income - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Consolidated Statements of Income and Comprehensive Income
Revenue from cannabis produced	$ 86,348	$ 36,917
Distribution revenue	157,931
Other revenue	3,035
Excise taxes	(10,204)
Net revenue	237,110	36,917
Production costs	35,548	8,692
Cost of goods purchased	138,126
Other costs of sales	898	313
Gross profit before fair value adjustments	62,538	27,912
Fair value adjustment on sale of inventory	27,724	10,327
Fair value adjustment on growth of biological assets	(40,607)	(23,302)
Gross profit	75,421	40,887
Operating expenses:
General and administrative	69,752	13,901
Share-based compensation	26,080	17,874
Selling, marketing and promotion	27,971	11,873
Amortization	14,084	3,985
Research and development	1,391	490
Impairment	58,039
Transaction costs	23,259	5,192
Total Operating expenses	220,576	53,315
Operating loss	(145,155)	(12,428)
Non-operating income	129,510	48,284
Income (loss) before income taxes	(15,645)	35,856
Income taxes	854	6,408
Net income (loss)	(16,499)	29,448
Other comprehensive loss
Other comprehensive loss	(119)	(801)
Net comprehensive income (loss)	(16,618)	28,647
Total comprehensive income (loss) is attributable to:
Shareholders of Aphria Inc.	(14,667)	28,867
Non-controlling interest	$ (1,951)	$ (220)
Weighted average number of common shares - basic	242,763,558	161,026,463
Weighted average number of common shares - diluted	242,763,558	165,914,000
Earnings (loss) per share - basic	$ (0.07)	$ 0.18
Earnings (loss) per share - diluted	$ (0.07)	$ 0.18

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Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands	Share capital November 2017 bought deal	Share capital January 2018 bought deal	Share capital June 2018 Bought deal	Share capital Broken Coast Cannabis Ltd.	Share capital Nuuvera Holdings Limited	Share capital LATAM Holdings Inc.	Share capital	Warrants Nuuvera Holdings Limited	Warrants	Share-based payment reserve Nuuvera Holdings Limited	Share-based payment reserve	Accumulated other comprehensive loss	Non-controlling interest LATAM Holdings Inc.	Non-controlling interest	Retained earnings	November 2017 bought deal	January 2018 bought deal	June 2018 Bought deal	Broken Coast Cannabis Ltd.	Nuuvera Holdings Limited	LATAM Holdings Inc.	Total
Balance at May. 31, 2017							$ 274,317		$ 445		$ 3,230				$ (4,123)							$ 273,869
Balance (in shares) at May. 31, 2017							138,628,704
Shares issuance - Bought Deal	$ 86,661	$ 214,168														$ 86,661	$ 214,168
Shares issuance - Bought Deal (in shares)	12,689,675	14,373,675
Share issuance - acquisition				$ 109,000	$ 411,258			$ 1,015		$ 12,133									$ 109,000	$ 424,406
Share issuance - acquisition (in shares)				8,363,651	31,226,910
Share issuance - warrants exercised							$ 3,767		(85)													3,682
Share issuance - warrants exercised (in shares)							2,388,636
Share issuance - options exercised							$ 11,559				(7,230)											4,329
Share issuance - options exercised (in shares)							2,493,623
Share issuance - deferred share units							$ 62															62
Share issuance - deferred share units (in shares)							5,050
share-based payments											15,780											15,780
Income tax recovery on share issuance costs							$ 3,002															3,002
Shares held in escrow for services not yet earned							187															187
Share-based payments rescinded											(1,907)				1,907
Non-controlling interest														$ 9,800								9,800
Total comprehensive income for the year												$ (801)		(220)	29,668							28,647
Balance at May. 31, 2018							$ 1,113,981		1,375		22,006	(801)		9,580	27,452							1,173,593
Balance (in shares) at May. 31, 2018							210,169,924
Shares issuance - Bought Deal			$ 245,925															$ 245,925
Shares issuance - Bought Deal (in shares)			21,835,510
Share issuance - acquisition				$ 297		$ 273,900							$ 11,341						$ 297		$ 285,241
Share issuance - acquisition (in shares)				19,963		15,678,310
Share issuance - warrants exercised							$ 1,762		(39)													1,723
Share issuance - warrants exercised (in shares)							550,335
Share issuance - options exercised							$ 15,029				(9,933)											5,096
Share issuance - options exercised (in shares)							2,632,078
Share issuance - deferred share units							$ 953															953
Share issuance - deferred share units (in shares)							103,000
share-based payments											24,078											24,078
Income tax recovery on share issuance costs							$ 3,426															3,426
Elimination of CTA on disposal of equity investee												801			(801)
Non-controlling interest														9,439								9,439
Total comprehensive income for the year												(119)		(1,951)	(14,548)							(16,618)
Balance at May. 31, 2019							$ 1,655,273		$ 1,336		$ 36,151	$ (119)		$ 28,409	$ 12,103							$ 1,733,153
Balance (in shares) at May. 31, 2019							250,989,120

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Consolidated Statements of Cash Flows - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Cash generated used in operating activities:
Net income (loss) for the year	$ (16,499)	$ 29,448
Adjustments for:
Future income taxes	(4,090)	3,658
Fair value adjustment on sale of inventory	27,724	10,327
Fair value adjustment on growth of biological assets	(40,607)	(23,302)
Loss on marketable securities	178	2,155
Unrealized foreign exchange gain	(256)	(94)
Amortization	22,940	6,678
(Gain) loss on sale of capital assets	(55)	191
Impairment	58,039
Unrealized loss (gain) on convertible notes receivable	3,399	(5,943)
Gain on equity investees	(58,438)	(24,587)
Deferred gain recognized	(618)	(1,304)
Consulting revenue		(1,244)
Other non-cash items	(566)	(63)
Share-based compensation	26,080	17,874
Gain on long-term investments	(19,651)	(26,675)
Unrealized gain on convertible debentures	(48,439)
Unrealized loss on financial liabilities	1,326	12,451
Transaction costs	15,419	5,192
Change in non-cash working capital	(21,491)	(10,411)
Cash flows from (used in) operating activities	(55,605)	(5,649)
Cash provided by financing activities:
Share capital issued, net of cash issuance costs	245,925	195,661
Share capital issued on warrants, options and DSUs exercised	7,772	8,011
Proceeds from convertible debentures	454,386
Proceeds from non-controlling interest		9,800
Advances from related parties		11,386
Repayment of amounts due to related parties		(10,890)
Proceeds from long-term debt	27,841
Repayment of long-term debt	(11,374)	(7,622)
Cash flows from (used in) financing activities	724,550	206,346
Cash used in investing activities:
Investment in marketable securities		(7,365)
Proceeds from disposal of marketable securities	24,685	47,495
Investment in capital and intangible assets, net of shares issued	(205,965)	(216,699)
Proceeds from disposal of capital assets	55	431
Convertible notes advances	(19,500)	(14,001)
Repayment of convertible and promissory notes receivable	8,551	640
Investment in long-term investments and equity investees	(72,367)	(51,692)
Proceeds from disposal of long-term investments and equity investees	110,213	43,077
Net cash paid on business acquisitions	(23,557)	(22,756)
Cash flows from (used in) investing activities	(177,885)	(220,870)
Net increase (decrease) in cash and cash equivalents	491,060	(20,173)
Cash and cash equivalents, beginning of year	59,737	79,910
Cash and cash equivalents, end of year	$ 550,797	$ 59,737

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Consolidated Statements of Cash Flows (Parenthetical) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Cash is comprised of:
Cash in bank	$ 129,998	$ 15,073
Short-term deposits	420,799	44,664
Cash and cash equivalents	$ 550,797	$ 59,737

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Nature of operations

12 Months Ended

May 31, 2019

Nature of operations

Nature of operations

1.        Nature of operations

Aphria Inc. (the "Company" or “Aphria”) existing under the laws of Business Corporations Act (Ontario) and is licensed to produce and sell cannabis under The Cannabis Act. In February 2018, the Company acquired Broken Coast Cannabis Ltd. (“Broken Coast”) (Note 11). Broken Coast is licensed to produce and sell cannabis under The Cannabis Act. In March 2018, the Company acquired Nuuvera Inc. (“Nuuvera”) (Note 11). Nuuvera is an international organization with a focus on building a global cannabis brand, with operations in Germany, Italy, Malta, and Lesotho. In September 2018, the Company acquired LATAM Holdings Inc. (“LATAM”) (Note 11). This purchase provides Aphria an early foothold into the Latin American cannabis market whereby LATAM holds licenses and license applications presently in-process for production, import, export and sale of cannabis and cannabis derivatives in Colombia, Argentina and Jamaica. In January 2019, Aphria through wholly-owned subsidiary Nuuvera Deutschland GmbH acquired CC Pharma GmbH (“CC Pharma”) (Note 11). CC Pharma is a distributor of pharmaceutical products to pharmacies in Germany.

In July 2018, Aphria Inc. and its wholly-owned subsidiary, Pure Natures Wellness Inc. (o/a Aphria) amalgamated.

1974568 Ontario Ltd. (“Aphria Diamond”) is a 51% majority owned subsidiary of the Company, incorporated in November 2017. Aphria Diamond has applied for its cultivation licence under the provisions of The Cannabis Act.

The registered office of the Company is located at 1 Adelaide Street East Suite 2310, Toronto, Ontario.

The Company’s common shares are listed under the symbol “APHA” on the Toronto Stock Exchange (“TSX”) in Canada and the New York Stock Exchange (“NYSE”) in the United States.

These consolidated financial statements were approved by the Company’s Board of Directors on July 31, 2019.

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Basis of preparation

12 Months Ended

May 31, 2019

Basis of preparation

Basis of preparation

2.      Basis of preparation

(a)Statement of compliance

The policies applied in these consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the IFRS Interpretations Committee (“IFRIC”).

(b)Basis of measurement

These consolidated financial statements have been prepared on the going concern basis, under the historical cost convention except for certain financial instruments that are measured at fair value and biological assets that are measured at fair value less costs to sell, as detailed in the Company’s accounting policies.

(c)Functional currency

All figures presented in the consolidated financial statements are reflected in Canadian dollars; however, the functional currency of the Company includes the Canadian dollar and the Euro.

Foreign currency transactions are translated to the respective functional currencies of the Company’s entities at the exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the foreign exchange rate applicable at the statement of financial position date. Non-monetary items carried at historical cost denominated in foreign currencies are translated to the functional currency at the date of the transactions. Non-monetary items carried at fair value denominated in foreign currencies are translated to the functional currency at the date when the fair value was determined. Realized and unrealized exchange gains and losses are recognized through profit and loss.

On consolidation, the assets and liabilities of foreign operations reported in their functional currencies, including marketable securities, long-term investments and promissory notes payable, are translated into Canadian dollars, the Group’s presentation currency, at period-end exchange rates. Income and expenses, and cash flows of foreign operations are translated into Canadian dollars using average exchange rates. Exchange differences resulting from translating foreign operations are recognized in other comprehensive income and accumulated in equity. The Company and all of its subsidiaries functional currency is Canadian dollars, with the exception of CC Pharma GmbH whose functional currency is the Euro.

(d)Basis of consolidation

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly and indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Subsidiaries	Jurisdiction of incorporation	Ownership interest(1)
Nuuvera Holdings Limited	Ontario, Canada	100	%
ARA – Avanti Rx Analytics Inc.	Ontario, Canada	100	%
Nuuvera Israel Ltd.(2)	Israel	100	%
Nuuvera Deutschland GmbH	Germany	100	%
Aphria Deutschland GmbH	Germany	100	%
FL-Group	Italy	100	%
Broken Coast Cannabis Ltd.	British Columbia, Canada	100	%
Goodfields Supply Co. Ltd.	United Kingdom	100	%
LATAM Holdings Inc.	British Columbia, Canada	100	%
MMJ Colombia Partners Inc.	Ontario, Canada	100	%
Marigold Acquisitions Inc.	British Columbia, Canada	100	%
Hampstead Holdings Ltd.	Bermuda	100	%
MMJ International Investments Inc.	British Columbia, Canada	100	%
ABP, S.A.	Argentina	100	%
CC Pharma GmbH	Germany	100	%
CC Pharma Research and Development GmbH	Germany	100	%
Aphria Handelsgesellschaft	Germany	100	%
Marigold Projects Jamaica Limited	Jamaica	95	%(3)
Nuuvera Malta Ltd.	Malta	90	%
ASG Pharma Ltd.	Malta	90	%(4)
QSG Health Ltd.	Malta	90	%(5)
ColCanna S.A.S.	Colombia	90	%
CC Pharma Nordic ApS	Denmark	75	%
1974568 Ontario Ltd.	Ontario, Canada	51	%
Aphria Terra S.R.L.	Italy	51	%
Aphria Italy S.p.A.(2)	Italy	51	%
APL – Aphria Portugal, Lda.	Portugal	51	%
CannInvest Africa Ltd.	South Africa	50	%
Verve Dynamics Incorporated (Pty) Ltd.	Lesotho	30	%(6)

(1) The Company defines ownership interest as the interest in which the Company is entitled a proportionate share of net income. Legal ownership of some subsidiaries differ from ownership interest shown above.

(2) Represents inactive subsidiaries, which have no operations and do not own any assets, save and except for related party balances owing to the Company and is in the process of being dissolved.

(3) The Company holds 49% of the issued and outstanding shares of Marigold Projects Jamaica Limited, through wholly owned subsidiary Marigold Acquisitions Inc. The Company holds rights through a licensing agreement to 95% of the results of operations of Marigold Projects Jamaica Limited.

(4) The Company holds 100% of the issued and outstanding shares of ASG Pharma Ltd., through 90% owned subsidiary Nuuvera Malta Ltd.

(5) The Company holds 100% of the issued and outstanding shares of QSG Health Ltd., through 90% owned subsidiary Nuuvera Malta Ltd.

(6) The Company holds 60% of the issued and outstanding shares of Verve Dynamics Incorporated (Pty) Ltd., through 50% owned subsidiary CannInvest Africa Ltd.

Intragroup balances, and any unrealized gains and losses or income and expenses arising from transactions with jointly controlled entities are eliminated to the extent of the Company’s interest in the entity.

The Company treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to the owners of the Company.

(e)Amalgamations and dissolutions

Effective June 1, 2017, CannWay Pharmaceuticals Ltd. (“CannWay”), a wholly-owned subsidiary of the Company, was amalgamated with Pure Natures Wellness Inc. (o/a Aphria). The Company has historically presented all balances and activities of CannWay as a fully consolidated entity for financial statement presentation purposes. As of the date of amalgamation, CannWay did not have any assets or outstanding liabilities. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation.

Effective July 23, 2018, Pure Natures Wellness Inc. (o/a Aphria). (“PNW”), a wholly-owned subsidiary of the Company, was amalgamated with Aphria Inc. The Company had historically presented all balances and activities of PNW as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation.

Effective February 1, 2019, 2589671 Ontario Inc. and 2589674 Ontario Inc., each a wholly-owned subsidiary of the Company, were amalgamated with Avalon Pharmaceuticals Inc. The Company has historically presented all balances and activities of 2589671 Ontario Inc., 2589674 Ontario Inc. and Avalon Pharmaceuticals Inc. as a fully consolidated entity for financial statement presentation purposes. Effective April 15, the Company wound-up wholly owned subsidiary Avalon Pharmaceuticals into wholly owned subsidiary Nuuvera Holdings Limited. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation and wind-up.

Effective April 15, 2019, Nuuvera Inc. and Cannan Growers Inc., each a wholly-owned subsidiary of the Company, were wound up into Aphria Inc. The Company had historically presented all balances and activities of Nuuvera Inc. and Cannan Growers Inc. as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the wind-up.

Effective April 25, 2019, Aphria (Arizona) Inc., a wholly-owned subsidiary of the Company, was dissolved. The Company had historically presented all balances and activities of Aphria (Arizona) Inc. as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the dissolution.

(f)Interest in equity investees

The Company’s interest in equity investees is comprised of its interest in Althea Company Pty Ltd. (“Althea”).

In accordance with IFRS 10, associates are those in which the Company has significant influence, but not control or joint control over the financial and accounting policies.

Interests in associates are accounted for using the equity method in accordance with IAS 28. They are recognized initially at cost, which includes transaction costs. After initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income (“OCI”) of equity investees until the date on which significant influence ceases.

If the Company’s share of losses in an equity investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The carrying amount of equity investments is tested for impairment in accordance with the policy described in Note 3(k).

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Significant accounting policies

12 Months Ended

May 31, 2019

Significant accounting policies

Significant accounting policies

3.      Significant accounting policies

The significant accounting policies used by the Company are as follows:

a.     Revenue

Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for transferring promised goods. Revenue from the sale of goods is recognized when control of the goods has transferred, which is determined by respective shipping terms and certain additional considerations. Invoices are generally issued at the time of delivery (which is when the Company has satisfied its performance obligation under the arrangement). The Company does not have performance obligations subsequent to delivery on the sale of goods to customers and revenues from sale of goods are recognized upon passing of control to the customer.

Amounts disclosed as net revenue are net of sales tax, duty tax, allowances, discounts and rebates.

c.     Cash and cash equivalents

Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash and are subject to insignificant risk of changes in value.

d.     Marketable securities

Marketable securities are comprised of liquid investments in federal, provincial and/or corporate bonds with maturities less than 3.5 years. Marketable securities are recognized initially at fair value and subsequently adjusted to fair value through profit or loss (“FVTPL”).

e.     Inventory

Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. The capitalized cost of inventory includes the direct and indirect costs initially capitalized to biological assets before the transfer to inventory. The capitalized cost also includes subsequent costs such as materials, labour and amortization expense on equipment involved in packaging, labelling and inspection. The total cost of inventory also includes a fair value adjustment which represents the fair value of the biological asset at the time of harvest. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within ‘production costs’ on the statements of income and comprehensive income at the time cannabis is sold, the realized fair value amounts included in inventory sold are recorded as a separate line on the statements of income and comprehensive income.

f.     Biological assets

The Company’s biological assets consist of cannabis plants which are not yet harvested. These biological assets are measured at fair value less costs to sell. The Company capitalizes all related direct costs of growing materials as well as other indirect costs of production such as utilities and supplies used in the growing process. Indirect labour for individuals involved in the growing and quality control process is also included, as well as amortization on production equipment and overhead costs to the extent it is associated with the growing space. All direct and indirect costs of biological assets are capitalized as they are incurred, and subsequently transferred to inventory at the point of harvest. Unrealized fair value gains on growth of biological assets are recorded in a separate line on the face of the statements of income and comprehensive income and subsequently transferred to inventory at the point of harvest.

g.      Assets held for sale

Assets and liabilities held for disposal are no longer amortized and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable.

h.     Capital assets

Capital assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any.

Amortization is calculated using the following terms and methods:

Asset type	Amortization method	Amortization term
Land	Not amortized	No term
Production facility	Straight-line	15 – 20 years
Equipment	Straight-line	3 – 10 years
Leasehold improvements	Straight-line	Over lease term
Construction in progress	Not amortized	No term

An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the consolidated statements of income and comprehensive income in the year the asset is derecognized.

The assets’ residual values and useful lives are reviewed at each financial year end and adjusted prospectively if appropriate.

i.     Intangible assets

Intangible assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any.

Amortization is calculated using the following terms and methods:

Asset type	Amortization method	Amortization term
Customer relationships	Straight-line	3 – 10 years
Corporate website	Straight-line	2 years
Licences, permits & applications	Straight-line	90 months – indefinite
Non-compete agreements	Straight-line	Over term of non-compete
Intellectual property, trademarks & brands	Straight-line	15 months – 20 years

The estimated success of applications and useful life are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Following initial recognition, intangible assets with indefinite useful lives are carried at cost less any accumulated impairment losses.

j.      Goodwill

Goodwill represents the excess of the purchase price paid for the acquisition of subsidiaries over the fair value of the net tangible and intangible assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

k.      Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating unit, or “CGU”). An impairment loss is recognized for the amount, if any, by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less cost to sell and the value in use (being the present value of expected future cash flows of the asset or CGU). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been previously recognized,with the exception of goodwill and indefinite lived intangible assets.

l.     Income taxes

Income tax expense consisting of current and deferred tax expense is recognized in the consolidated statements of income and comprehensive income. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs.

A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

m.      Earnings per share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. The dilutive effect on earnings per share is calculated presuming the exercise of outstanding options, warrants, convertible debentures and similar instruments. It assumes that the proceeds of such exercise would be used to repurchase common shares at the average market price during the year. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive.

n.    Share-based compensation

The Company has an omnibus long-term incentive plan which includes issuances of stock options, restricted share units and deferred share units in place. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value is measured using the Black-Scholes option pricing model. Expected forfeitures are estimated at the date of grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. Any revisions are recognized in the consolidated statements of income and comprehensive income such that the cumulative expense reflects the revised estimate.

o.     Research and development

Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures that do not meet the above criteria are recognized in the consolidated statements of income and comprehensive income as incurred.

p.     Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at FVTPL , are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

Fair value estimates are made at the consolidated statement of financial position date based on relevant market information and information about the financial instrument. The Company has made the following classifications:

Financial assets/liabilities	IFRS 9 Classification
Cash and cash equivalents	FVTPL
Marketable securities	FVTPL
Accounts receivable	amortized cost
Other receivables	amortized cost
Convertible notes receivable	FVTPL
Long-term investments	FVTPL
Promissory notes receivable	amortized cost
Accounts payable and accrued liabilities	other financial liabilities
Income taxes payable	other financial liabilities
Promissory note payable	other financial liabilities
Convertible debentures	FVTPL
Long-term debt	other financial liabilities
Derivative liability	FVTPL

(i)     FVTPL financial assets

Financial assets are classified as FVTPL when the financial asset is held for trading or it is designated as FVTPL. Financial assets classified as FVTPL are stated at fair value with any resulting gain or loss recognized in the consolidated statements of income and comprehensive income. Transaction costs are expensed as incurred.

(ii)     Amortized cost financial assets

Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost.

(iii)     Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.

The carrying amount of all financial assets, excluding trade receivables, is directly reduced by the impairment loss. The carrying amount of trade receivables is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statements of income and comprehensive income. With the exception of FVOCI equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease relates to an event occurring after the impairment was recognized; the previously recognized impairment loss is reversed through the consolidated statements of income and comprehensive income.

(iv)     Financial liabilities and other financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. Financial liabilities at FVTPL are stated at fair value, with changes being recognized through the consolidated statements of income and comprehensive income. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.

(v)     Embedded derivatives

Embedded derivatives are separated from the host contract and accounted for separately if certain criteria are met. Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are recognised in profit or loss.

(vi)     Determination on fair value of long-term investments

All long-term investments (other than Level 3 warrants) are initially recorded at the transaction price, being the fair value at the time of acquisition. Thereafter, at each reporting period, the fair value of an investment is adjusted using one or more of the valuation indicators described below.

q.     Critical accounting estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the review affects both current and future periods.

Long-term investments and convertible notes receivable

The determination of fair value of the Company’s long-term investments and convertible notes receivable at other than initial cost is subject to certain limitations. Financial information for private companies in which the Company has investments may not be available and, even if available, that information may be limited and/or unreliable.

Use of the valuation approach described below may involve uncertainties and determinations based on the Company’s judgment and any value estimated from these techniques may not be realized or realizable.

Company-specific information is considered when determining whether the fair value of a long-term investment or convertible notes receivable should be adjusted upward or downward at the end of each reporting period. In addition to company-specific information, the Company will take into account trends in general market conditions and the share performance of comparable publicly-traded companies when valuing long-term investments and convertible notes receivable.

The fair value of long-term investments and convertible notes receivable may be adjusted if:

· There has been a significant subsequent equity financing provided by outside investors at a valuation different than the current value of the investee company, in which case the fair value of the investment is set to the value at which that financing took place;

· There have been significant corporate, political, or operating events affecting the investee company that, in management’s opinion, have a material impact on the investee company’s prospects and therefore its fair value. In these circumstances, the adjustment to the fair value of the investment will be based on management’s judgment and any value estimated may not be realized or realizable;

· The investee company is placed into receivership or bankruptcy;

· Based on financial information received from the investee company, it is apparent to the Company that the investee company is unlikely to be able to continue as a going concern;

· Important positive/negative management changes by the investee company that the Company’s management believes will have a positive/negative impact on the investee company’s ability to achieve its objectives and build value for shareholders.

Adjustment to the fair value of a long-term investment and convertible notes receivable will be based upon management’s judgment and any value estimated may not be realized or realizable. The resulting values for non-publicly traded investments may differ from values that would be realized if a ready market existed.

Biological assets and inventory

Management is required to make a number of estimates in calculating the fair value less costs to sell of biological assets and harvested cannabis inventory. These estimates include a number of assumptions such as estimating the stage of growth of the cannabis, harvesting costs, sales price, and expected yields.

Estimated useful lives, impairment considerations and amortization of capital and intangible assets

Amortization of capital and intangible assets is dependent upon estimates of useful lives based on management’s judgment.

Goodwill and indefinite life intangible asset impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill and indefinite life intangible assets are impaired.

Impairment of definite long-lived assets is influenced by judgment in defining a CGU and determining the indicators of impairment, and estimates used to measure impairment losses

The recoverable value of goodwill, indefinite and definite long-lived assets is determined using discounted future cash flow models, which incorporate assumptions regarding future events, specifically future cash flows, growth rates and discount rates.

Share-based compensation

The fair value of share-based compensation expenses are estimated using the Black-Scholes option pricing model and rely on a number of estimates, such as the expected life of the option, the volatility of the underlying share price, the risk free rate of return, and the estimated rate of forfeiture of options granted.

Business combinations

Judgement is used in determining whether an acquisition is a business combination or an asset acquisition. In determining the allocation of the purchase price in a business combination, including any acquisition-related contingent consideration, estimates including market based and appraisal values are used. The contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37, as appropriate, with the corresponding gain or loss being recognized in profit or loss.

The Company measures all assets acquired and liabilities assumed at their acquisition-date fair values. Non-controlling interests in the acquiree are measured on the basis of the non-controlling interests’ proportionate share of this equity in the acquiree’s identifiable net assets. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received (except for the costs to issue debt or equity securities which are recognized according to specific requirements). The excess of the aggregate of (a) the consideration transferred to obtain control, the amount of any non-controlling interest in the acquire over (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date.

Convertible debentures

The fair value of the convertible debentures is determined using the quoted price in the over-the-counter broker market. As the convertible debentures are classified as FVTPL, the subsequent interest as well as change in the fair value will flow through the consolidated statements of comprehensive income.

r.     New standards and interpretations applicable effective June 1, 2018

IFRS 9 - Financial Instruments; Classification and Measurement, effective for annual periods beginning on or after January 1, 2018, with early adoption permitted, introduces new requirements for the classification, measurement and derecognition of financial instruments and introduces a new impairment model for financial assets.

Under IFRS 9, financial instruments are initially measured at fair value plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs. Subsequently, all assets within scope of IFRS 9 are measured at:

(i) Amortized cost;

(ii) Fair value through other comprehensive income (“FVOCI”); or

(iii) Fair value through profit or loss (“FVTPL”).

The classification is based on whether the contractual cash flows give rise to payments on specified dates that are solely payments of principal and interest (the “SPPI test”), and the objective of the Company’s business model is to hold assets only to collect cash flows, or to collect cash flows and to sell (the “Business Model test”). Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date.

The impairment requirements under IFRS 9 are based on an expected credit loss (“ECL”) model, replacing the IAS 39 incurred loss model. The expected credit loss model applies to debt instruments recorded at amortized cost or at FVOCI, such as loans, debt, securities and trade receivables, lease receivables and most loan commitments and financial guarantee contracts.

The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:

Financial assets/liabilities	IAS 39 Classification	IFRS 9 Classification
Cash and cash equivalents	FVTPL	FVTPL
Marketable securities	FVTPL	FVTPL
Accounts receivable	loans and receivables	amortized cost
Other receivables	loans and receivables	amortized cost
Convertible notes receivable	AFS	FVTPL
Long-term investments	FVTPL	FVTPL
Accounts payable and accrued liabilities	other financial liabilities	other financial liabilities
Income taxes payable	other financial liabilities	other financial liabilities
Promissory note payable	other financial liabilities	other financial liabilities
Long-term debt	other financial liabilities	other financial liabilities
Derivative liability	derivative financial instruments	FVTPL

There were no other changes on adoption aside from the above classification changes.

IFRS 15 - Revenue from Contracts with Customers; effective for annual periods beginning on or after January 1, 2018, specifies how and when to recognize revenue, based on five-step model, and enhances relevant disclosures to be applied to all contracts with customers.

The Company has applied IFRS 15 retrospectively and determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows:

To recognize revenue under IFRS 15, the Company applies the following five steps:

1. Identify the contract(s) with a customer

2. Identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognize revenue when or as the Company satisfies a performance obligation

Revenue from the direct sale of goods to customers for a fixed price is recognized when the company transfers control of the good to the customer.

s.      New standards and interpretations issued but not yet adopted

IFRS 16 – Leases; in January 2016, the IASB issued IFRS 16, which specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019, and a lessee shall either apply IFRS 16 with full retrospective effect or alternatively not restate comparative information but recognise the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application. Based on its current assets, relationship with other entities interests and investments, no significant impact is anticipated from the new standard.

There are no other standards that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.

The Company has reclassified certain immaterial items on the comparative consolidated statements of financial position, consolidated statements of income and comprehensive income, and consolidated statements of cash flows to improve clarity.

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Marketable securities

12 Months Ended

May 31, 2019

Marketable securities

Marketable securities

4.      Marketable securities

Marketable securities are classified as fair value through profit or loss, and are comprised of:

	S&P rating at	Interest		Maturity	May 31,		May 31,
	purchase	rate		date	2019		2018
Fixed Income:
Ford Motor Credit Co. LLC	BBB	3.700	%	8/02/18	$	—	$	1,015
Sobeys Inc.	BB+	3.520	%	8/08/18		—		3,040
Canadian Western Bank	A-	3.077	%	1/14/19		—		1,528
Sun Life Financial Inc.	A	2.770	%	5/13/19		—		3,018
Ford Motor Credit Co. LLC	BBB	3.140	%	6/14/19		5,074		5,101
Canadian Western Bank	A-	3.463	%	12/17/19		1,019		1,025
Laurentian Bank of Canada	BBB	2.500	%	1/23/20		—		3,003
Enercare Solutions Inc.	BBB	4.600	%	2/03/20		3,907		3,974
Enbridge Inc.	BBB+	4.530	%	3/09/20		5,137		5,203
Choice Properties REIT	BBB	3.600	%	4/20/20		5,062		5,091
Westcoast Energy Inc.	BBB+	4.570	%	7/02/20		—		5,293
Citigroup Inc. (USD)	BBB+	2.050	%	12/17/18		—		3,914
Royal Bank of Canada (USD)	AA-	1.625	%	4/15/19		—		3,857
					$	20,199	$	45,062

The cost of marketable securities as at May 31, 2019 was $20,907 (May 31, 2018 – $45,863). During the year ended May 31, 2019, the company divested of certain marketable securities for proceeds of $24,685 (2018 - $47,495), resulting in a gain (loss) on disposal of $18 (2018 - $(608)), and re-invested $nil (2018 - $7,365). During the year ended May 31, 2019, the Company recognized a (loss) of $(178) (2018 - $(2,155)) on its marketable securities portfolio, of which $(196) (2018 - $(1,547)) represented unrealized fair value adjustments.

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Prepaids and other current assets

12 Months Ended

May 31, 2019

Prepaids and other current assets

Prepaids and other current assets

5.      Prepaids and other current assets

Prepaids and other current assets are comprised of:

	May 31,		May 31,
	2019		2018
Sales tax receivable	$	7,583	$	10,840
Accrued interest		2,779		831
Prepaid assets		10,696		1,720
Other		2,333		993
	$	23,391	$	14,384

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Inventory

12 Months Ended

May 31, 2019

Inventory

Inventory

6.      Inventory

Inventory is comprised of:

	Capitalized		Fair value		May 31,		May 31,
	cost		adjustment		2019		2018
Harvested cannabis	$	10,039	$	13,214	$	23,253	$	12,331
Harvested cannabis trim		2,830		2,959		5,789		2,277
Cannabis oil		11,300		8,301		19,601		6,578
Softgel capsules		422		342		764		—
Distribution inventory		32,944		—		32,944		—
Other inventory items		9,178		—		9,178		964
	$	66,713	$	24,816	$	91,529	$	22,150

During the year ended May 31, 2019, the Company recorded $35,548 (2018 - $8,692) of production costs. Included in production costs for the year ended May 31, 2019 is $1,682 of cannabis oil conversion costs (2018 - $241),  $142 related to the cost of accessories (2018 - $236), and amortization of $4,133 (2018 - $1,715). The Company also included $4,723 of amortization which remains in inventory for the year ended May 31, 2019 (2018 - $978) related to capital assets utilized in production. During the year ended May 31, 2019, the Company expensed $27,724 (2018 –$10,327) of fair value adjustments on the growth its biological assets included in inventory sold.

The Company holds 6,309.9 kilograms of harvested cannabis (May 31, 2018 – 3,221.3 kgs), 1,908.0 kilograms of harvested cannabis trim (May 31, 2018 – 702.0 kgs) and 28,458.1 litres of cannabis oils or 4,949.2 kilograms equivalent in various stages of production (May 31, 2018 – 7,724.7 litres or 1,716.6 kilograms equivalent), 982.0 litres of cannabis oils used in softgel capsules or 218.2 kilograms equivalent at May 31, 2019 (May 31, 2018 – nil).

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Biological assets

12 Months Ended

May 31, 2019

Biological assets

Biological assets

7.      Biological assets

Biological assets are comprised of:

	Amount
Balance at May 31, 2017	$	1,408
Changes in fair value less costs to sell due to biological transformation		23,302
Purchased as part of business acquisition		826
Production costs capitalized		12,143
Transferred to inventory upon harvest		(30,348)
Balance at May 31, 2018	$	7,331
Changes in fair value less costs to sell due to biological transformation		40,607
Production costs capitalized		47,747
Transferred to inventory upon harvest		(76,960)
Balance at May 31, 2019	$	18,725

The Company values cannabis plants at cost, which approximates fair value from the date of initial clipping from mother plants until half way through the flowering cycle of the plants. Measurement of the biological transformation of the plant at fair value less costs to sell begins in the fourth week prior to harvest and is recognized evenly until the point of harvest. The number of weeks in the growing cycle is between twelve and sixteen weeks from propagation to harvest. The Company has determined the fair value less costs to sell of harvested cannabis and harvested cannabis trim to be $3.50 and $2.75 per gram respectively, upon harvest for greenhouse produced cannabis (May 31, 2018 – $3.75 and $3.00 per gram) and $4.00 and $3.25 per gram respectively (May 31, 2018 - $4.25 and $3.50 per gram), upon harvest for indoor produced cannabis.

The effect of the fair value less cost to sell over and above historical cost was an increase in non-cash value of biological assets and inventory of $40,607 during the year ended May 31, 2019 (2018 – $23,302).

The fair value of biological assets is determined using a valuation model to estimate expected harvest yield per plant applied to the estimated price per gram less processing and selling costs. Only when there is a material change from the expected fair value used for cannabis does the Company make any adjustments to the fair value used. During the year, there was no material change to these inputs and therefore there has been no change in the determined fair value per plant.

In determining the fair value of biological assets, management has made the following estimates in this valuation model:

· The harvest yield is between 40 grams and 80 grams per plant;

· The selling price is between $3.00 and $7.00 per gram;

· Processing costs include drying and curing, testing, post-harvest overhead allocation, packaging and labelling costs between $0.30 and $0.80 per gram;

· Selling costs include shipping, order fulfilment, patient acquisition and patient maintenance costs between $0.00 and $1.50 per gram;

Sales price used in the valuation of biological assets is based on the average selling price of all cannabis products and can vary based on different strains being grown as well as the proportion of sales derived from wholesale compared to retail. Selling costs vary depending on methods of selling and are considered based on the expected method of selling and the determined additional costs which would be incurred. Expected yields for the cannabis plant is also subject to a variety of factors, such as strains being grown, length of growing cycle, and space allocated for growing. Management reviews all significant inputs based on historical information obtained as well as based on planned production schedules.

Management has quantified the sensitivity of the inputs and determined the following:

· Selling price per gram – a decrease in the average selling price per gram by 5% would result in the biological asset value decreasing by $516 (2018 - $267) and inventory decreasing by $2,470 (2018 - $1,040)

· Harvest yield per plant – a decrease in the harvest yield per plant of 5% would result in the biological asset value decreasing by $266 (2018 - $179)

These inputs are level 3 on the fair value hierarchy and are subject to volatility in market prices and several uncontrollable factors, which could significantly affect the fair value of biological assets in future periods.

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Related party transactions

12 Months Ended

May 31, 2019

Related party transactions

Related party transactions

8.      Related party transactions

During the prior quarter, the Company disposed of its remaining shares in Liberty Health Sciences Inc. (“Liberty”) (Note 13).

The Company previously funded a portion of the Canadian operating costs of Liberty, for which Liberty reimbursed the Company quarterly. Liberty was considered a related party because certain officers and directors of Aphria were directors of Liberty. In January 2019, those directors resigned from Liberty’s and the Company's board and the Company ceased its relationship with Liberty.

The Company purchased certain electrical generation equipment from and pays rent to a company owned by a former director. In March 2019, the director resigned his officer and director position with the Company and was no longer considered a related party.

Key management personnel compensation for the year ended May 31, 2019 and 2018 was comprised of:

	Fortheyearended
	May 31,
	2019		2018
Salaries	$	5,024	$	1,699
Short-term employment benefits (included in office and general)		116		70
Share-based compensation		11,854		3,235
	$	16,994	$	5,004

Directors and officers of the Company control 0.1% or 135,942 of the voting shares of the company.

During the year ended May 31, 2019, the Company appointed Mr. Irwin Simon as Interim CEO and Chair of the Board. Mr. Simon’s compensation for the combined role is $1,100 annually, paid on a consultancy basis.On February 24, 2019, the Board of Aphria declared,  in accordance with the Omnibus Incentive Plan, 1,000,000 stock options and 25,000 restricted share units to Mr. Simon, which vested immediately.

During the year ended May 31, 2019 certain officers and non-independent directors retired from the Company. No amounts were paid to the retired officers and directors as part of their retirement. In addition, compensation for the Board of Directors were amended to a flat-fee $300 annually, with $150 paid in cash and $150 in Deferred Share Units under the Company’s Omnibus Plan each, plus a one-time award of 7,500 Restricted Share Units each.

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Capital assets

12 Months Ended

May 31, 2019

Capital assets

Capital assets

9.      Capital assets

			Production				Leasehold		Construction		Totalcapital
	Land		Facility		Equipment		improvements		inprocess		assets
Cost
At May 31, 2017	$	10,829	$	16,170	$	5,340	$	262	$	42,159	$	74,760
Business acquisitions		854		6,992		2,860		1,388		5,947		18,041
Additions		12,716		47,149		4,759		15		151,899		216,538
Transfers		105		29,338		2,990		—		(32,433)		—
Disposals		—		(207)		—		—		(415)		(622)
At May 31, 2018		24,504		99,442		15,949		1,665		167,157		308,717
Business acquisitions		345		4,524		1,662		182		154		6,867
Additions		8,109		3,829		28,305		778		163,953		204,974
Transfers		192		124,603		33,687		(1,389)		(157,093)		—
Effect of foreign exchange		3		70		24		—		11		108
At May 31, 2019	$	33,153	$	232,468	$	79,627	$	1,236	$	174,182	$	520,666
Accumulated depreciation
At May 31, 2017	$	—	$	983	$	1,260	$	62	$	—	$	2,305
Amortization		—		1,517		1,697		47		—		3,261
At May 31, 2018		—		2,500		2,957		109		—		5,566
Amortization		—		5,160		5,962		80		—		11,202
At May 31, 2019	$	—	$	7,660	$	8,919	$	189	$	—	$	16,768
Net book value
At May 31, 2017	$	10,829	$	15,187	$	4,080	$	200	$	42,159	$	72,455
At May 31, 2018	$	24,504	$	96,942	$	12,992	$	1,556	$	167,157	$	303,151
At May 31, 2019	$	33,153	$	224,808	$	70,708	$	1,047	$	174,182	$	503,898

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Intangible Assets

12 Months Ended

May 31, 2019

Intangible assets

Intangible Assets

10.    Intangible assets

									Intellectual
					Licences,				property,		Total
	Customer		Corporate		permits&		Non-compete		trademarks&		intangible
	relationships		website		applications		agreements		brands		assets
Cost
At May 31, 2017	$	—	$	218	$	1,250	$	—	$	4,887	$	6,355
Business acquisitions		11,730		39		137,920		1,930		76,190		227,809
Additions		—		152		—		—		9		161
At May 31, 2018		11,730		409		139,170		1,930		81,086		234,325
Business acquisitions		21,300		—		123,956		1,400		16,200		162,856
Additions		—		496		12,754		—		1,244		14,494
At May 31, 2019	$	33,030	$	905	$	275,880	$	3,330	$	98,530	$	411,675
Accumulated depreciation
At May 31, 2017	$	—	$	156	$	153	$	—	$	4,155	$	4,464
Amortization		1,274		100		124		314		1,605		3,417
At May 31, 2018		1,274		256		277		314		5,760		7,881
Amortization		4,729		161		582		1,176		5,090		11,738
At May 31, 2019	$	6,003	$	417	$	859	$	1,490	$	10,850	$	19,619
Net book value
At May 31, 2017	$	—	$	62	$	1,097	$	—	$	732	$	1,891
At May 31, 2018	$	10,456	$	153	$	138,893	$	1,616	$	75,326	$	226,444
At May 31, 2019	$	27,027	$	488	$	275,021	$	1,840	$	87,680	$	392,056

Included in Licences, permits & applications is $273,579 of indefinite lived intangible assets.

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Business Acquisitions

12 Months Ended

May 31, 2019

Business Acquisitions

Business Acquisitions

11.    Business Acquisitions

Acquisition of Broken Coast Cannabis Ltd.

On February 13, 2018, the Company entered into a share purchase agreement to purchase all of the shares of Cannan Growers Inc. (“Cannan”), a holding company owning shares of Broken Coast Cannabis Ltd. (“Broken Coast”), and to acquire the remaining shares for a combined total of 99.86% of the issued and outstanding shares of Broken Coast. The combined purchase price was $214,168 satisfied through the issuance of an aggregate 14,373,675 common shares. The share purchase agreement entitled the Company to control over Broken Coast on February 1, 2018, which became the effective acquisition date. In August 2018, the Company came to terms with the holder of the remaining 0.14% of the issued and outstanding shares of Broken Coast. In exchange for purchasing the remaining shares, the Company issued 19,963 shares to the holder.

The table below summarizes the fair value of the assets acquired and the liabilities assumed at the acquisition date:

	Note	Numberofshares	Shareprice		Amount
Consideration paid
Shares issued	(i)	14,393,638	$	14.90	$	214,465
Total consideration paid					$	214,465
Net assets acquired
Current assets
Cash and cash equivalents						2,007
Accounts receivable						299
Prepaids and other current assets						43
Inventory						2,572
Biological assets						826
Long-term assets
Capital assets						13,298
Customer relationships						11,730
Corporate website						39
Licences, permits & applications						6,320
Non-competition agreements						1,930
Intellectual property, trademarks & brands						72,490
Goodwill						146,091
Total assets						257,645
Current liabilities
Accounts payable and accrued liabilities						10,455
Income taxes payable						922
Long-term liabilities
Deferred tax liability						25,889
Long-term debt						5,914
Total liabilities						43,180
Total net assets acquired					$	214,465

(i) Share price based on the price of the shares on February 1, 2018.

Net income and comprehensive net income within the prior year for the Company would have been higher by approximately $2,268 if the acquisition had taken place on June 1, 2017. In connection with this transaction, the Company expensed transaction costs of $1,643.

Acquisition of Nuuvera Corp.

On March 23, 2018, the Company completed a definitive arrangement agreement (the “Arrangement Agreement”) pursuant to which the Company acquired Nuuvera, by way of a court-approved plan of arrangement, under the Business Corporations Act (Ontario). The Company acquired 100% of the issued and outstanding common shares (on a fully diluted basis) of Nuuvera for a total consideration of $0.62 in cash plus 0.3546 of an Aphria share for each Nuuvera share held. All of Nuuvera’s outstanding options were exchanged for an equivalent option granted pursuant to Aphria’s stock option plan (each, a “Replacement Option”) to purchase from Aphria the number of common shares (rounded to the nearest whole share) equal to: (i) the exchange ratio multiplied by (ii) the number of Nuuvera shares subject to such Nuuvera Option. Each such Replacement Option shall provide for an exercise price per common share (rounded to the nearest whole cent) equal to: (i) the exercise price per Nuuvera share purchasable pursuant to such Nuuvera Option; divided by (ii) the exchange ratio.

The table below summarizes the fair value of the assets acquired and the liabilities assumed at the effective acquisition date:

	Note	Number of shares	Share price		Amount
Consideration paid
Cash					$	54,604
Shares issued	(i)	31,226,910	$	13.17		411,258
Warrants outstanding	(ii)	1,345,866				1,015
Replacement options issued	(ii)	1,280,330				12,133
						479,010
Fair value of previously held investment
Shares held by Aphria	(i)	1,878,738	$	14.92		28,028
Warrants held by Aphria	(ii)	322,365				243
						28,271
Total fair value of consideration					$	507,281
Net assets acquired
Current assets
Cash and cash equivalents						35,033
Accounts receivable						464
Prepaids and other current assets						1,142
Inventory						401
Long-term assets
Capital assets						4,743
Intellectual property, trademarks & brands						3,700
Licences, permits & applications						131,600
Goodwill						377,221
Total assets						554,304
Current liabilities
Accounts payable and accrued liabilities						11,000
Long-term liabilities
Deferred tax liability						36,023
Total liabilities						47,023
Total net assets acquired					$	507,281

(i) Share price based on the price of the shares on March 23, 2018; shares held by Aphria include the cash consideration paid.

(ii) Options and warrants are valued using the Black-Scholes option pricing model using the following assumptions: the risk-free rate of 2.19%; expected life of 1‑ 10 years; volatility of 30% based on volatility used for similar instruments on the open market; forfeiture rate of nil; dividend yield of nil; and the exercise price of $2.52 - $20.30.

Net income and comprehensive net income within the prior year for the Company would have been lower by approximately $19,611 if the acquisition had taken place on June 1, 2017. In connection with this transaction, the Company expensed transaction costs of $3,439.

Acquisition of LATAM Holdings Inc.

On July 17, 2018, the Company signed a share purchase agreement with Scythian Biosciences Corp. (“Scythian”) to purchase 100% of the issued and outstanding shares of LATAM Holdings Inc. (“LATAM Holdings”); a direct wholly-owned subsidiary of Scythian. As outlined in the share purchase agreement, the negotiated purchase price was to be settled with the issuance of 15,678,310 shares of the Company valued on July 17, 2018 at $193,000 and the assumption of $1,000 USD ($1,310 CAD) short-term liabilities. The acquisition of LATAM Holdings closed on September 27, 2018. Therefore, in accordance with IFRS 3 - Business Combinations, the equity consideration transferred was measured at fair value at the acquisition date, which is the date control was obtained, which in this case was determined to be September 27, 2018. The fair value of the consideration shares on September 27, 2018 was $273,900.

LATAM Holdings, through other subsidiaries, provides the Company with access to the emerging cannabis markets in Latin America and the Caribbean. Through this acquisition, the Company secured key licenses in Colombia, Argentina and Jamaica which is anticipated to provide first mover advantage in these countries. In addition, the Company acquired an option and rights of first refusal to purchase a Brazilian incorporated entity, with the option and right of first refusal vesting only upon the entity obtaining a licence to cultivate and distribute cannabis lawfully in Brazil.

The Company is in the process of assessing the fair value of the net assets acquired and, as a result, the fair value of the net assets acquired may be subject to adjustments pending completion of final valuations and post-closing adjustments. The table below summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed at the effective acquisition date:

	Note	Numberofshares	Shareprice		Amount
Consideration paid
Shares issued	(i)	15,678,310	$	17.47	$	273,900
Total consideration paid					$	273,900
Net assets acquired
Current assets
Cash and cash equivalents						2,704
Accounts receivable						571
Prepaids and other current assets						106
Inventory						65
Long-term assets
Capital assets						494
Licences, permits & applications						123,956
Goodwill						189,188
Total assets						317,084
Current liabilities
Accounts payable and accrued liabilities						1,986
Income taxes payable						20
Long-term liabilities
Deferred tax liability						29,837
Total liabilities						31,843
Non-controlling interest						11,341
Total net assets acquired					$	273,900

(i) Share price based on the price of the shares on September 27th, 2018.

Net income and comprehensive net income for the Company would have been lower by approximately $4,556 for the year ended May 31, 2019, if the acquisition had taken place on June 1, 2018. In connection with this transaction, the Company expensed transaction costs of $1,133.

Acquisition of CC Pharma GmbH

On November 7 ,2018, the Company signed a share purchase agreement to acquire 100% of the issued and outstanding shares of CC Pharma. The purchase price was cash consideration of €18,920  ($28,775 CAD) and additional cash consideration of up to €23,500  ($35,741 CAD) contingent on CC Pharma obtaining a specified EBITDA target. The acquisition of CC Pharma closed on January 9, 2019.

CC Pharma is a leading distributor of pharmaceutical products to pharmacies in Germany as well as throughout Europe. The acquisition of CC Pharma provides the Company access to the cannabis markets in Germany and ultimately pan-European platforms.

The Company is in the process of assessing the fair value of the net assets acquired and, as a result, the fair value of the net assets acquired may be subject to adjustments pending completion of final valuations and post-closing adjustments. The table below summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed at the effective acquisition date:

	Amount
Consideration
Cash	$	28,775
Contingent consideration		35,741
Total consideration	$	64,516
Net assets acquired
Current assets
Cash and cash equivalents		7,237
Accounts receivable		33,989
Prepaids and other current assets		14,616
Inventory		28,352
Long-term assets
Capital assets		6,373
Customer relationships		21,300
Non-compete agreements		1,400
Intellectual property, trademarks & brands		16,200
Goodwill		6,146
Total assets		135,613
Current liabilities
Bank loans and overdrafts		20,255
Accounts payable and accrued liabilities		44,111
Income taxes payable		672
Long-term liabilities
Deferred tax liability		6,059
Total liabilities		71,097
Total net assets acquired	$	64,516

Revenue and net income and comprehensive net income for the Company would have been higher by approximately $367,200 and $9,955 respectively, for the year ended May 31, 2019, if the acquisition had taken place on June 1, 2018. In connection with this transaction, the Company expensed transaction costs of $595.

Goodwill is comprised of:

	May 31,		May 31,
	2019		2018
CannWay goodwill	$	1,200	$	1,200
Broken Coast goodwill		146,091		145,794
Nuuvera goodwill		377,221		375,768
LATAM goodwill		139,188		—
CC Pharma goodwill		6,146		—
	$	669,846	$	522,762

During the year ended May 31, 2019, an independent third party completed their review of the LATAM acquisition, which provided the Company with new information. In accordance with IAS 36, the Company completed an impairment analysis and determined the fair value of the assets based on a discounted cash flow approach for the three operating entities acquired in the transaction; Colcanna S.A.S (“Colcanna”), ABP, S.A. (“ABP”) and Marigold Projects Jamaica Limited (“Marigold”).

As a result of new information obtained from the independent third party’s review, the Company determined some changes in the projected cashflows were appropriate and adjusted the discount rates used in the discounted cash flow approach from 31.0%,  21.3%, and 36.5% to 33.0%,  23.3%, and 38.5% for Colcanna, ABP and Marigold respectively. Based on the determined fair value, the Company recognized $50,000 in impairment of goodwill. Also included in impairment is £4,600 GBP ($8,039 CAD) related to uncollectible promissory notes receivable (Note 15) for a total impairment of $58,039.

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Convertible notes receivable

12 Months Ended

May 31, 2019

Convertible notes receivable

Convertible notes receivable

12.    Convertible notes receivable

	May 31,		May 31,
	2019		2018
Copperstate Farms Investors, LLC	$	—	$	1,942
HydRx Farms Ltd. (d/b/a Scientus Pharma)		11,500		16,129
Fire & Flower Inc.		11,166		—
10330698 Canada Ltd. (d/b/a Starbuds)		5,204		—
High Tide Inc.		4,360		—
		32,230		18,071
Deduct - current portion		(11,500)		(1,942)
	$	20,730	$	16,129

Copperstate Farms Investors, LLC

On May 15, 2018, the Company entered into an amendment agreement with CSF which extended the maturity date and automatic conversion date to June 30, 2018, which was subsequently extended into July. As at May 31, 2019, this note was paid in full.

HydRx Farms Ltd. (d/b/a Scientus Pharma)

On August 14, 2017, Aphria purchased $11,500 in secured convertible debentures of Scientus Pharma (“SP”). The convertible debenture bears interest at 8%, paid semi-annually, matures in two years and includes the right to convert the debenture into common shares of SP at $2.75 per common share at any time before maturity. SP maintains the option of forced conversion of the convertible debenture if the common shares of SP trade on a stock exchange at a value of $3.02 or more for 30 consecutive days. The Company maintains a first charge on all assets of SP. In October 2018, the Company agreed to share its first charge on all assets of SP with a third party on a pari passu basis. The Company understands that the third party has not completed a transaction with SP. As at May 31, 2019, the third party has not completed its investment.

As at May 31, 2019, the fair value of the Company's secured convertible debenture was $11,500, which resulted in a fair value loss for the year ended May 31, 2019 of $4,629.

Fire & Flower Inc.

On July 26, 2018, Aphria purchased $10,000 in unsecured convertible debentures of Fire & Flower Inc. (“F&F”). The convertible debentures bear interest at 8% per annum compounded, accrued and paid semi-annually in arrears. The debentures mature on July 31, 2020, at which point, they automatically convert into common shares of F&F at the lower of $1.15 and the share price on July 31, 2020. The debentures may also be converted into a loan on July 31, 2020 bearing interest at 12%, at the holder’s option.

As at May 31, 2019, the fair value of the unsecured convertible debenture was $11,166, which resulted in a fair value loss for the year ended May 31, 2019 of $1,166.

10330698 Canada Ltd. (d/b/a Starbuds)

On December 28, 2018, Aphria purchased $5,000 in secured convertible debentures of Starbuds. The convertible debentures bear interest at 8.5% per annum accruing daily due on the December 28, 2020. The debentures are secured against the assets of Starbuds. The debentures and any accrued and unpaid interest are convertible into common shares for $0.50 per common share and mature on December 28, 2020.

As at May 31, 2019, the fair value of the Company's secured convertible debenture was $5,204, which resulted in a fair value loss for the year ended May 31, 2019 of $204.

High Tide Inc.

On April 10, 2019, Aphria purchased $4,500 in unsecured convertible debentures of High Tide Inc. (“High Tide”). The convertible debentures bear interest at 10% per annum, payable annually up front in common shares of High Tide based on the 10‑day volume weighted average price (the “Debentures”). The debentures mature on April 10, 2021, they are convertible into common shares of High Tide at a price of $0.75 at the option of the holder.In addition to the debentures the Company received 6,000,000 warrants in High Tide as part of the purchase of the unsecured convertible debentures (Note 15).

As at May 31, 2019, the fair value of the unsecured convertible debenture was $4,360, which resulted in a fair value loss for the year ended May 31, 2019 of $140.

Convertible notes receivable

During the year ended May 31, 2019, the Company purchased a total of $19,500 (2018 - $14,001) in convertible notes. The unrealized (loss) gain on convertible notes receivable recognized in the results of operations amounts to $(3,399) for the year ended May 31, 2019 (2018 - $5,943).

The fair value was determined using the Black-Scholes option pricing model using the following assumptions: the risk-free rate of 0.85- 1.51%; expected life of the convertible note; volatility of 70% based on comparable companies; forfeiture rate of nil; dividend yield of nil; and, the exercise price of the respective conversion feature.

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Interest in equity investees

12 Months Ended

May 31, 2019

Interest in equity investees

Interest in equity investees

13.    Interest in equity investees

	May 31,		May 31,
	2019		2018
Associated company
Althea Company Pty Ltd.	$	9,311	$	4,966
	$	9,311	$	4,966

Althea Company Pty Ltd. (“Althea”)

As at May 31, 2019 the Company held 50,750,000 common shares of Althea (May 31, 2018 - 4,500) representing an ownership interest of 25% (May 31, 2018 - 37.5%).

The following table summarizes the financial of the Company’s associate and reflects the amounts presented in the financial statements. of Althea, amended to reflect adjustments made by the Company when using the equity method, including fair value adjustments and modifications for differences in accounting policy.

	March 31,		March 31,
	2019		2018
Current assets	$	18,210	$	3,857
Non-current assets		1,125		3
Current liabilities		(655)		(14)
Non-current liabilities		—		—
Net assets	$	18,680	$	3,846

For the period from April 1, 2018 to March 31, 2019 the investee, Althea, reported a net loss of $4,368 AUD on its financial statements. In accordance with the equity method, the Company recorded a loss of $1,123, for the year ended May 31, 2019, from its investee relative to its ownership of the outstanding common shares at the time.

During the year, Althea completed a share split of 7,500 shares for each existing share. Althea also issued 101,310,000 common shares for total proceeds of $19,650 AUD. The Company participated in the financing of Althea contributing $3,400 AUD ($3,258 CAD) of the total $19,650 AUD raised. This additional raise reduced the Company’s ownership interest in Althea from 37.5% to 25% and accordingly, the Company recognized a gain on dilution of $2,210. The fair value of the shares as at May 31, 2019 is $36,032 AUD ($33,776 CAD) based on the closing share price of Althea.

	May 31,		May 31,
	2019		2018
Reconciliation to carrying amount:
Opening balance	$	4,966	$	—
Transfer from long-term investments		—		2,483
Cash contributions, net of share issuance costs		3,258		2,497
Gain on account of dilution of ownership		2,210		—
Share of reported net loss		(1,123)		(14)
Closing balance	$	9,311	$	4,966

Liberty Health Sciences Inc.

In February 2018, the Company entered into a call/put obligation (“Obligation Agreement”) for the remaining shares held in Liberty, which were subject to CSE mandatory escrow requirements. As each new tranche of shares became freely trading, the Obligation Agreement resulted in the buyers acquiring the newly freely trading shares at an 18% discount to the market price of Liberty, based on Liberty’s 10‑day volume weighted trading price.

The Obligation Agreement included an opt-out for Aphria’s benefit, in the event that the Toronto Stock Exchange amended their regulations such that it permitted investments by Canadian companies in U.S. based cannabis businesses, and in such instance, the Obligation Agreement would be automatically terminated. In exchange for the opt-out, the Company agreed to pay the buyers a $2,500 termination fee.

Based on the terms of the Obligation Agreement, the Company determined that the remaining shares held in Liberty met the requirements under IFRS 5 and were reclassified from interest in equity investees to assets held for sale. The Company ceased accounting for the investment as an equity investment as of November 30, 2017 and transferred the carrying value to assets held for sale.

In July 2018, 16,029,615 shares were released from escrow and sold as part of the Obligation Agreement. The Company received gross proceeds of $11,514 and recognized a gain on sale of equity investee of $9,880. As part of the transaction, the Company paid $480 in exchange for an option to buy back the shares at $1.00 a share, subject to certain downside risk protection which results in the purchaser sharing a portion of the difference between the share price on the day the option is exercised and the exercise price, provided the share price exceeds $1.25. The option to repurchase the shares was subject to the following conditions (collectively, the enumerated conditions (1) through (5), the “Conditions”):

(1) Cannabis becoming legalized federally in the United States; and One or more of the following conditions have been satisfied:

(2) The TSX has provided its approval for the purchase of the U.S. cannabis assets;

(3) The TSX revises its rules such that it no longer has a prohibition against its listed companies having an interest in US assets which are involved in the cannabis business;

(4) The common shares of the Company are voluntarily or involuntarily delisted from the TSX; and/or

(5) The Company is acquired by another entity, provided that the common shares of the Company will be delisted from the TSX upon the change of control.

This option was initially included in long-term investments (Note 14).

During the prior quarter, the Company and the third party agreed to terminate the Obligation Agreement, in exchange for a $1,000 termination fee. The Company then entered into a share purchase agreement to divest of the remaining 64,118,462 Liberty shares in exchange for consideration in the form of a promissory note in the amount of $59,098, bearing interest at a rate of 12% due in 5 years (Note 15). As a security for the promissory note, the Liberty shares were placed in trust with an escrow agent. The purchaser was able to remove the Liberty shares from the escrow at any time by paying off the promissory note. In the event that the Company enforces the security, the escrow agent was to return the shares to the Company, provided that the Conditions were met. In the event they were not met, the escrow agent was to transfer the securities to a third-party investment bank for liquidation, with the proceeds of liquidation delivered to the Company. Simultaneously with this sale, the Company entered into an option agreement to repurchase the Liberty shares for the amount of the promissory note (Note 14). The Company agreed to pay an annual fee equal to 12.975% of the face value of the promissory note to maintain this option (Note 20). The option to repurchase the shares was subject to the Conditions described above. During the year ended May 31, 2019, the Company reported a gain on sale of equity investee of $57,351.

On February 19, 2019, the Company and the third party agreed to liquidate the promissory note, security agreement and the option in exchange for a cash payment of $47,448 and a contingent payment up to $10,000, in the event the third party monetizes the assets held under the option within six (6) months of the transaction date. As the satisfaction of these conditions require actions outside of the Company’s control, the Company has not allocated any value to the contingent consideration.

For the year ended May 31, 2018, the Company reported a total gain on dilution of ownership in equity investee of $7,535. Prior to the Company no longer recording Liberty as an equity investee, Liberty reported a net loss of $24,671 and a net comprehensive loss of $26,798. In accordance with the equity method, the Company recorded a loss of $9,281 and other comprehensive loss of $801.

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Long-term investments

12 Months Ended

May 31, 2019

Long-term investments

Long-term investments

14.    Long-term investments

	Cost		Fair value						Subtotal				Fair value
	May 31,		May 31,				Divesture/		May 31,		Change in		May 31,
	2018		2018		Investment		Transfer		2019		fair value		2019
Level 1 on fair value hierarchy
CannaRoyalty Corp.	$	1,500	$	3,765	$	—	$	(3,765)	$	—	$	—	$	—
MassRoots, Inc.		304		164		—		(164)		—		—		—
Tetra Bio-Pharma Inc.		2,300		6,800		16,757		—		23,557		(6,341)		17,216
Hiku Brands Company Ltd.		9,775		13,558		—		(13,558)		—		—		—
Scythian Biosciences Corp.		9,349		8,603		298		(8,901)		—		—		—
National Access Cannabis Corp.		1,093		710		10,481		—		11,191		(4,044)		7,147
Aleafia Health Inc.		—		—		10,000		—		10,000		(1,555)		8,445
Rapid Dose Therapeutics Inc.		—		—		5,400		—		5,400		432		5,832
Fire & Flower Inc.		—		—		3,416		—		3,416		(593)		2,823
High Tide Inc.		—		—		450		—		450		(110)		340
		24,321		33,600		46,802		(26,388)		54,014		(12,211)		41,803
Level 2 on fair value hierarchy
Hiku Brands Company Ltd.		2,336		1,906		16,787		(18,693)		—		—		—
Scythian Biosciences Corp.		3,153		661		—		(661)		—		—		—
		5,489		2,567		16,787		(19,354)		—		—		—
Level 3 on fair value hierarchy
Copperstate Farms, LLC		1,755		5,300		—		(5,300)		—		—		—
Copperstate Farms Investors, LLC		9,407		14,700		—		(14,700)		—		—		—
Resolve Digital Health Inc.		718		3,300		—		—		3,300		(2,200)		1,100
Resolve Digital Health Inc.		282		1,916		—		—		1,916		(1,634)		282
Green Acre Capital Fund I		1,600		2,042		400		—		2,442		1,848		4,290
Green Acre Capital Fund II		—		—		3,000		(3,000)		—		—		—
Green Tank Holdings Corp.		650		647		1,240		—		1,887		3,447		5,334
IBBZ Krankenhaus GmbH		1,956		1,956		—		—		1,956		9		1,965
Greenwell Brands GmbH		—		—		152		—		152		1		153
HighArchy Ventures Ltd.		—		—		9,995		—		9,995		—		9,995
US legalization options		—		—		54,762		(54,762)		—		—		—
		16,368		29,861		69,549		(77,762)		21,648		1,471		23,119
Deduct - assets held for sale		(11,162)		(20,000)		—		20,000		—		—		—
	$	35,016	$	46,028	$	133,138	$	(103,504)	$	75,662	$	(10,740)	$	64,922

The fair value attached to warrants in both Level 2 and Level 3 were determined using the Black-Scholes option pricing model using the following assumptions: risk-free rate of 0.75‑1.70% on the date of grant; expected life of 1 and 2 years; volatility of 70% based on comparable companies; forfeiture rate of 0%; dividend yield of nil ; and, the exercise price of the respective warrant.

CannaRoyalty Corp. (“CR”)

During the year ended May 31, 2019, the Company sold its remaining 750,000 shares of CR for proceeds of $4,111, resulting in an accounting gain of $346 (Note 28).

MassRoots, Inc.

During the year ended May 31, 2019, the Company sold its remaining 500,000 common shares in MassRoots, Inc. for proceeds of $1, resulting in a loss of $163 (Note 28).

Tetra Bio-Pharma Inc.

During the year ended May 31, 2019, the Company purchased an additional 6,900,000 units of Tetra Bio-Pharma Inc. at a total cost of $7,107. Each unit is comprised of one Class A common share and one common share purchase warrant with an exercise price of $1.29 expiring November 2021.

During the year, the Company purchased 10,000,000 common shares of Tetra Bio-Pharma Inc. at a total cost of $9,650.

The Company owns 26,900,000 common shares and 6,900,000 warrants at a cost of $19,057, with a fair value of $17,216 as at May 31, 2019.

Hiku Brands Company Ltd (formerly TS BrandCo Holdings Inc.)

During the year ended May 31, 2019, the Company exercised its 7,993,605 warrants at $2.10 per warrant. Subsequent to exercising its warrants the Company sold all of its shares of Hiku in exchange for $48,153, resulting in a gain on disposal of $15,902 (Note 28).

As part of the purchase of Hiku by a third party, the third party terminated the Hiku supply agreement with the Company. The third party purported to terminate the Tokyo Smoke supply agreement with the Company at approximately the same time.

Scythian Biosciences Inc.

During the year ended May 31, 2019, the Company purchased 123,800 common shares of Scythian at a total cost of $298. During the year, the Company sold its 2,812,300 common shares and 672,125 common share purchase warrants in Scythian in exchange for $6,609, resulting in a loss on disposal of $2,953 (Note 28).

National Access Cannabis

During the year ended May 31, 2019, the Company purchased 10,344,505 common shares of National Access Cannabis Corp. at a total cost of $10,481. The Company owns 11,344,505 common shares in NAC at a cost of $11,574, with a fair value of $7,941 as at May 31, 2019.

Aleafia Health Inc. (formerly Emblem Corp.) (“Aleafia”)

During the year end May 31, 2019, the Company entered into a 5‑year supply agreement with Emblem Corp. As part of the supply agreement the Company received 6,952,169 common shares to satisfy a deposit valued at $10,000. During the year, Emblem Corp. was purchased by a third party, Aleafia Health Inc. (“Aleafia”). The Company’s shares in Emblem Corp. translated into 5,823,831 shares of Aleafia. The Company owns 5,823,831 common shares in Aleafia at a cost of $10,000, with a fair value of $8,445 as at May 31, 2019. The shares are subject to various hold restrictions tied to terms within the supply agreement.

Rapid Dose Therapeutics Inc. (“RDT”)

In August 2018, the Company entered into a subscription agreement with RDT for the purchase of 7,200,000 common shares, for a total cost of $5,400, with a fair value of $5,832 as at May 31, 2019. During the year, RDT’s common shares began trading on the Canadian Stock Exchange. The Company reclassified this investment from level 3 on fair value hierarchy to level 1 during the year.

Fire & Flower Inc.

In October 2018, the Company entered into a subscription agreement with Fire & Flower Inc. for the purchase of 2,277,000 common shares, for a total cost of $3,416 with a fair value of $2,823 as at May 31, 2019. During the year, Fire & Flower Inc.’s common shares began trading on the Toronto Stock Exchange Venture.

High Tide Inc.

During the year ended May 31, 2019, the Company received 6,000,000 warrants in High Tide as part of the purchase of convertible debentures (Note 12), and 943,396 common shares of High Tide Inc. as a payment for interest on the convertible notes receivable (Note 12). The Company owns 943,396 common shares and 6,000,000 warrants in High Tide Inc. at a cost of  $450, with a fair value of $340 as at May 31, 2019. Each warrant is exercisable at $0.85 per warrant expiring April 18, 2021.

US legalization options

During the year ended May 31, 2019, the Company purchased an option to acquire 16,029,615 Liberty shares at $1.00 a share, expiring January 23, 2020. This option includes specific downside risk protection in which the purchaser will share a portion of the difference between the share price on the day the option is exercised and the exercise price, provided the share price exceeds $1.25. The cost of the option was $480. The option to repurchase the shares was subject to the Conditions described in note 13.

During the year, the Company entered into an option agreement to repurchase 64,118,462 Liberty shares in exchange for settlement of a promissory note receivable, expiring September 6, 2023 (Note 13). The cost of this option was a gross annual fee of $7,668, however the Company also received $7,092 of interest income associated with the promissory note receivable, resulting in a net annual cost to the Company of $576. The option to repurchase the shares was subject to the Conditions described in note 13.

During the year, the Company liquidated the option and promissory note for cash proceeds of $47,448, with a contingent fee owing of up to $10,000 upon satisfaction of certain conditions. As the satisfaction of these conditions require actions outside of the Company’s control, the Company has not allocated any value to the contingent consideration.

During the year, the Company contributed assets with a fair value of $55,000 to GA Opportunities Corp. Simultaneously, the Company entered into an option agreement to purchase all of the assets owned by GA Opportunities Corp. at a cost of $55,000, expiring September 24, 2023. The cost of this option is a gross fee of $6,765, however the Company also receives $6,600 of interest income associated with the promissory note receivable, resulting in a net annual cost to the Company of $165. In the event the securities in the fund represent direct or indirect ownership of, or investment in, entities engaging in activities related to the cultivation, distribution or possession of cannabis in the United States, the option to purchase the securities was subject to the Conditions described in note 13.

During the year, the Company liquidated the option and promissory note for cash proceeds of $89,000, with $39,000 of the proceeds due within six months (Note 28 and Note 15).

Copperstate Farms, LLC (“Copperstate”) and Copperstate Farms Investors, LLC (“CSF”)

During the year, the Company received $20,000 from the sale of the shares of Copperstate and CSF, which were previously held as available for sale.

Resolve Digital Health Inc. (“Resolve”)

The Company owns 2,200,026 common shares and 2,200,026 warrants in Resolve at a total cost of $1,000, with a fair value of $1,382 as at May 31, 2019. The Company determined the fair value of its investment based on its net realizable value. Each warrant is exercisable at $0.65 per warrant expiring December 1, 2021.

Green Acre Capital Fund I

The Company committed and invested $2,000 to Green Acre Capital Fund I. The Company determined the fair value of its investment, based on its proportionate share of net assets, to be $4,290 as at May 31, 2019. During the year, the Company received a return of capital of $700 from this investment.

Green Acre Capital Fund II

During the year, the Company committed to a $15,000 investment in Green Acre Capital Fund II, and as of the balance sheet date, has funded $3,000. During the current quarter, the Company and Green Acre Capital Fund II agreed to end the Company’s involvement with the fund. The Company and Green Acre Capital Fund II agreed that the Company would no longer be committed to fund the remaining amount of its investment and in exchange, the Company agreed to sell its interest in the fund to the limited partners for $500, resulting in a loss of 2,500 (Note 28).

Green Tank Holdings Corp. (“Green Tank”)

During the year Green Tank completed a 12:1 share split, which resulted in the Company obtaining an additional 1,082,675 shares at no additional cost. The Company purchased an additional 359,208 shares of Green Tank for a cost of $920 USD ($1,240 CAD). The Company owns 1,540,308 preferred shares in Green Tank for a total cost of $1,420 USD ($1,890 CAD), with a fair value of $3,943 USD ($5,334 CAD). The Company determined the fair value of its investment, based on Green Tank’s most recent financing.

IBBZ Krankenhaus GmbH Klinik Hygiea (“Krankenhaus”)

The Company owns 25.1% of Krankenhaus, which is the owner and operator of Berlin-based Schöneberg Hospital, for €1,294  ($1,956 CAD). Through this investment, the Company is entitled to 5% of the net income (loss) for the years 2018 to 2021, and 10% of the net income (loss) for the period thereafter. The Company determined that the fair value of its investment, based on Krankenhaus’ most recent financing at the same price, is equal to its carrying value. The Company recognized a loss from the change in fair value of $(5) due to changes in the foreign exchange rate.

Greenwell Brands GmbH (“Greenwell”)

In September 2018, the Company entered into an investment and shareholder agreement with Greenwell for the purchase of 1,250 common shares, for a total cost of €100  ($152 CAD). The Company determined that the fair value of its investment, based on the most recent financing at the same price, is equal to its carrying value.

HighArchy Ventures Ltd.

In October 2018, the Company entered into a subscription agreement with HighArchy Ventures Ltd. for the purchase of 1,999 Class A shares and 1,999 Class B shares, for a total cost of $9,995. During the year HighArchy Ventures Ltd. completed a share split of 10,000 to 1.The Company determined that the fair value of its investment, based on the most recent financing at the same price, is equal to its carrying value.

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Promissory notes receivable

12 Months Ended

May 31, 2019

Promissory notes receivable

Promissory notes receivable

15.    Promissory notes receivable

	May 31,				Disposal/		May 31,
	2018		Additions		Impairment		2019
September 6, 2018 - $59,098 - 12%, due September 6, 2023	$	—	$	59,098	$	(59,098)	$	—
September 24, 2018 - $55,000 - 12%, due September 24, 2023		—		55,000		(55,000)		—
May 15, 2019 - $39,000 - 3%, due October 15, 2019		—		39,000		—		39,000
October 11, 2018 - GBP £4,600 - 3.25%, due October 11, 2021		—		7,952		(7,952)		—
October 31, 2018 - $6,609 - 12%, due October 31, 2023		—		6,609		(6,609)		—
November 1, 2018 - $200 - interest free, due May 1, 2020		—		200		—		200
	$	—	$	167,859	$	(128,659)	$	39,200

During the year, the Company impaired the promissory note receivable of £4,600 GBP to $nil (Note 11).

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Income taxes and deferred income taxes

12 Months Ended

May 31, 2019

Income taxes and deferred income taxes

Income taxes and deferred income taxes

16.    Income taxes and deferred income taxes

A reconciliation of income taxes at the statutory rate with the reported taxes is as follows:

	For the year ended
	May 31,
	2019			2018
Income (loss) before income taxes (recovery)	$	(15,645)		$	35,856
Statutory rate		26.5	%		26.5	%
Expected income tax expense (recovery) at combined basic federal and provincial tax rate		(4,146)			9,502
Effect on income taxes of:
Foreign tax differential		(539)			—
Permanent differences		1,137			65
Non-deductible share-based compensation and other expenses		20,161			4,737
Non-taxable portion of losses (gains)		(15,504)			(7,162)
Other		(648)			(768)
Tax assets not recognized		393			34
	$	854		$	6,408
Income tax expense (recovery) is comprised of:
Current	$	4,944		$	2,750
Future		(4,090)			3,658
	$	854		$	6,408

The following table summarizes the components of deferred tax:

	May 31,		May 31,
	2019		2018
Deferred tax assets
Non-capital loss carry forward	$	20,133	$	4,567
Capital loss carry forward		—		405
Share issuance and financing fees		9,689		5,443
Unrealized loss		—		916
Other		1,102		27
Deferred tax liabilities
Net book value in excess of undepreciated capital cost		(2,751)		(1,017)
Intangible assets in excess of tax costs		(101,271)		(64,120)
Unrealized gain		(6,534)		(1,097)
Biological assets and inventory in excess of tax costs		(8,001)		(4,377)
Net deferred tax assets (liabilities)	$	(87,633)	$	(59,253)

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Bank indebtedness

12 Months Ended

May 31, 2019

Bank indebtedness

Bank indebtedness

17.    Bank indebtedness

The Company secured an operating line of credit in the amount of $1,000 which bears interest at the lender’s prime rate plus 75 basis points. As of the May 31, 2019, the Company has not drawn on the line of credit. The operating line of credit is secured by a first charge on the property at 265 Talbot St. West, Leamington, Ontario and a first ranking position on a general security agreement.

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Promissory note payable

12 Months Ended

May 31, 2019

Promissory note payable

Promissory note payable

18.    Promissory note payable

During the prior year, the Company entered into a promissory note with Althea for $700 AUD ($686), as part of the purchase of Althea common shares (Note 14), the note is due and payable on December 31, 2020. The Company reached an agreement with Althea where the promissory note amount will be used by Althea to purchase products from the Company in connection with a supply agreement entered into in September 2017.

	May 31,		May 31,
	2019		2018
Note payable to Althea Company Pty Ltd - $700 AUD ($686), opening balance, non-interest bearing, due and payable on December 31, 2020	$	610	$	686
Reduction of Promissory note payable ba006Cance with respect to products provided		(581)		(63)
Foreign exchange (gain) loss		(29)		(13)
Balance remaining		—		610
Deduct - principal portion included in current liabilities		—		(610)
	$	—	$	—

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Long-term debt

12 Months Ended

May 31, 2019

Long-term debt

Long-term debt

19.    Long-term debt

	May 31,		May 31,
	2019		2018
Term loan - $25,000 - Canadian Five Year Bond interest rate plus 2.73% with a minimum 4.50%,  5 year term, with a 15-year amortization, repayable in blended monthly payments, due in July 2023	$	24,022	$	—
Term loan - $25,000 - 3.95%, compounded monthly, 5 year term with a 15-year amortization, repayable in equal monthly instalments of $188 including interest, due in April 2022		23,352		24,107
Term loan - $1,250 - 3.99%,  5-year term, with a 10-year amortization, repayable in equal monthly instalments of $13 including interest, due in July 2021		946		1,057
Mortgage payable - $3,750 - 3.95%,  5-year term, with a 20-year amortization, repayable in equal monthly instalments of $23 including interest, due in July 2021		3,380		3,515
Vendor take-back mortgage owed to related party - $2,850 - 6.75%,  5-year term, repayable in equal monthly instalments of $56 including interest, due in June 2021		1,305		1,869
Term loan - €5,000 - Euro Interbank Offered Rate + 1.79%,  5-year term, repayable in quarterly instalments of €250 plus interest, due in December 2023		7,169		—
Term loan - €5,000 - Euro Interbank Offered Rate + 2.68%,  5-year term, repayable in quarterly instalments of €250 plus interest, due in December 2023		7,169		—
		67,343		30,548
Deduct - unamortized financing fees		(116)		(71)
- principal portion included in current liabilities		(6,332)		(2,140)
	$	60,895	$	28,337

Total long-term debt repayments are as follows:

Next 12 months	$	6,332
2 years		6,499
3 years		6,039
4 years		6,119
5 years		6,259
Thereafter		36,095
Balance of obligation	$	67,343

The term loan of $24,022 was entered into on July 27, 2018 and is secured by a first charge on the property at 223, 231, 239, 265, 269, 271 and 275 Talbot Street West, Leamington Ontario, a first position on a general security agreement, and an assignment of fire insurance to the lender. Principal payments started on the term loan in August 2018. The effective interest rate during the year was 4.68%.

The term loan of $23,352 was entered into on May 9, 2017 and is secured by a first charge on the property at 265 Talbot Street West, Leamington Ontario, a first position on a general security agreement, and an assignment of fire insurance to the lender. Principal payments started on the term loan in March 2018.

The term loan of $946 and mortgage payable of $3,380 were entered into on July 22, 2016 and are secured by a first charge on the property at 265 Talbot Street West, Leamington, Ontario and a first position on a general security agreement.

The vendor take-back mortgage payable of $1,305, owed to a former director of the Company, was entered into on June 30, 2016 in conjunction with the acquisition of the property at 265 Talbot Street West. The mortgage is secured by a second charge on the property at 265 Talbot Street West, Leamington, Ontario.

The Company acquired term loans of $3,000 and $1,201, and a mortgage payable of $1,713 as part of the acquisition of Broken Coast (Note 11). These loans and mortgages were paid in full during the prior year.

The Company acquired term loans initially up to €17,000  ($25,460 CAD) as part of the acquisition of CC Pharma (Note 11). As at May 31, 2019, the Company had amounts outstanding of €9,500 ($14,338 CAD). These term loans are secured against the distribution inventory held by CC Pharma.

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Convertible debentures

12 Months Ended

May 31, 2019

Convertible debentures

Convertible debentures

20.    Convertible debentures

	May 31,		May 31,
	2019		2018
Opening balance	$	—	$	—
Principal amount issued		469,805		—
Fair value adjustment		(48,439)		—
Closing balance	$	421,366	$	—

The convertible debentures were entered into in April 2019, the unsecured convertible debentures in the principal amount of $350,000 USD are due in five years from issuance (the “Notes”). The Notes bear interest at a rate of 5.25% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. The Notes are an unsecured obligation and ranked senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the Notes. The Notes will rank equal in right of payment with all liabilities that are not subordinated. The Notes are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness.

Holders of the Notes may convert all or any portion of their Notes, in multiples of $1 principal amount, at their option at any time between December 1, 2023 to the maturity date. The initial conversion rate for the Notes will be 106.5644 common shares of Aphria per $1 USD principal amount of Notes, which will be settled in cash, common shares of Aphria or a combination thereof, at Aphria’s election. This is equivalent to an initial conversion price of approximately $9.38 per common share, subject to adjustments in certain events. In addition, holders of the Notes may convert all or any portion of their Notes, in multiples of $1 principal amount, at their option at any time preceding December 1, 2023, if:

(a) the last reported sales price of the common shares for at least 20 trading days  during a period of 30 consecutive trading days immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

(b) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1 principal amount of the Notes for each trading day of the measurement period is less than 98% of the product of the last reported sale price of the Company’s common shares and the conversion rate on each such trading day;

(c) the Company call any or all of the Notes for redemption or;

(d) upon occurrence of specified corporate event.

The Company may not redeem the Notes prior to June 6, 2022, except upon the occurrence of certain changes in tax laws. On or after June 6, 2022, the Company may redeem for cash all or part of the Notes, at its option, if the last reported sale price of the Company’s common shares has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending on and including trading day immediately preceding the date won which the Company provide notice of redemption. The redemption of Notes will be equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

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Share capital

12 Months Ended

May 31, 2019

Share capital

Share capital

21.    Share capital

The Company is authorized to issue an unlimited number of common shares. As at May 31, 2019, the Company has issued 250,989,120 shares, of which 600,000 shares were held and subject to various escrow agreements.

	Number of
Common Shares	shares	Amount
Balance at May 31, 2018	210,169,924	$	1,113,981
June 2018 bought deal, net of cash issuance costs	21,835,510		245,925
Broken Coast acquisition	19,963		297
LATAM acquisition	15,678,310		273,900
Warrants exercised	550,335		1,762
Options exercised	2,632,078		15,029
DSUs exercised	103,000		953
Income tax recovery on share issuance costs	—		3,426
	250,989,120	$	1,655,273

a) Throughout the year, 550,335 warrants with exercise prices ranging from $1.50 to $20.30 were exercised for a value of $1,762 including any cash consideration.

b) Throughout the year, 2,632,078 shares were issued from the exercise of stock options with exercise prices ranging from $0.60 to $20.19 for a value of $15,029, including any cash consideration.

c) Throughout the year, 103,000 shares were issued in accordance with the deferred share unit plan to former directors of the Company.

d) In June 2018, the Company closed a bought deal financing in which it issued 21,835,510 common shares at a purchase price of $11.85 per share for $245,925 net of cash issuance costs.

e) During the year, the Company agreed to terms to acquire the remaining 0.14% of Broken Coast (Note 11) and accordingly, the Company agreed to issue 19,963 shares.

f) In September 2018, the Company completed the acquisition of LATAM (Note 11) in which it issued 15,678,310 common shares at a purchase price of $17.47 per share for $273,900.

g) During the year, the Company recognized a $3,426 income tax recovery on share issuance costs.

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Warrants

12 Months Ended

May 31, 2019

Warrants

Warrants

22.    Warrants

The warrant details of the Company are as follows:

Type of warrant	Expiry date	Number of warrants	Weighted average price		Amount
Warrant	December 2, 2019	798,997		1.50		—
Warrant	September 26, 2021	200,000		3.14		360
Nuuvera warrant	February 14, 2020	1,293,803		20.30		976
		2,292,800	$	12.25	$	1,336

	May 31,			May 31,
	2019			2018
	Number of warrants	Weighted average price		Number of warrants	Weighted average price
Outstanding, beginning of the year	2,843,138	$	10.52	3,885,908	$	1.61
Issued during the year	—		—	1,345,866		20.30
Exercised during the year	(550,335)		3.29	(2,388,636)		1.54
Cancelled during the year	(3)		1.75	—		—
Outstanding, end of the year	2,292,800	$	12.25	2,843,138	$	10.52

In March 2018, the Company completed the acquisition of Nuuvera (Note 11) in which it reserved 1,345,866 common shares for issuance to the holders of certain common share purchase warrants of Nuuvera (“Nuuvera Warrants”). There are 3,795,450 Nuuvera Warrants, exercisable for Nuuvera shares at an exercise price of $7.20 per share, the Nuuvera shares would convert to 0.3546 Aphria shares and $0.62 cash.

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Stock options

12 Months Ended

May 31, 2019

Stock options

Stock options

23.    Stock options

The Company adopted a stock option plan under which it is authorized to grant options to officers, directors, employees and consultants enabling them to acquire common shares of the Company. The maximum number of common shares reserved for issuance of stock options that can be granted under the plan is 10% of the issued and outstanding common shares of the Company. The options granted can be exercised for up to a maximum of 10 years and vest as determined by the Board of Directors. The exercise price of each option can not be less than the market price of the common shares on the date of grant.

The Company recognized a share-based compensation expense of $24,078 during the year ended May 31, 2019 (2018 - $15,780). The total fair value of options granted during the year was $21,952 (2018 - $28,912).

	May 31,			May 31,
	2019			2018
	Number of	Weighted		Number of	Weighted
	options	average price		options	average price
Outstanding, beginning of the year	8,956,195	$	7.60	5,926,001	$	1.99
Exercised during the year	(3,164,174)		4.05	(2,637,363)		2.30
Issued during the year	3,005,000		13.05	6,703,330		11.12
Cancelled during the year	(982,025)		8.27	(1,035,773)		11.77
Outstanding, end of the year	7,814,996	$	11.05	8,956,195	$	7.60
Exercisable, end of the year	4,474,966	$	9.54	4,507,696	$	4.04

In June 2018, the Company issued 250,000 stock options at an exercise price of $11.78 per share, exercisable for 3 years to officers of the Company. 83,331 vested immediately and the remainder vest over 2 years. As at May 31, 2019 133,335 of these options have been cancelled.

In July 2018, the Company issued 820,000 stock options at an exercise price between $11.51 and $11.85 per share, exercisable for 5 years to employees of the Company. 50,000 vested immediately and the remainder vest over 3 years. As at May 31, 2019 50,000 of these options have been cancelled.

In September 2018, the Company issued 250,000 stock options at an exercise price of $19.38, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years. As at May 31, 2019 33,334 of these options have been cancelled.

In October 2018, the Company issued 80,000 stock options at an exercise price of $19.70, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years.

In February 2019, the Company issued 1,525,000 stock options at an exercise price between $9.92 and $13.31, exercisable for 3 to 5 years to officers and employees of the Company. 1,100,000 vested immediately and the remainder vest over 3 years. As at May 31, 2019 30,000 of these options have been cancelled.

In April 2019, the Company issued 80,000 stock options at an exercise price of  $11.45, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years.

The outstanding option details of the Company are as follows:

	Weighted
	average exercise		Number of	Vested and
Expiry date	price		options	exercisable
September 2019	$	3.00	42,365	42,365
November 2019	$	3.90	591,318	591,318
December 2019	$	5.25	400,000	33,333
January 2020	$	5.72	1,834	1,834
April 2020	$	7.92	38,334	38,334
June 2020	$	5.44	133,334	116,667
July 2020	$	5.24	538,660	434,983
September 2020	$	0.85	185,000	185,000
October 2020	$	6.90	156,667	26,666
November 2020	$	9.05	136,667	43,333
November 2020	$	9.28	50,000	33,333
December 2020	$	14.06	100,000	66,666
January 2021	$	21.70	10,000	6,666
January 2021	$	22.89	143,333	86,665
January 2021	$	22.08	50,000	33,333
March 2021	$	14.39	20,000	13,333
March 2021	$	9.98	200,000	133,333
March 2021	$	12.39	50,000	33,333
April 2021	$	11.40	380,000	266,666
April 2021	$	9.92	400,000	300,000
April 2021	$	11.45	66,667	33,333
May 2021	$	20.19	908,500	241,832
June 2021	$	1.40	168,335	168,335
June 2021	$	11.78	116,665	83,331
July 2021	$	11.85	150,000	50,000
August 2021	$	1.64	65,000	44,991
September 2021	$	19.38	66,666	33,332
October 2022	$	6.90	74,000	74,000
July 2023	$	11.51	80,000	—
July 2023	$	11.85	528,000	—
September 2023	$	19.38	150,000	—
October 2023	$	19.70	80,000	—
February 2024	$	12.77	395,000	—
February 2024	$	13.31	1,000,000	1,000,000
April 2024	$	11.45	80,000	—
July 2027	$	2.52	59,689	59,689
November 2027	$	6.29	39,792	39,792
March 2028	$	12.29	119,378	119,378
March 2028	$	14.38	39,792	39,792
Outstanding, end of the year	$	11.05	7,814,996	4,474,966

The Company used the Black-Scholes option pricing model to determine the fair value of options granted using the following assumptions: risk-free rate of 2.00‑2.08% on the date of grant; expected life of 3 – 5 years; volatility of 70% based on comparable companies; forfeiture rate of 0%; dividend yield of nil; and, the exercise price of the respective option.

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Non-controlling interest

12 Months Ended

May 31, 2019

Non-controlling interest

Non-controlling interest

24.    Non-controlling interest

The following tables summarise the information relating to the Company’s subsidiaries, 1974568 Ontario Ltd. (“Aphria Diamond”), CannInvest Africa Ltd., Verve Dynamics Incorporated (Pty) Ltd. (“Verve Dynamics”), Nuuvera Malta Ltd., Marigold, and ColCanna S.A.S. before intercompany eliminations.

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Current assets	$	2,598		$	2		$	185		$	1,813		$	441		$	5,078		$	10,117
Non-current assets		171,314			—		$	14,635		$	741		$	7,872			112,953			307,515
Current liabilities		(5,743)			(3)		$	(2,155)			(178)		$	(16)			(78)			(8,173)
Non-current liabilities		(150,892)			(9)		$	—			(3,196)		$	(1,654)			(9,638)			(165,389)
Net assets		17,277			(10)			12,665			(820)			6,643			108,315			144,070
Non-controlling interest %		49	%		50	%		70	%		10	%		5	%		10	%
Non-controlling interest	$	8,466		$	(5)		$	8,866		$	(82)		$	332		$	10,832		$	28,409

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Revenue	$	—		$	—		$	—		$	230		$	—		$	—		$	230
Total expenses		2,274		$	10		$	839		$	1,046		$	757			1,246			6,172
Net loss and comprehensive loss		(2,274)			(10)			(839)			(816)			(757)			(1,246)			(5,942)
Non-controlling interest %		49	%		50	%		70	%		10	%		5	%		10	%
	$	(1,114)		$	(5)		$	(587)		$	(82)		$	(38)		$	(125)		$	(1,951)

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Current assets	$	7,313		$	—		$	—		$	—		$	—		$	—		$	7,313
Non-current assets		83,207			—			—			—			—			—			83,207
Current liabilities		(10,085)			—			—			—			—			—			(10,085)
Non-current liabilities		(60,884)			—			—			—			—			—			(60,884)
Net assets		19,551			—			—			—			—			—			19,551
Non-controlling interest %		49	%		0	%		0	%		0	%		0	%		0	%
Non-controlling interest	$	9,580		$	—		$	—		$	—		$	—		$	—		$	9,580

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General and administrative expenses

12 Months Ended

May 31, 2019

General and administrative expenses

General and administrative expenses

25.    General and administrative expenses

	For the year ended
	May 31,
	2019		2018
Executive compensation	$	5,821	$	1,794
Consulting fees		6,517		1,154
Office and general		16,511		3,166
Professional fees		11,790		2,951
Salaries and wages		19,627		3,295
Insurance		5,356		396
Travel and accommodation		3,116		889
Rent		1,014		256
	$	69,752	$	13,901

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Share-based compensation

12 Months Ended

May 31, 2019

Share-based compensation

Share-based compensation

26.    Share-based compensation

Share-based compensation is comprised of:

	For the year ended
	May 31,
	2019		2018
Amounts charged to share-based payment reserve in respect of share-based compensation	$	24,078	$	15,780
Share-based compensation accrued		187		(44)
Share-based compensation issued on behalf of a related party		—		(32)
Shares for services compensation		—		187
Deferred share units expensed in the period		588		1,983
Restricted share units expensed in the period		1,227		—
	$	26,080	$	17,874

During the year, the Company issued 96,833 deferred share units to certain directors of the Company, under the terms of the Company’s Omnibus Long-Term Incentive Plan. In May 2018, directors and officers of the Company forfeited 312,000 deferred share units which were granted during the prior year.

During the year, the Company issued 197,600 restricted share units to employees, officers and directors.

As at May 31, 2019, the Company had 136,958 deferred share units and 197,600 restricted share units outstanding. As at May 31, 2019 114,550 restricted share units were vested.

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Non-operating income (loss)

12 Months Ended

May 31, 2019

Non-operating income (loss)

Non-operating income (loss)

27.    Non-operating income (loss)

Non-operating income (loss) is comprised of:

	For the year ended
	May 31,
	2019		2018
Non-operating income:
Consulting revenue	$	—	$	1,244
Foreign exchange gain		915		124
Loss on marketable securities		(178)		(2,155)
Gain (loss) on sale of capital assets		55		(191)
Gain on dilution of ownership in equity investee		2,210		7,535
Loss from equity investees		(1,123)		(9,295)
Gain on sale of equity investee		57,351		26,347
Deferred gain on sale of intellectual property		340		1,304
Interest income		14,350		6,362
Interest expense		(7,775)		(1,350)
Unrealized (loss) gain on convertible notes		(3,399)		4,135
Gain on long-term investments		19,651		26,675
Unrealized gain on convertible debentures		48,439		—
Unrealized loss on financial liabilities		(1,326)		(12,451)
	$	129,510	$	48,284

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Gain on long-term investments

12 Months Ended

May 31, 2019

Gain on long-term investments

Gain on long-term investments

28.    Gain on long-term investments

Gain on long-term investments for the year ended May 31, 2019 is comprised of:

			Opening fair		Gain (loss) on		Change in fair
Investment	Proceeds		value / cost		disposal		value		Total
Level 1 on fair value hierarchy
CannaRoyalty Corp. - shares	$	4,111	$	3,765	$	346	$	—	$	346
MassRoots, Inc. - shares		1		164		(163)		—		(163)
North Bud Farms Inc. - shares		373		253		120		—		120
Hiku Brands Company Ltd. - shares		30,542		13,558		16,984		—		16,984
Scythian Biosciences Corp. - shares		6,609		8,901		(2,292)		—		(2,292)
Level 2 on fair value hierarchy
Hiku Brands Company Ltd. - warrants		17,611		18,693		(1,082)		—		(1,082)
Scythian Biosciences Corp. - warrants		—		661		(661)		—		(661)
Level 3 on fair value hierarchy
Copperstate Farms, LLC - shares		5,300		5,300		—		—		—
Copperstate Farms Investors, LLC - shares		14,700		14,700		—		—		—
US legalization options		136,448		116,809		19,639		—		19,639
Green Acre Capital Fund II		500		3,000		(2,500)		—		(2,500)
Long-term investments (Note 14)		—		—		—		(10,740)		(10,740)
Year ended May 31, 2019	$	216,195	$	185,804	$	30,391	$	(10,740)	$	19,651

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Earnings (loss) per share

12 Months Ended

May 31, 2019

Earnings (loss) per share

Earnings (loss) per share

29.    Earnings (loss) per share

The calculation of earnings (loss) per share for the year ended May 31, 2019 was based on the net income (loss) attributable to common shareholders of $(16,499) (2018 – $29,448) and a weighted average number of common shares outstanding of 242,763,558 (2018 – 161,026,463) calculated as follows:

	2019		2018
Basic earnings (loss) per share:
Net income (loss) for the year	$	(16,499)	$	29,448
Average number of common shares outstanding during the year		242,763,558		161,026,463
Earnings (loss) per share – basic	$	(0.07)	$	0.18

	2019		2018
Diluted earnings per share:
Net income (loss) for the year	$	(16,499)	$	29,448
Average number of common shares outstanding during the year		242,763,558		161,026,463
"In the money" warrants outstanding during the year		—		1,293,890
"In the money" options outstanding during the year		—		3,593,647
		242,763,558		165,914,000
Earnings (loss) per share – diluted	$	(0.07)	$	0.18

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Change in non-cash working capital

12 Months Ended

May 31, 2019

Change in non-cash working capital

Change in non-cash working capital

30.    Change in non-cash working capital

Change in non-cash working capital is comprised of:

	For the year ended
	May 31,
	2019		2018
Decrease (increase) in accounts receivable	$	12,458	$	(1,797)
Decrease (increase) in other current assets		5,715		(7,628)
Decrease (increase) in inventory, net of fair value adjustment		(22,151)		(7,045)
Decrease (increase) in biological assets, net of fair value adjustment		(17,322)		(367)
Increase (decrease) in accounts payable and accrued liabilities		(10,998)		3,764
Increase (decrease) in income taxes payable		(882)		2,662
Increase (decrease) in deferred revenue		11,689		—
	$	(21,491)	$	(10,411)

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Financial risk management and financial instruments

12 Months Ended

May 31, 2019

Financial risk management and financial instruments

Financial risk management and financial instruments

31.    Financial risk management and financial instruments

Financial instruments

The Company has classified its cash and cash equivalents, marketable securities, long-term investments, and convertible notes receivable as FVTPL, accounts receivable, prepaids and other current assets and promissory notes receivable as loans and receivables, and accounts payable and accrued liabilities, promissory notes payable, long-term debt and convertible debentures as FVTPL or amortized cost.

The carrying values of accounts receivable, prepaids and other current assets, accounts payable and accrued liabilities, and promissory notes payable approximate their fair values due to their short periods to maturity.

The Company’s long-term debt of $28,982 is subject to fixed interest rates. The Company’s long-term debt is valued based on discounting the future cash outflows associated with the long-term debt. The discount rate is based on the incremental premium above market rates for Government of Canada securities of similar duration. In each period thereafter, the incremental premium is held constant while the Government of Canada security is based on the then current market value to derive the discount rate. The fair value of the Company’s long-term debt in repayment as at May 31, 2019 was $28,377.

Fair value hierarchy

Financial instruments recorded at fair value are classified using a fair value hierarchy that reflects the significance of inputs used in making the measurements. Cash and cash equivalents are Level 1. The hierarchy is summarized as follows:

Level 1     quoted prices (unadjusted) in active markets for identical assets and liabilities

Level 2     inputs that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices) from observable market data

Level 3     inputs for assets and liabilities not based upon observable market data

							May 31,
	Level 1		Level 2		Level 3		2019
Financial assets at FVTPL
Cash and cash equivalents	$	550,797	$	—	$	—	$	550,797
Marketable securities		20,199		—		—		20,199
Convertible notes receivable		—		—		32,230		32,230
Long-term investments		41,803		—		23,119		64,922
Outstanding, end of the year	$	612,799	$	—	$	55,349	$	668,148

							May 31,
	Level 1		Level 2		Level 3		2018
Financial assets at FVTPL
Cash and cash equivalents	$	59,737	$	—	$	—	$	59,737
Marketable securities		45,062		—		—		45,062
Convertible notes receivable		—		—		18,071		18,071
Long-term investments		33,600		2,567		29,861		66,028
Outstanding, end of the year	$	138,399	$	2,567	$	47,932	$	188,898

The following table presents the changes in level 3 items for the years ended May 31, 2019 and May 31, 2018:

	Unlisted
	equity		Trading
	securities		derivatives		Total
Closing balance May 31, 2018	$	29,861	$	18,071	$	47,932
Acquisitions		69,549		19,500		89,049
Disposals		(77,762)		(1,942)		(79,704)
Unrealized gain on fair value		1,471		(3,399)		(1,928)
Closing balance May 31, 2019	$	23,119	$	32,230	$	55,349

Financial risk management

The Company has exposure to the following risks from its use of financial instruments: credit; liquidity; currency rate; and, interest rate price.

(a)       Credit risk

The maximum credit exposure at May 31, 2019 is the carrying amount of cash and cash equivalents, marketable securities, accounts receivable, prepaids and other current assets and promissory notes receivable. The Company does not have significant credit risk with respect to customers. All cash and cash equivalents are placed with major financial institutions. Marketable securities are placed with major investment banks and are represented by investment grade corporate bonds.

The Company mitigates its credit risk and volatility on its marketable securities through its investment policy, which permits investments in Federal or Provincial government securities, Provincial utilities or bank institutions and Investment grade corporate bonds.

	Total		0‑30 days			31‑60 days			61‑90 days			90+ days
Trade receivables	$	25,488	$	20,777		$	3,333		$	237		$	1,141
				82	%		13	%		1	%		4	%

(b)       Liquidity risk

As at May 31, 2019, the Company’s financial liabilities consist of accounts payable and accrued liabilities, which has contractual maturity dates within one year, promissory note payable, which has a contractual maturity within 15 months and long-term debt, and convertible debentures which has contractual maturities over the next five years. The Company manages its liquidity risk by reviewing its capital requirements on an ongoing basis. Based on the Company’s working capital position at May 31, 2019, management regards liquidity risk to be low.

(c)       Currency rate risk

As at May 31, 2019, a portion of the Company’s financial assets and liabilities held in United States Dollars (“USD”) and Euros consist of cash and cash equivalents, marketable securities, convertible notes receivable, long-term investments and a promissory note payable. The Company’s objective in managing its foreign currency risk is to minimize its net exposure to foreign currency cash flows by transacting, to the greatest extent possible, with third parties in the functional currency. The Company is exposed to currency rate risk in other comprehensive income, relating to foreign subsidiaries which operate in a foreign currency. The Company does not currently use foreign exchange contracts to hedge its exposure of its foreign currency cash flows as management has determined that this risk is not significant at this point in time.

The Company is exposed to unrealized foreign exchange risk through its cash and cash equivalents. As at May 31, 2019, the majority of the Company’s cash and cash equivalents was in United States dollars. A 1% change in the foreign exchange rate would result in an unrealized gain or loss of approximately $4,000.

(d)       Interest rate price risk

The Company manages interest rate risk by restricting the type of investments and varying the terms of maturity and issuers of marketable securities. Varying the terms to maturity reduces the sensitivity of the portfolio to the impact of interest rate fluctuations.

(e)       Capital management

The Company’s objectives when managing its capital are to safeguard its ability to continue as a going concern, to meet its capital expenditures for its continued operations, and to maintain a flexible capital structure which optimizes the cost of capital within a framework of acceptable risk. The Company manages its capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may issue new shares, issue new debt, or acquire or dispose of assets. The Company is not subject to externally imposed capital requirements.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There have been no changes to the Company’s capital management approach in the year. The Company considers its cash and cash equivalents and marketable securities as capital.

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Commitments and contingencies

12 Months Ended

May 31, 2019

Commitments and contingencies

Commitments and contingencies

32.    Commitments and contingencies

The Company has a lease for rental office space from December 2018 to November 30, 2028. The Company has committed purchase orders outstanding at May 31, 2019 related to capital asset expansion of $49,364, all of which are expected to be paid within the next year. Minimum payments payable over the next five years are as follows:

	Years ending May 31,
2020	$	50,689
2021		942
2022		752
2023		711
2024		656
Thereafter		1,724
	$	55,474

From time to time, the Company and/or its subsidiaries may become defendants in legal actions arising out of the ordinary course and conduct of its business.

As of May 31, 2019, the Company was served statements of claims in class action lawsuits against the Company and certain of its officers and former officers. These claims relate to alleged misconduct in connection with the Company’s acquisitions of LATAM Holdings Inc. (“LATAM”) and Nuuvera Inc., and the Company’s June 2018 securities offering. At the present time, the representative claimants have been identified and selected in both the U.S. and Canada. The U.S. claims include alleged violations of Section 10(b) of the Exchange Act, Rule 10b‑5 under the Exchange Act and Section 20(a) of the Exchange Act. The Canadian claims include alleged statutory and common law misrepresentation and oppression. The Company intends to vigorously defend itself in each of these actions. With respect to the cases commenced in the United States, the Company is self-insured for the costs associated with any award or damages arising from such actions and has entered into indemnity agreements with each of the directors and officers and, subject to certain exemptions, will cover any costs incurred by them in connection with any of the class action claims. With respect to the cases commenced in Canada, the Company’s insurance policies may not be sufficient to cover any judgments against the Company. As at May 31, 2019, the Company has not recorded any uninsured amount related to this contingency.

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Segment reporting

12 Months Ended

May 31, 2019

Segment reporting

Segment reporting

33.    Segment reporting

Information reported to the Chief Operating Decision Maker (“CODM”) for the purpose of resource allocation and assessment of segment performance focuses on the nature of the operations. The Company operates in three segments. 1) cannabis operations, which encompasses the production, distribution and sale of both medical and adult-use cannabis, 2) distribution operations, which encompasses the purchase and resale of products to customers. The distribution operations are carried out through the Company’s wholly owned subsidiaries ABP, FL Group and CC Pharma, and 3) businesses under development which encompasses operations in which the Company has not received final licensing or has not commenced commercial sales from operations. Factors considered in determining the operating segments include the Company’s business activities, the management structure directly accountable to the CODM, availability of discrete financial information and strategic priorities within the organizational structure.

Segment information for the year ended May 31, 2019:

					Businesses
	Cannabis		Distribution		under
	operations		operations		development		Total
Revenue	$	78,853	$	157,931	$	326	$	237,110
Income (loss) before income taxes		726		2,914		(19,285)		(15,645)

Included in the net loss from cannabis operations is the $58,039 of impairment (Note 11).

Segment information for the year ended May 31, 2018:

					Businesses
	Cannabis		Distribution		under
	operations		operations		development		Total
Revenue	$	36,917	$	—	$	—	$	36,917
Income (loss) before income taxes		39,128		(119)		(3,153)		35,856

Geographic information for the year ended May 31, 2019:

	North America		Europe		Latin America		Africa		Total
Revenue	$	78,853	$	154,163	$	4,094	$	—	$	237,110
Capital assets		471,391		25,817		3,758		2,932		503,898

Geographic information for the year ended May 31, 2018:

	North America		Europe		Latin America		Africa		Total
Revenue	$	36,618	$	299	$	—	$	—	$	36,917
Capital assets		296,438		6,713		—		—		303,151

Major customers are defined as customers that each individually account for greater than 10% of the Company’s annual revenues and greater than 10% of accounts receivable. For the year ended May 31, 2019, the Company had no one customer that accounted for greater than 10% of the Company’s revenue (2018 – nil). For the year ended May 31, 2019, the Company had no one customer that accounted for greater than 10% of the Company’s accounts receivable (2018 – nil).

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Subsequent events

12 Months Ended

May 31, 2019

Subsequent events

Subsequent events

34.    Subsequent events

Subsequent to year-end the Company's subsidiary Marigold Projects Jamaica Limited received a retail Herb House licence from Jamaica's Cannabis Licensing Authority to open its first store at the Peter Tosh Square, Unit 51, Pulse Center, 38a Trafalgar Road, overlooking the Peter Tosh Museum in New Kingston, Jamaica.

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Significant accounting policies (Policies)

12 Months Ended

May 31, 2019

Significant accounting policies

Revenue

a.     Revenue

Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for transferring promised goods. Revenue from the sale of goods is recognized when control of the goods has transferred, which is determined by respective shipping terms and certain additional considerations. Invoices are generally issued at the time of delivery (which is when the Company has satisfied its performance obligation under the arrangement). The Company does not have performance obligations subsequent to delivery on the sale of goods to customers and revenues from sale of goods are recognized upon passing of control to the customer.

Amounts disclosed as net revenue are net of sales tax, duty tax, allowances, discounts and rebates.

Cash and cash equivalents

c.     Cash and cash equivalents

Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash and are subject to insignificant risk of changes in value.

Marketable securities

d.     Marketable securities

Marketable securities are comprised of liquid investments in federal, provincial and/or corporate bonds with maturities less than 3.5 years. Marketable securities are recognized initially at fair value and subsequently adjusted to fair value through profit or loss (“FVTPL”).

Inventory

e.     Inventory

Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. The capitalized cost of inventory includes the direct and indirect costs initially capitalized to biological assets before the transfer to inventory. The capitalized cost also includes subsequent costs such as materials, labour and amortization expense on equipment involved in packaging, labelling and inspection. The total cost of inventory also includes a fair value adjustment which represents the fair value of the biological asset at the time of harvest. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within ‘production costs’ on the statements of income and comprehensive income at the time cannabis is sold, the realized fair value amounts included in inventory sold are recorded as a separate line on the statements of income and comprehensive income.

Biological assets

f.     Biological assets

The Company’s biological assets consist of cannabis plants which are not yet harvested. These biological assets are measured at fair value less costs to sell. The Company capitalizes all related direct costs of growing materials as well as other indirect costs of production such as utilities and supplies used in the growing process. Indirect labour for individuals involved in the growing and quality control process is also included, as well as amortization on production equipment and overhead costs to the extent it is associated with the growing space. All direct and indirect costs of biological assets are capitalized as they are incurred, and subsequently transferred to inventory at the point of harvest. Unrealized fair value gains on growth of biological assets are recorded in a separate line on the face of the statements of income and comprehensive income and subsequently transferred to inventory at the point of harvest.

Assets held for sale

g.      Assets held for sale

Assets and liabilities held for disposal are no longer amortized and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable.

Capital assets

h.     Capital assets

Capital assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any.

Amortization is calculated using the following terms and methods:

Asset type	Amortization method	Amortization term
Land	Not amortized	No term
Production facility	Straight-line	15 – 20 years
Equipment	Straight-line	3 – 10 years
Leasehold improvements	Straight-line	Over lease term
Construction in progress	Not amortized	No term

An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the consolidated statements of income and comprehensive income in the year the asset is derecognized.

The assets’ residual values and useful lives are reviewed at each financial year end and adjusted prospectively if appropriate.

Intangible assets

i.     Intangible assets

Intangible assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any.

Amortization is calculated using the following terms and methods:

Asset type	Amortization method	Amortization term
Customer relationships	Straight-line	3 – 10 years
Corporate website	Straight-line	2 years
Licences, permits & applications	Straight-line	90 months – indefinite
Non-compete agreements	Straight-line	Over term of non-compete
Intellectual property, trademarks & brands	Straight-line	15 months – 20 years

The estimated success of applications and useful life are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Following initial recognition, intangible assets with indefinite useful lives are carried at cost less any accumulated impairment losses.

Goodwill

j.      Goodwill

Goodwill represents the excess of the purchase price paid for the acquisition of subsidiaries over the fair value of the net tangible and intangible assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Impairment of non-financial assets

k.      Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating unit, or “CGU”). An impairment loss is recognized for the amount, if any, by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less cost to sell and the value in use (being the present value of expected future cash flows of the asset or CGU). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been previously recognized,with the exception of goodwill and indefinite lived intangible assets.

Income taxes

l.     Income taxes

Income tax expense consisting of current and deferred tax expense is recognized in the consolidated statements of income and comprehensive income. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs.

A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Earnings per share

m.      Earnings per share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. The dilutive effect on earnings per share is calculated presuming the exercise of outstanding options, warrants, convertible debentures and similar instruments. It assumes that the proceeds of such exercise would be used to repurchase common shares at the average market price during the year. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive.

Share-based compensation

n.    Share-based compensation

The Company has an omnibus long-term incentive plan which includes issuances of stock options, restricted share units and deferred share units in place. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value is measured using the Black-Scholes option pricing model. Expected forfeitures are estimated at the date of grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. Any revisions are recognized in the consolidated statements of income and comprehensive income such that the cumulative expense reflects the revised estimate.

Research and development

o.     Research and development

Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures that do not meet the above criteria are recognized in the consolidated statements of income and comprehensive income as incurred.

Financial instruments

p.     Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at FVTPL , are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

Fair value estimates are made at the consolidated statement of financial position date based on relevant market information and information about the financial instrument. The Company has made the following classifications:

Financial assets/liabilities	IFRS 9 Classification
Cash and cash equivalents	FVTPL
Marketable securities	FVTPL
Accounts receivable	amortized cost
Other receivables	amortized cost
Convertible notes receivable	FVTPL
Long-term investments	FVTPL
Promissory notes receivable	amortized cost
Accounts payable and accrued liabilities	other financial liabilities
Income taxes payable	other financial liabilities
Promissory note payable	other financial liabilities
Convertible debentures	FVTPL
Long-term debt	other financial liabilities
Derivative liability	FVTPL

(i)     FVTPL financial assets

Financial assets are classified as FVTPL when the financial asset is held for trading or it is designated as FVTPL. Financial assets classified as FVTPL are stated at fair value with any resulting gain or loss recognized in the consolidated statements of income and comprehensive income. Transaction costs are expensed as incurred.

(ii)     Amortized cost financial assets

Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost.

(iii)     Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.

The carrying amount of all financial assets, excluding trade receivables, is directly reduced by the impairment loss. The carrying amount of trade receivables is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statements of income and comprehensive income. With the exception of FVOCI equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease relates to an event occurring after the impairment was recognized; the previously recognized impairment loss is reversed through the consolidated statements of income and comprehensive income.

(iv)     Financial liabilities and other financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. Financial liabilities at FVTPL are stated at fair value, with changes being recognized through the consolidated statements of income and comprehensive income. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.

(v)     Embedded derivatives

Embedded derivatives are separated from the host contract and accounted for separately if certain criteria are met. Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are recognised in profit or loss.

(vi)     Determination on fair value of long-term investments

All long-term investments (other than Level 3 warrants) are initially recorded at the transaction price, being the fair value at the time of acquisition. Thereafter, at each reporting period, the fair value of an investment is adjusted using one or more of the valuation indicators described below.

Critical accounting estimates and judgments

q.     Critical accounting estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the review affects both current and future periods.

Long-term investments and convertible notes receivable

The determination of fair value of the Company’s long-term investments and convertible notes receivable at other than initial cost is subject to certain limitations. Financial information for private companies in which the Company has investments may not be available and, even if available, that information may be limited and/or unreliable.

Use of the valuation approach described below may involve uncertainties and determinations based on the Company’s judgment and any value estimated from these techniques may not be realized or realizable.

Company-specific information is considered when determining whether the fair value of a long-term investment or convertible notes receivable should be adjusted upward or downward at the end of each reporting period. In addition to company-specific information, the Company will take into account trends in general market conditions and the share performance of comparable publicly-traded companies when valuing long-term investments and convertible notes receivable.

The fair value of long-term investments and convertible notes receivable may be adjusted if:

· There has been a significant subsequent equity financing provided by outside investors at a valuation different than the current value of the investee company, in which case the fair value of the investment is set to the value at which that financing took place;

· There have been significant corporate, political, or operating events affecting the investee company that, in management’s opinion, have a material impact on the investee company’s prospects and therefore its fair value. In these circumstances, the adjustment to the fair value of the investment will be based on management’s judgment and any value estimated may not be realized or realizable;

· The investee company is placed into receivership or bankruptcy;

· Based on financial information received from the investee company, it is apparent to the Company that the investee company is unlikely to be able to continue as a going concern;

· Important positive/negative management changes by the investee company that the Company’s management believes will have a positive/negative impact on the investee company’s ability to achieve its objectives and build value for shareholders.

Adjustment to the fair value of a long-term investment and convertible notes receivable will be based upon management’s judgment and any value estimated may not be realized or realizable. The resulting values for non-publicly traded investments may differ from values that would be realized if a ready market existed.

Biological assets and inventory

Management is required to make a number of estimates in calculating the fair value less costs to sell of biological assets and harvested cannabis inventory. These estimates include a number of assumptions such as estimating the stage of growth of the cannabis, harvesting costs, sales price, and expected yields.

Estimated useful lives, impairment considerations and amortization of capital and intangible assets

Amortization of capital and intangible assets is dependent upon estimates of useful lives based on management’s judgment.

Goodwill and indefinite life intangible asset impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill and indefinite life intangible assets are impaired.

Impairment of definite long-lived assets is influenced by judgment in defining a CGU and determining the indicators of impairment, and estimates used to measure impairment losses

The recoverable value of goodwill, indefinite and definite long-lived assets is determined using discounted future cash flow models, which incorporate assumptions regarding future events, specifically future cash flows, growth rates and discount rates.

Share-based compensation

The fair value of share-based compensation expenses are estimated using the Black-Scholes option pricing model and rely on a number of estimates, such as the expected life of the option, the volatility of the underlying share price, the risk free rate of return, and the estimated rate of forfeiture of options granted.

Business combinations

Judgement is used in determining whether an acquisition is a business combination or an asset acquisition. In determining the allocation of the purchase price in a business combination, including any acquisition-related contingent consideration, estimates including market based and appraisal values are used. The contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37, as appropriate, with the corresponding gain or loss being recognized in profit or loss.

The Company measures all assets acquired and liabilities assumed at their acquisition-date fair values. Non-controlling interests in the acquiree are measured on the basis of the non-controlling interests’ proportionate share of this equity in the acquiree’s identifiable net assets. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received (except for the costs to issue debt or equity securities which are recognized according to specific requirements). The excess of the aggregate of (a) the consideration transferred to obtain control, the amount of any non-controlling interest in the acquire over (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date.

Convertible debentures

The fair value of the convertible debentures is determined using the quoted price in the over-the-counter broker market. As the convertible debentures are classified as FVTPL, the subsequent interest as well as change in the fair value will flow through the consolidated statements of comprehensive income.

New standards and interpretations issued but not yet adopted

r.     New standards and interpretations applicable effective June 1, 2018

IFRS 9 - Financial Instruments; Classification and Measurement, effective for annual periods beginning on or after January 1, 2018, with early adoption permitted, introduces new requirements for the classification, measurement and derecognition of financial instruments and introduces a new impairment model for financial assets.

Under IFRS 9, financial instruments are initially measured at fair value plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs. Subsequently, all assets within scope of IFRS 9 are measured at:

(i) Amortized cost;

(ii) Fair value through other comprehensive income (“FVOCI”); or

(iii) Fair value through profit or loss (“FVTPL”).

The classification is based on whether the contractual cash flows give rise to payments on specified dates that are solely payments of principal and interest (the “SPPI test”), and the objective of the Company’s business model is to hold assets only to collect cash flows, or to collect cash flows and to sell (the “Business Model test”). Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date.

The impairment requirements under IFRS 9 are based on an expected credit loss (“ECL”) model, replacing the IAS 39 incurred loss model. The expected credit loss model applies to debt instruments recorded at amortized cost or at FVOCI, such as loans, debt, securities and trade receivables, lease receivables and most loan commitments and financial guarantee contracts.

The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:

Financial assets/liabilities	IAS 39 Classification	IFRS 9 Classification
Cash and cash equivalents	FVTPL	FVTPL
Marketable securities	FVTPL	FVTPL
Accounts receivable	loans and receivables	amortized cost
Other receivables	loans and receivables	amortized cost
Convertible notes receivable	AFS	FVTPL
Long-term investments	FVTPL	FVTPL
Accounts payable and accrued liabilities	other financial liabilities	other financial liabilities
Income taxes payable	other financial liabilities	other financial liabilities
Promissory note payable	other financial liabilities	other financial liabilities
Long-term debt	other financial liabilities	other financial liabilities
Derivative liability	derivative financial instruments	FVTPL

There were no other changes on adoption aside from the above classification changes.

IFRS 15 - Revenue from Contracts with Customers; effective for annual periods beginning on or after January 1, 2018, specifies how and when to recognize revenue, based on five-step model, and enhances relevant disclosures to be applied to all contracts with customers.

The Company has applied IFRS 15 retrospectively and determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows:

To recognize revenue under IFRS 15, the Company applies the following five steps:

1. Identify the contract(s) with a customer

2. Identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognize revenue when or as the Company satisfies a performance obligation

Revenue from the direct sale of goods to customers for a fixed price is recognized when the company transfers control of the good to the customer.

s.      New standards and interpretations issued but not yet adopted

IFRS 16 – Leases; in January 2016, the IASB issued IFRS 16, which specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019, and a lessee shall either apply IFRS 16 with full retrospective effect or alternatively not restate comparative information but recognise the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application. Based on its current assets, relationship with other entities interests and investments, no significant impact is anticipated from the new standard.

There are no other standards that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.

The Company has reclassified certain immaterial items on the comparative consolidated statements of financial position, consolidated statements of income and comprehensive income, and consolidated statements of cash flows to improve clarity.

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Basis of preparation (Tables)

12 Months Ended

May 31, 2019

Basis of preparation

Schedule of subsidiaries

Subsidiaries	Jurisdiction of incorporation	Ownership interest(1)
Nuuvera Holdings Limited	Ontario, Canada	100	%
ARA – Avanti Rx Analytics Inc.	Ontario, Canada	100	%
Nuuvera Israel Ltd.(2)	Israel	100	%
Nuuvera Deutschland GmbH	Germany	100	%
Aphria Deutschland GmbH	Germany	100	%
FL-Group	Italy	100	%
Broken Coast Cannabis Ltd.	British Columbia, Canada	100	%
Goodfields Supply Co. Ltd.	United Kingdom	100	%
LATAM Holdings Inc.	British Columbia, Canada	100	%
MMJ Colombia Partners Inc.	Ontario, Canada	100	%
Marigold Acquisitions Inc.	British Columbia, Canada	100	%
Hampstead Holdings Ltd.	Bermuda	100	%
MMJ International Investments Inc.	British Columbia, Canada	100	%
ABP, S.A.	Argentina	100	%
CC Pharma GmbH	Germany	100	%
CC Pharma Research and Development GmbH	Germany	100	%
Aphria Handelsgesellschaft	Germany	100	%
Marigold Projects Jamaica Limited	Jamaica	95	%(3)
Nuuvera Malta Ltd.	Malta	90	%
ASG Pharma Ltd.	Malta	90	%(4)
QSG Health Ltd.	Malta	90	%(5)
ColCanna S.A.S.	Colombia	90	%
CC Pharma Nordic ApS	Denmark	75	%
1974568 Ontario Ltd.	Ontario, Canada	51	%
Aphria Terra S.R.L.	Italy	51	%
Aphria Italy S.p.A.(2)	Italy	51	%
APL – Aphria Portugal, Lda.	Portugal	51	%
CannInvest Africa Ltd.	South Africa	50	%
Verve Dynamics Incorporated (Pty) Ltd.	Lesotho	30	%(6)

(1) The Company defines ownership interest as the interest in which the Company is entitled a proportionate share of net income. Legal ownership of some subsidiaries differ from ownership interest shown above.

(2) Represents inactive subsidiaries, which have no operations and do not own any assets, save and except for related party balances owing to the Company and is in the process of being dissolved.

(3) The Company holds 49% of the issued and outstanding shares of Marigold Projects Jamaica Limited, through wholly owned subsidiary Marigold Acquisitions Inc. The Company holds rights through a licensing agreement to 95% of the results of operations of Marigold Projects Jamaica Limited.

(4) The Company holds 100% of the issued and outstanding shares of ASG Pharma Ltd., through 90% owned subsidiary Nuuvera Malta Ltd.

(5) The Company holds 100% of the issued and outstanding shares of QSG Health Ltd., through 90% owned subsidiary Nuuvera Malta Ltd.

(6) The Company holds 60% of the issued and outstanding shares of Verve Dynamics Incorporated (Pty) Ltd., through 50% owned subsidiary CannInvest Africa Ltd.

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Significant accounting policies (Tables)

12 Months Ended

May 31, 2019

Significant accounting policies

Schedule of amortization of capital assets

Asset type	Amortization method	Amortization term
Land	Not amortized	No term
Production facility	Straight-line	15 – 20 years
Equipment	Straight-line	3 – 10 years
Leasehold improvements	Straight-line	Over lease term
Construction in progress	Not amortized	No term

Schedule of amortization of intangible assets

Asset type	Amortization method	Amortization term
Customer relationships	Straight-line	3 – 10 years
Corporate website	Straight-line	2 years
Licences, permits & applications	Straight-line	90 months – indefinite
Non-compete agreements	Straight-line	Over term of non-compete
Intellectual property, trademarks & brands	Straight-line	15 months – 20 years

Schedule of financial instrument classification

Financial assets/liabilities	IFRS 9 Classification
Cash and cash equivalents	FVTPL
Marketable securities	FVTPL
Accounts receivable	amortized cost
Other receivables	amortized cost
Convertible notes receivable	FVTPL
Long-term investments	FVTPL
Promissory notes receivable	amortized cost
Accounts payable and accrued liabilities	other financial liabilities
Income taxes payable	other financial liabilities
Promissory note payable	other financial liabilities
Convertible debentures	FVTPL
Long-term debt	other financial liabilities
Derivative liability	FVTPL

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Marketable securities (Tables)

12 Months Ended

May 31, 2019

Marketable securities

Schedule of marketable securities

	S&P rating at	Interest		Maturity	May 31,		May 31,
	purchase	rate		date	2019		2018
Fixed Income:
Ford Motor Credit Co. LLC	BBB	3.700	%	8/02/18	$	—	$	1,015
Sobeys Inc.	BB+	3.520	%	8/08/18		—		3,040
Canadian Western Bank	A-	3.077	%	1/14/19		—		1,528
Sun Life Financial Inc.	A	2.770	%	5/13/19		—		3,018
Ford Motor Credit Co. LLC	BBB	3.140	%	6/14/19		5,074		5,101
Canadian Western Bank	A-	3.463	%	12/17/19		1,019		1,025
Laurentian Bank of Canada	BBB	2.500	%	1/23/20		—		3,003
Enercare Solutions Inc.	BBB	4.600	%	2/03/20		3,907		3,974
Enbridge Inc.	BBB+	4.530	%	3/09/20		5,137		5,203
Choice Properties REIT	BBB	3.600	%	4/20/20		5,062		5,091
Westcoast Energy Inc.	BBB+	4.570	%	7/02/20		—		5,293
Citigroup Inc. (USD)	BBB+	2.050	%	12/17/18		—		3,914
Royal Bank of Canada (USD)	AA-	1.625	%	4/15/19		—		3,857
					$	20,199	$	45,062

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Prepaids and other current assets (Tables)

12 Months Ended

May 31, 2019

Prepaids and other current assets

Schedule of prepaids and other current assets

	May 31,		May 31,
	2019		2018
Sales tax receivable	$	7,583	$	10,840
Accrued interest		2,779		831
Prepaid assets		10,696		1,720
Other		2,333		993
	$	23,391	$	14,384

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Inventory (Tables)

12 Months Ended

May 31, 2019

Inventory

Summary of inventories

	Capitalized		Fair value		May 31,		May 31,
	cost		adjustment		2019		2018
Harvested cannabis	$	10,039	$	13,214	$	23,253	$	12,331
Harvested cannabis trim		2,830		2,959		5,789		2,277
Cannabis oil		11,300		8,301		19,601		6,578
Softgel capsules		422		342		764		—
Distribution inventory		32,944		—		32,944		—
Other inventory items		9,178		—		9,178		964
	$	66,713	$	24,816	$	91,529	$	22,150

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Biological assets (Tables)

12 Months Ended

May 31, 2019

Biological assets

Summary of biological assets

	Amount
Balance at May 31, 2017	$	1,408
Changes in fair value less costs to sell due to biological transformation		23,302
Purchased as part of business acquisition		826
Production costs capitalized		12,143
Transferred to inventory upon harvest		(30,348)
Balance at May 31, 2018	$	7,331
Changes in fair value less costs to sell due to biological transformation		40,607
Production costs capitalized		47,747
Transferred to inventory upon harvest		(76,960)
Balance at May 31, 2019	$	18,725

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Related party transactions (Tables)

12 Months Ended

May 31, 2019

Related party transactions

Schedule of key management personnel compensation

	Fortheyearended
	May 31,
	2019		2018
Salaries	$	5,024	$	1,699
Short-term employment benefits (included in office and general)		116		70
Share-based compensation		11,854		3,235
	$	16,994	$	5,004

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Capital assets (Tables)

12 Months Ended

May 31, 2019

Capital assets

Schedule of capital assets

			Production				Leasehold		Construction		Totalcapital
	Land		Facility		Equipment		improvements		inprocess		assets
Cost
At May 31, 2017	$	10,829	$	16,170	$	5,340	$	262	$	42,159	$	74,760
Business acquisitions		854		6,992		2,860		1,388		5,947		18,041
Additions		12,716		47,149		4,759		15		151,899		216,538
Transfers		105		29,338		2,990		—		(32,433)		—
Disposals		—		(207)		—		—		(415)		(622)
At May 31, 2018		24,504		99,442		15,949		1,665		167,157		308,717
Business acquisitions		345		4,524		1,662		182		154		6,867
Additions		8,109		3,829		28,305		778		163,953		204,974
Transfers		192		124,603		33,687		(1,389)		(157,093)		—
Effect of foreign exchange		3		70		24		—		11		108
At May 31, 2019	$	33,153	$	232,468	$	79,627	$	1,236	$	174,182	$	520,666
Accumulated depreciation
At May 31, 2017	$	—	$	983	$	1,260	$	62	$	—	$	2,305
Amortization		—		1,517		1,697		47		—		3,261
At May 31, 2018		—		2,500		2,957		109		—		5,566
Amortization		—		5,160		5,962		80		—		11,202
At May 31, 2019	$	—	$	7,660	$	8,919	$	189	$	—	$	16,768
Net book value
At May 31, 2017	$	10,829	$	15,187	$	4,080	$	200	$	42,159	$	72,455
At May 31, 2018	$	24,504	$	96,942	$	12,992	$	1,556	$	167,157	$	303,151
At May 31, 2019	$	33,153	$	224,808	$	70,708	$	1,047	$	174,182	$	503,898

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Intangible assets (Tables)

12 Months Ended

May 31, 2019

Intangible assets

Schedule of intangible assets

									Intellectual
					Licences,				property,		Total
	Customer		Corporate		permits&		Non-compete		trademarks&		intangible
	relationships		website		applications		agreements		brands		assets
Cost
At May 31, 2017	$	—	$	218	$	1,250	$	—	$	4,887	$	6,355
Business acquisitions		11,730		39		137,920		1,930		76,190		227,809
Additions		—		152		—		—		9		161
At May 31, 2018		11,730		409		139,170		1,930		81,086		234,325
Business acquisitions		21,300		—		123,956		1,400		16,200		162,856
Additions		—		496		12,754		—		1,244		14,494
At May 31, 2019	$	33,030	$	905	$	275,880	$	3,330	$	98,530	$	411,675
Accumulated depreciation
At May 31, 2017	$	—	$	156	$	153	$	—	$	4,155	$	4,464
Amortization		1,274		100		124		314		1,605		3,417
At May 31, 2018		1,274		256		277		314		5,760		7,881
Amortization		4,729		161		582		1,176		5,090		11,738
At May 31, 2019	$	6,003	$	417	$	859	$	1,490	$	10,850	$	19,619
Net book value
At May 31, 2017	$	—	$	62	$	1,097	$	—	$	732	$	1,891
At May 31, 2018	$	10,456	$	153	$	138,893	$	1,616	$	75,326	$	226,444
At May 31, 2019	$	27,027	$	488	$	275,021	$	1,840	$	87,680	$	392,056

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Business Acquisitions (Tables)

12 Months Ended

May 31, 2019

Business Acquisitions

Summary of goodwill acquired

	May 31,		May 31,
	2019		2018
CannWay goodwill	$	1,200	$	1,200
Broken Coast goodwill		146,091		145,794
Nuuvera goodwill		377,221		375,768
LATAM goodwill		139,188		—
CC Pharma goodwill		6,146		—
	$	669,846	$	522,762

Broken Coast Cannabis Ltd.

Business Acquisitions

Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date

	Note	Numberofshares	Shareprice		Amount
Consideration paid
Shares issued	(i)	14,393,638	$	14.90	$	214,465
Total consideration paid					$	214,465
Net assets acquired
Current assets
Cash and cash equivalents						2,007
Accounts receivable						299
Prepaids and other current assets						43
Inventory						2,572
Biological assets						826
Long-term assets
Capital assets						13,298
Customer relationships						11,730
Corporate website						39
Licences, permits & applications						6,320
Non-competition agreements						1,930
Intellectual property, trademarks & brands						72,490
Goodwill						146,091
Total assets						257,645
Current liabilities
Accounts payable and accrued liabilities						10,455
Income taxes payable						922
Long-term liabilities
Deferred tax liability						25,889
Long-term debt						5,914
Total liabilities						43,180
Total net assets acquired					$	214,465

(i) Share price based on the price of the shares on February 1, 2018.

Nuuvera Corp

Business Acquisitions

Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date

The table below summarizes the fair value of the assets acquired and the liabilities assumed at the effective acquisition date:

	Note	Number of shares	Share price		Amount
Consideration paid
Cash					$	54,604
Shares issued	(i)	31,226,910	$	13.17		411,258
Warrants outstanding	(ii)	1,345,866				1,015
Replacement options issued	(ii)	1,280,330				12,133
						479,010
Fair value of previously held investment
Shares held by Aphria	(i)	1,878,738	$	14.92		28,028
Warrants held by Aphria	(ii)	322,365				243
						28,271
Total fair value of consideration					$	507,281
Net assets acquired
Current assets
Cash and cash equivalents						35,033
Accounts receivable						464
Prepaids and other current assets						1,142
Inventory						401
Long-term assets
Capital assets						4,743
Intellectual property, trademarks & brands						3,700
Licences, permits & applications						131,600
Goodwill						377,221
Total assets						554,304
Current liabilities
Accounts payable and accrued liabilities						11,000
Long-term liabilities
Deferred tax liability						36,023
Total liabilities						47,023
Total net assets acquired					$	507,281

(i) Share price based on the price of the shares on March 23, 2018; shares held by Aphria include the cash consideration paid.

(ii) Options and warrants are valued using the Black-Scholes option pricing model using the following assumptions: the risk-free rate of 2.19%; expected life of 1‑ 10 years; volatility of 30% based on volatility used for similar instruments on the open market; forfeiture rate of nil; dividend yield of nil; and the exercise price of $2.52 - $20.30.

LATAM Holdings Inc

Business Acquisitions

Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date

	Note	Numberofshares	Shareprice		Amount
Consideration paid
Shares issued	(i)	15,678,310	$	17.47	$	273,900
Total consideration paid					$	273,900
Net assets acquired
Current assets
Cash and cash equivalents						2,704
Accounts receivable						571
Prepaids and other current assets						106
Inventory						65
Long-term assets
Capital assets						494
Licences, permits & applications						123,956
Goodwill						189,188
Total assets						317,084
Current liabilities
Accounts payable and accrued liabilities						1,986
Income taxes payable						20
Long-term liabilities
Deferred tax liability						29,837
Total liabilities						31,843
Non-controlling interest						11,341
Total net assets acquired					$	273,900

(i) Share price based on the price of the shares on September 27th, 2018.

CC Pharma GmbH

Business Acquisitions

Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date

	Amount
Consideration
Cash	$	28,775
Contingent consideration		35,741
Total consideration	$	64,516
Net assets acquired
Current assets
Cash and cash equivalents		7,237
Accounts receivable		33,989
Prepaids and other current assets		14,616
Inventory		28,352
Long-term assets
Capital assets		6,373
Customer relationships		21,300
Non-compete agreements		1,400
Intellectual property, trademarks & brands		16,200
Goodwill		6,146
Total assets		135,613
Current liabilities
Bank loans and overdrafts		20,255
Accounts payable and accrued liabilities		44,111
Income taxes payable		672
Long-term liabilities
Deferred tax liability		6,059
Total liabilities		71,097
Total net assets acquired	$	64,516

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Convertible notes receivable (Tables)

12 Months Ended

May 31, 2019

Convertible notes receivable

Schedule of convertible notes receivable

	May 31,		May 31,
	2019		2018
Copperstate Farms Investors, LLC	$	—	$	1,942
HydRx Farms Ltd. (d/b/a Scientus Pharma)		11,500		16,129
Fire & Flower Inc.		11,166		—
10330698 Canada Ltd. (d/b/a Starbuds)		5,204		—
High Tide Inc.		4,360		—
		32,230		18,071
Deduct - current portion		(11,500)		(1,942)
	$	20,730	$	16,129

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Interest in equity investees (Tables)

12 Months Ended

May 31, 2019

Interest in equity investees

Summary of investment in associated company

	May 31,		May 31,
	2019		2018
Associated company
Althea Company Pty Ltd.	$	9,311	$	4,966
	$	9,311	$	4,966

Summary of financial information of the Company's associate

	March 31,		March 31,
	2019		2018
Current assets	$	18,210	$	3,857
Non-current assets		1,125		3
Current liabilities		(655)		(14)
Non-current liabilities		—		—
Net assets	$	18,680	$	3,846

Summary of reconciliation to carrying amount

	May 31,		May 31,
	2019		2018
Reconciliation to carrying amount:
Opening balance	$	4,966	$	—
Transfer from long-term investments		—		2,483
Cash contributions, net of share issuance costs		3,258		2,497
Gain on account of dilution of ownership		2,210		—
Share of reported net loss		(1,123)		(14)
Closing balance	$	9,311	$	4,966

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Long-term investments (Tables)

12 Months Ended

May 31, 2019

Long-term investments

Summary of long-term investments

	Cost		Fair value						Subtotal				Fair value
	May 31,		May 31,				Divesture/		May 31,		Change in		May 31,
	2018		2018		Investment		Transfer		2019		fair value		2019
Level 1 on fair value hierarchy
CannaRoyalty Corp.	$	1,500	$	3,765	$	—	$	(3,765)	$	—	$	—	$	—
MassRoots, Inc.		304		164		—		(164)		—		—		—
Tetra Bio-Pharma Inc.		2,300		6,800		16,757		—		23,557		(6,341)		17,216
Hiku Brands Company Ltd.		9,775		13,558		—		(13,558)		—		—		—
Scythian Biosciences Corp.		9,349		8,603		298		(8,901)		—		—		—
National Access Cannabis Corp.		1,093		710		10,481		—		11,191		(4,044)		7,147
Aleafia Health Inc.		—		—		10,000		—		10,000		(1,555)		8,445
Rapid Dose Therapeutics Inc.		—		—		5,400		—		5,400		432		5,832
Fire & Flower Inc.		—		—		3,416		—		3,416		(593)		2,823
High Tide Inc.		—		—		450		—		450		(110)		340
		24,321		33,600		46,802		(26,388)		54,014		(12,211)		41,803
Level 2 on fair value hierarchy
Hiku Brands Company Ltd.		2,336		1,906		16,787		(18,693)		—		—		—
Scythian Biosciences Corp.		3,153		661		—		(661)		—		—		—
		5,489		2,567		16,787		(19,354)		—		—		—
Level 3 on fair value hierarchy
Copperstate Farms, LLC		1,755		5,300		—		(5,300)		—		—		—
Copperstate Farms Investors, LLC		9,407		14,700		—		(14,700)		—		—		—
Resolve Digital Health Inc.		718		3,300		—		—		3,300		(2,200)		1,100
Resolve Digital Health Inc.		282		1,916		—		—		1,916		(1,634)		282
Green Acre Capital Fund I		1,600		2,042		400		—		2,442		1,848		4,290
Green Acre Capital Fund II		—		—		3,000		(3,000)		—		—		—
Green Tank Holdings Corp.		650		647		1,240		—		1,887		3,447		5,334
IBBZ Krankenhaus GmbH		1,956		1,956		—		—		1,956		9		1,965
Greenwell Brands GmbH		—		—		152		—		152		1		153
HighArchy Ventures Ltd.		—		—		9,995		—		9,995		—		9,995
US legalization options		—		—		54,762		(54,762)		—		—		—
		16,368		29,861		69,549		(77,762)		21,648		1,471		23,119
Deduct - assets held for sale		(11,162)		(20,000)		—		20,000		—		—		—
	$	35,016	$	46,028	$	133,138	$	(103,504)	$	75,662	$	(10,740)	$	64,922

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Promissory notes receivable (Tables)

12 Months Ended

May 31, 2019

Promissory notes receivable

Promissory notes receivable

	May 31,				Disposal/		May 31,
	2018		Additions		Impairment		2019
September 6, 2018 - $59,098 - 12%, due September 6, 2023	$	—	$	59,098	$	(59,098)	$	—
September 24, 2018 - $55,000 - 12%, due September 24, 2023		—		55,000		(55,000)		—
May 15, 2019 - $39,000 - 3%, due October 15, 2019		—		39,000		—		39,000
October 11, 2018 - GBP £4,600 - 3.25%, due October 11, 2021		—		7,952		(7,952)		—
October 31, 2018 - $6,609 - 12%, due October 31, 2023		—		6,609		(6,609)		—
November 1, 2018 - $200 - interest free, due May 1, 2020		—		200		—		200
	$	—	$	167,859	$	(128,659)	$	39,200

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Income taxes and deferred income taxes (Tables)

12 Months Ended

May 31, 2019

Income taxes and deferred income taxes

Schedule of reconciliation of income taxes at the statutory rate

	For the year ended
	May 31,
	2019			2018
Income (loss) before income taxes (recovery)	$	(15,645)		$	35,856
Statutory rate		26.5	%		26.5	%
Expected income tax expense (recovery) at combined basic federal and provincial tax rate		(4,146)			9,502
Effect on income taxes of:
Foreign tax differential		(539)			—
Permanent differences		1,137			65
Non-deductible share-based compensation and other expenses		20,161			4,737
Non-taxable portion of losses (gains)		(15,504)			(7,162)
Other		(648)			(768)
Tax assets not recognized		393			34
	$	854		$	6,408
Income tax expense (recovery) is comprised of:
Current	$	4,944		$	2,750
Future		(4,090)			3,658
	$	854		$	6,408

Summary of components of deferred tax

	May 31,		May 31,
	2019		2018
Deferred tax assets
Non-capital loss carry forward	$	20,133	$	4,567
Capital loss carry forward		—		405
Share issuance and financing fees		9,689		5,443
Unrealized loss		—		916
Other		1,102		27
Deferred tax liabilities
Net book value in excess of undepreciated capital cost		(2,751)		(1,017)
Intangible assets in excess of tax costs		(101,271)		(64,120)
Unrealized gain		(6,534)		(1,097)
Biological assets and inventory in excess of tax costs		(8,001)		(4,377)
Net deferred tax assets (liabilities)	$	(87,633)	$	(59,253)

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Promissory notes payable (Tables)

12 Months Ended

May 31, 2019

Promissory note payable

Promissory note payable

	May 31,		May 31,
	2019		2018
Note payable to Althea Company Pty Ltd - $700 AUD ($686), opening balance, non-interest bearing, due and payable on December 31, 2020	$	610	$	686
Reduction of Promissory note payable ba006Cance with respect to products provided		(581)		(63)
Foreign exchange (gain) loss		(29)		(13)
Balance remaining		—		610
Deduct - principal portion included in current liabilities		—		(610)
	$	—	$	—

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Long-term debt (Tables)

12 Months Ended

May 31, 2019

Long-term debt

Schedule of detailed information about borrowings

	May 31,		May 31,
	2019		2018
Term loan - $25,000 - Canadian Five Year Bond interest rate plus 2.73% with a minimum 4.50%,  5 year term, with a 15-year amortization, repayable in blended monthly payments, due in July 2023	$	24,022	$	—
Term loan - $25,000 - 3.95%, compounded monthly, 5 year term with a 15-year amortization, repayable in equal monthly instalments of $188 including interest, due in April 2022		23,352		24,107
Term loan - $1,250 - 3.99%,  5-year term, with a 10-year amortization, repayable in equal monthly instalments of $13 including interest, due in July 2021		946		1,057
Mortgage payable - $3,750 - 3.95%,  5-year term, with a 20-year amortization, repayable in equal monthly instalments of $23 including interest, due in July 2021		3,380		3,515
Vendor take-back mortgage owed to related party - $2,850 - 6.75%,  5-year term, repayable in equal monthly instalments of $56 including interest, due in June 2021		1,305		1,869
Term loan - €5,000 - Euro Interbank Offered Rate + 1.79%,  5-year term, repayable in quarterly instalments of €250 plus interest, due in December 2023		7,169		—
Term loan - €5,000 - Euro Interbank Offered Rate + 2.68%,  5-year term, repayable in quarterly instalments of €250 plus interest, due in December 2023		7,169		—
		67,343		30,548
Deduct - unamortized financing fees		(116)		(71)
- principal portion included in current liabilities		(6,332)		(2,140)
	$	60,895	$	28,337

Schedule of long-term debt repayments

Next 12 months	$	6,332
2 years		6,499
3 years		6,039
4 years		6,119
5 years		6,259
Thereafter		36,095
Balance of obligation	$	67,343

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Convertible debentures (Tables)

12 Months Ended

May 31, 2019

Convertible debentures

Schedule of convertible debentures

	May 31,		May 31,
	2019		2018
Opening balance	$	—	$	—
Principal amount issued		469,805		—
Fair value adjustment		(48,439)		—
Closing balance	$	421,366	$	—

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Share capital (Tables)

12 Months Ended

May 31, 2019

Share capital

Schedule of classes of share capital

	Number of
Common Shares	shares	Amount
Balance at May 31, 2018	210,169,924	$	1,113,981
June 2018 bought deal, net of cash issuance costs	21,835,510		245,925
Broken Coast acquisition	19,963		297
LATAM acquisition	15,678,310		273,900
Warrants exercised	550,335		1,762
Options exercised	2,632,078		15,029
DSUs exercised	103,000		953
Income tax recovery on share issuance costs	—		3,426
	250,989,120	$	1,655,273

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Warrants (Tables)

12 Months Ended

May 31, 2019

Warrants

Summary of type of warrants

Type of warrant	Expiry date	Number of warrants	Weighted average price		Amount
Warrant	December 2, 2019	798,997		1.50		—
Warrant	September 26, 2021	200,000		3.14		360
Nuuvera warrant	February 14, 2020	1,293,803		20.30		976
		2,292,800	$	12.25	$	1,336

Schedule of outstanding warrants

	May 31,			May 31,
	2019			2018
	Number of warrants	Weighted average price		Number of warrants	Weighted average price
Outstanding, beginning of the year	2,843,138	$	10.52	3,885,908	$	1.61
Issued during the year	—		—	1,345,866		20.30
Exercised during the year	(550,335)		3.29	(2,388,636)		1.54
Cancelled during the year	(3)		1.75	—		—
Outstanding, end of the year	2,292,800	$	12.25	2,843,138	$	10.52

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Stock options (Tables)

12 Months Ended

May 31, 2019

Stock options

Summary of changes in stock options

	May 31,			May 31,
	2019			2018
	Number of	Weighted		Number of	Weighted
	options	average price		options	average price
Outstanding, beginning of the year	8,956,195	$	7.60	5,926,001	$	1.99
Exercised during the year	(3,164,174)		4.05	(2,637,363)		2.30
Issued during the year	3,005,000		13.05	6,703,330		11.12
Cancelled during the year	(982,025)		8.27	(1,035,773)		11.77
Outstanding, end of the year	7,814,996	$	11.05	8,956,195	$	7.60
Exercisable, end of the year	4,474,966	$	9.54	4,507,696	$	4.04

Schedule of outstanding options

	Weighted
	average exercise		Number of	Vested and
Expiry date	price		options	exercisable
September 2019	$	3.00	42,365	42,365
November 2019	$	3.90	591,318	591,318
December 2019	$	5.25	400,000	33,333
January 2020	$	5.72	1,834	1,834
April 2020	$	7.92	38,334	38,334
June 2020	$	5.44	133,334	116,667
July 2020	$	5.24	538,660	434,983
September 2020	$	0.85	185,000	185,000
October 2020	$	6.90	156,667	26,666
November 2020	$	9.05	136,667	43,333
November 2020	$	9.28	50,000	33,333
December 2020	$	14.06	100,000	66,666
January 2021	$	21.70	10,000	6,666
January 2021	$	22.89	143,333	86,665
January 2021	$	22.08	50,000	33,333
March 2021	$	14.39	20,000	13,333
March 2021	$	9.98	200,000	133,333
March 2021	$	12.39	50,000	33,333
April 2021	$	11.40	380,000	266,666
April 2021	$	9.92	400,000	300,000
April 2021	$	11.45	66,667	33,333
May 2021	$	20.19	908,500	241,832
June 2021	$	1.40	168,335	168,335
June 2021	$	11.78	116,665	83,331
July 2021	$	11.85	150,000	50,000
August 2021	$	1.64	65,000	44,991
September 2021	$	19.38	66,666	33,332
October 2022	$	6.90	74,000	74,000
July 2023	$	11.51	80,000	—
July 2023	$	11.85	528,000	—
September 2023	$	19.38	150,000	—
October 2023	$	19.70	80,000	—
February 2024	$	12.77	395,000	—
February 2024	$	13.31	1,000,000	1,000,000
April 2024	$	11.45	80,000	—
July 2027	$	2.52	59,689	59,689
November 2027	$	6.29	39,792	39,792
March 2028	$	12.29	119,378	119,378
March 2028	$	14.38	39,792	39,792
Outstanding, end of the year	$	11.05	7,814,996	4,474,966

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Non-controlling interest (Tables)

12 Months Ended

May 31, 2019

Non-controlling interest

Schedule of subsidiaries

The following tables summarise the information relating to the Company’s subsidiaries, 1974568 Ontario Ltd. (“Aphria Diamond”), CannInvest Africa Ltd., Verve Dynamics Incorporated (Pty) Ltd. (“Verve Dynamics”), Nuuvera Malta Ltd., Marigold, and ColCanna S.A.S. before intercompany eliminations.

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Current assets	$	2,598		$	2		$	185		$	1,813		$	441		$	5,078		$	10,117
Non-current assets		171,314			—		$	14,635		$	741		$	7,872			112,953			307,515
Current liabilities		(5,743)			(3)		$	(2,155)			(178)		$	(16)			(78)			(8,173)
Non-current liabilities		(150,892)			(9)		$	—			(3,196)		$	(1,654)			(9,638)			(165,389)
Net assets		17,277			(10)			12,665			(820)			6,643			108,315			144,070
Non-controlling interest %		49	%		50	%		70	%		10	%		5	%		10	%
Non-controlling interest	$	8,466		$	(5)		$	8,866		$	(82)		$	332		$	10,832		$	28,409

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Revenue	$	—		$	—		$	—		$	230		$	—		$	—		$	230
Total expenses		2,274		$	10		$	839		$	1,046		$	757			1,246			6,172
Net loss and comprehensive loss		(2,274)			(10)			(839)			(816)			(757)			(1,246)			(5,942)
Non-controlling interest %		49	%		50	%		70	%		10	%		5	%		10	%
	$	(1,114)		$	(5)		$	(587)		$	(82)		$	(38)		$	(125)		$	(1,951)

	Aphria			CannInvest			Verve			Nuuvera						ColCanna			May 31,
	Diamond			Africa Ltd.			Dynamics			Malta Ltd.			Marigold			S.A.S.			2019
Current assets	$	7,313		$	—		$	—		$	—		$	—		$	—		$	7,313
Non-current assets		83,207			—			—			—			—			—			83,207
Current liabilities		(10,085)			—			—			—			—			—			(10,085)
Non-current liabilities		(60,884)			—			—			—			—			—			(60,884)
Net assets		19,551			—			—			—			—			—			19,551
Non-controlling interest %		49	%		0	%		0	%		0	%		0	%		0	%
Non-controlling interest	$	9,580		$	—		$	—		$	—		$	—		$	—		$	9,580

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General and administrative expenses (Tables)

12 Months Ended

May 31, 2019

General and administrative expenses

Schedule of general and administrative expenses

	For the year ended
	May 31,
	2019		2018
Executive compensation	$	5,821	$	1,794
Consulting fees		6,517		1,154
Office and general		16,511		3,166
Professional fees		11,790		2,951
Salaries and wages		19,627		3,295
Insurance		5,356		396
Travel and accommodation		3,116		889
Rent		1,014		256
	$	69,752	$	13,901

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Share-based compensation (Tables)

12 Months Ended

May 31, 2019

Share-based compensation

Schedule of share based compensation

	For the year ended
	May 31,
	2019		2018
Amounts charged to share-based payment reserve in respect of share-based compensation	$	24,078	$	15,780
Share-based compensation accrued		187		(44)
Share-based compensation issued on behalf of a related party		—		(32)
Shares for services compensation		—		187
Deferred share units expensed in the period		588		1,983
Restricted share units expensed in the period		1,227		—
	$	26,080	$	17,874

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Non-operating income (loss) (Tables)

12 Months Ended

May 31, 2019

Non-operating income (loss)

Schedule of Non-operating income (loss)

	For the year ended
	May 31,
	2019		2018
Non-operating income:
Consulting revenue	$	—	$	1,244
Foreign exchange gain		915		124
Loss on marketable securities		(178)		(2,155)
Gain (loss) on sale of capital assets		55		(191)
Gain on dilution of ownership in equity investee		2,210		7,535
Loss from equity investees		(1,123)		(9,295)
Gain on sale of equity investee		57,351		26,347
Deferred gain on sale of intellectual property		340		1,304
Interest income		14,350		6,362
Interest expense		(7,775)		(1,350)
Unrealized (loss) gain on convertible notes		(3,399)		4,135
Gain on long-term investments		19,651		26,675
Unrealized gain on convertible debentures		48,439		—
Unrealized loss on financial liabilities		(1,326)		(12,451)
	$	129,510	$	48,284

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Gain on long-term investments (Tables)

12 Months Ended

May 31, 2019

Gain on long-term investments

Gain on long-term investments

			Opening fair		Gain (loss) on		Change in fair
Investment	Proceeds		value / cost		disposal		value		Total
Level 1 on fair value hierarchy
CannaRoyalty Corp. - shares	$	4,111	$	3,765	$	346	$	—	$	346
MassRoots, Inc. - shares		1		164		(163)		—		(163)
North Bud Farms Inc. - shares		373		253		120		—		120
Hiku Brands Company Ltd. - shares		30,542		13,558		16,984		—		16,984
Scythian Biosciences Corp. - shares		6,609		8,901		(2,292)		—		(2,292)
Level 2 on fair value hierarchy
Hiku Brands Company Ltd. - warrants		17,611		18,693		(1,082)		—		(1,082)
Scythian Biosciences Corp. - warrants		—		661		(661)		—		(661)
Level 3 on fair value hierarchy
Copperstate Farms, LLC - shares		5,300		5,300		—		—		—
Copperstate Farms Investors, LLC - shares		14,700		14,700		—		—		—
US legalization options		136,448		116,809		19,639		—		19,639
Green Acre Capital Fund II		500		3,000		(2,500)		—		(2,500)
Long-term investments (Note 14)		—		—		—		(10,740)		(10,740)
Year ended May 31, 2019	$	216,195	$	185,804	$	30,391	$	(10,740)	$	19,651

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Earnings (loss) per share (Tables)

12 Months Ended

May 31, 2019

Earnings (loss) per share

Earnings per share [text block]

	2019		2018
Basic earnings (loss) per share:
Net income (loss) for the year	$	(16,499)	$	29,448
Average number of common shares outstanding during the year		242,763,558		161,026,463
Earnings (loss) per share – basic	$	(0.07)	$	0.18

	2019		2018
Diluted earnings per share:
Net income (loss) for the year	$	(16,499)	$	29,448
Average number of common shares outstanding during the year		242,763,558		161,026,463
"In the money" warrants outstanding during the year		—		1,293,890
"In the money" options outstanding during the year		—		3,593,647
		242,763,558		165,914,000
Earnings (loss) per share – diluted	$	(0.07)	$	0.18

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Change in non-cash working capital (Tables)

12 Months Ended

May 31, 2019

Change in non-cash working capital

Schedule of change in non-cash working capital

	For the year ended
	May 31,
	2019		2018
Decrease (increase) in accounts receivable	$	12,458	$	(1,797)
Decrease (increase) in other current assets		5,715		(7,628)
Decrease (increase) in inventory, net of fair value adjustment		(22,151)		(7,045)
Decrease (increase) in biological assets, net of fair value adjustment		(17,322)		(367)
Increase (decrease) in accounts payable and accrued liabilities		(10,998)		3,764
Increase (decrease) in income taxes payable		(882)		2,662
Increase (decrease) in deferred revenue		11,689		—
	$	(21,491)	$	(10,411)

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Financial risk management and financial instruments (Tables)

12 Months Ended

May 31, 2019

Financial risk management and financial instruments

Summary of financial instruments recorded at fair value classified using a fair value hierarchy that reflects the significance of inputs used in making the measurements

							May 31,
	Level 1		Level 2		Level 3		2019
Financial assets at FVTPL
Cash and cash equivalents	$	550,797	$	—	$	—	$	550,797
Marketable securities		20,199		—		—		20,199
Convertible notes receivable		—		—		32,230		32,230
Long-term investments		41,803		—		23,119		64,922
Outstanding, end of the year	$	612,799	$	—	$	55,349	$	668,148

							May 31,
	Level 1		Level 2		Level 3		2018
Financial assets at FVTPL
Cash and cash equivalents	$	59,737	$	—	$	—	$	59,737
Marketable securities		45,062		—		—		45,062
Convertible notes receivable		—		—		18,071		18,071
Long-term investments		33,600		2,567		29,861		66,028
Outstanding, end of the year	$	138,399	$	2,567	$	47,932	$	188,898

Summary of changes in level 3 items

	Unlisted
	equity		Trading
	securities		derivatives		Total
Closing balance May 31, 2018	$	29,861	$	18,071	$	47,932
Acquisitions		69,549		19,500		89,049
Disposals		(77,762)		(1,942)		(79,704)
Unrealized gain on fair value		1,471		(3,399)		(1,928)
Closing balance May 31, 2019	$	23,119	$	32,230	$	55,349

Summary of credit risk and volatility on its marketable securities

	Total		0‑30 days			31‑60 days			61‑90 days			90+ days
Trade receivables	$	25,488	$	20,777		$	3,333		$	237		$	1,141
				82	%		13	%		1	%		4	%

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Commitments and contingencies (Tables)

12 Months Ended

May 31, 2019

Commitments and contingencies

Schedule of minimum payments payable over the next five years

	Years ending May 31,
2020	$	50,689
2021		942
2022		752
2023		711
2024		656
Thereafter		1,724
	$	55,474

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Segment reporting (Tables)

12 Months Ended

May 31, 2019

Segment reporting

Schedule of segment information

Segment information for the year ended May 31, 2019:

					Businesses
	Cannabis		Distribution		under
	operations		operations		development		Total
Revenue	$	78,853	$	157,931	$	326	$	237,110
Income (loss) before income taxes		726		2,914		(19,285)		(15,645)

Included in the net loss from cannabis operations is the $58,039 of impairment (Note 11).

Segment information for the year ended May 31, 2018:

					Businesses
	Cannabis		Distribution		under
	operations		operations		development		Total
Revenue	$	36,917	$	—	$	—	$	36,917
Income (loss) before income taxes		39,128		(119)		(3,153)		35,856

Schedule of geographic information

Geographic information for the year ended May 31, 2019:

	North America		Europe		Latin America		Africa		Total
Revenue	$	78,853	$	154,163	$	4,094	$	—	$	237,110
Capital assets		471,391		25,817		3,758		2,932		503,898

Geographic information for the year ended May 31, 2018:

	North America		Europe		Latin America		Africa		Total
Revenue	$	36,618	$	299	$	—	$	—	$	36,917
Capital assets		296,438		6,713		—		—		303,151

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Nature of operations (Details)	1 Months Ended
	Nov. 30, 2017
Aphria Diamond
Proportion of interest in subsidiary (in percent)	51.00%

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Basis of preparation (Details)	12 Months Ended
	May 31, 2019
Nuuvera Holdings Limited
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
ARA - Avanti Rx Analytics Inc.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Nuuvera Israel Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Nuuvera Deutschland GmbH
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Aphria Deutschland GmbH
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
FL-Group
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Broken Coast Cannabis Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Goodfields Supply Co. Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
LATAM Holdings Inc.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
MMJ Colombia Partners Inc.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Marigold Acquisitions Inc.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Hampstead Holdings Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
MMJ International Investments Inc.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
ABP, S.A.
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
CC Pharma GmbH
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
CC Pharma Research and Development GmbH
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Aphria Handelsgesellschaft
Basis of preparation
Proportion of interest in subsidiary (in percent)	100.00%
Marigold Projects Jamaica Limited
Basis of preparation
Proportion of interest in subsidiary (in percent)	95.00%
Percentage of issued and outstanding shares	49.00%
Nuuvera Malta Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	90.00%
ASG Pharma Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	90.00%
Percentage of issued and outstanding shares	100.00%
QSG Health Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	90.00%
Percentage of issued and outstanding shares	100.00%
ColCanna S.A.S.
Basis of preparation
Proportion of interest in subsidiary (in percent)	90.00%
CC Pharma Nordic ApS
Basis of preparation
Proportion of interest in subsidiary (in percent)	75.00%
1974568 Ontario Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	51.00%
Aphria Terra S.R.L.
Basis of preparation
Proportion of interest in subsidiary (in percent)	51.00%
Aphria Italy S.p.A.
Basis of preparation
Proportion of interest in subsidiary (in percent)	51.00%
APL - Aphria Portugal, Lda.
Basis of preparation
Proportion of interest in subsidiary (in percent)	51.00%
CannInvest Africa Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	50.00%
Verve Dynamics Incorporated (Pty) Ltd.
Basis of preparation
Proportion of interest in subsidiary (in percent)	30.00%
Percentage of issued and outstanding shares	60.00%

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Significant accounting policies - Marketable securities (Details)	12 Months Ended
	May 31, 2019
Significant accounting policies
Marketable securities, maturity term	3 years 6 months

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Significant accounting policies - Capital assets (Details)	12 Months Ended
	May 31, 2019
Production facility | Minimum
Significant accounting policies
Amortization term	15 years
Production facility | Maximum
Significant accounting policies
Amortization term	20 years
Equipment | Minimum
Significant accounting policies
Amortization term	3 years
Equipment | Maximum
Significant accounting policies
Amortization term	10 years

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Significant accounting policies - Intangible assets (Details)	12 Months Ended
	May 31, 2019
Customer relationships | Minimum
Significant accounting policies
Amortization term	3 years
Customer relationships | Maximum
Significant accounting policies
Amortization term	10 years
Corporate website
Significant accounting policies
Amortization term	2 years
Licenses, permits and applications | Minimum
Significant accounting policies
Amortization term	90 months
Intellectual property, trademarks & brands | Minimum
Significant accounting policies
Amortization term	15 months
Intellectual property, trademarks & brands | Maximum
Significant accounting policies
Amortization term	20 years

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Marketable securities (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Marketable securities
Marketable securities classified as Fair value through profit or loss	$ 20,199	$ 45,062
Gain/loss on marketable securities portfolio	(178)	(2,155)
Marketable securities
Marketable securities
Marketable securities classified as Fair value through profit or loss	20,199	45,062
Marketable securities, cost	20,907	45,863
Proceeds from disposal of marketable securities	24,685	47,495
Gain/loss on disposal	18	(608)
Marketable securities, reinvested	0	7,365
Gain/loss on marketable securities portfolio	(178)	(2,155)
Unrealized Fair value adjustments	$ (196)	$ (1,547)
Ford Motor Credit Co. LLC
Marketable securities
Interest rate (as a percent)	3.70%	3.70%
Marketable securities classified as Fair value through profit or loss		$ 1,015
Sobeys Inc.
Marketable securities
Interest rate (as a percent)	3.52%	3.52%
Marketable securities classified as Fair value through profit or loss		$ 3,040
Canadian Western Bank
Marketable securities
Interest rate (as a percent)	3.077%	3.077%
Marketable securities classified as Fair value through profit or loss		$ 1,528
Sun Life Financial Inc.
Marketable securities
Interest rate (as a percent)	2.77%	2.77%
Marketable securities classified as Fair value through profit or loss		$ 3,018
Ford Motor Credit Co. LLC
Marketable securities
Interest rate (as a percent)	3.14%	3.14%
Marketable securities classified as Fair value through profit or loss	$ 5,074	$ 5,101
Canadian Western Bank
Marketable securities
Interest rate (as a percent)	3.463%	3.463%
Marketable securities classified as Fair value through profit or loss	$ 1,019	$ 1,025
Laurentian Bank of Canada
Marketable securities
Interest rate (as a percent)	2.50%	2.50%
Marketable securities classified as Fair value through profit or loss		$ 3,003
Enercare Solutions Inc.
Marketable securities
Interest rate (as a percent)	4.60%	4.60%
Marketable securities classified as Fair value through profit or loss	$ 3,907	$ 3,974
Enbridge Inc.
Marketable securities
Interest rate (as a percent)	4.53%	4.53%
Marketable securities classified as Fair value through profit or loss	$ 5,137	$ 5,203
Choice Properties REIT
Marketable securities
Interest rate (as a percent)	3.60%	3.60%
Marketable securities classified as Fair value through profit or loss	$ 5,062	$ 5,091
Westcoast Energy Inc.
Marketable securities
Interest rate (as a percent)	4.57%	4.57%
Marketable securities classified as Fair value through profit or loss		$ 5,293
Citigroup Inc.
Marketable securities
Interest rate (as a percent)	2.05%	2.05%
Marketable securities classified as Fair value through profit or loss		$ 3,914
Royal Bank of Canada
Marketable securities
Interest rate (as a percent)	1.625%	1.625%
Marketable securities classified as Fair value through profit or loss		$ 3,857

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Prepaids and other current assets (Details) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Prepaids and other current assets
Sales tax receivable	$ 7,583	$ 10,840
Accrued interest	2,779	831
Prepaid assets	10,696	1,720
Other	2,333	993
Total	$ 23,391	$ 14,384

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Inventory (Details) $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($) kg l	May 31, 2018 CAD ($) kg l
Inventory
Capitalized cost	$ 66,713
Fair value adjustment	24,816
Total inventory	91,529	$ 22,150
Production costs	35,548	8,692
Conversion costs	1,682	241
Cost of accessories	142	236
Amortization of inventory	4,133	1,715
Amortization which remains in inventory related to capital assets utilized in production	4,723	978
Fair value adjustment on sale of inventory	27,724	10,327
Harvested cannabis
Inventory
Capitalized cost	10,039
Fair value adjustment	13,214
Total inventory	$ 23,253	$ 12,331
Stock held (in kg) | kg	6,309.9	3,221.3
Harvested cannabis trim
Inventory
Capitalized cost	$ 2,830
Fair value adjustment	2,959
Total inventory	$ 5,789	$ 2,277
Stock held (in kg) | kg	1,908.0	702.0
Cannabis oil
Inventory
Capitalized cost	$ 11,300
Fair value adjustment	8,301
Total inventory	$ 19,601	$ 6,578
Stock held (in kg) | kg	4,949.2	1,716.6
Stock held (in litres) | l	28,458.1	7,724.7
Softgel capsules
Inventory
Capitalized cost	$ 422
Fair value adjustment	342
Total inventory	$ 764
Stock held (in kg) | kg	218.2	0
Stock held (in litres) | l	982.0	0
Distribution inventory
Inventory
Capitalized cost	$ 32,944
Total inventory	32,944
Other inventory items
Inventory
Capitalized cost	9,178
Total inventory	$ 9,178	$ 964

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Biological assets - Rollforward (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Reconciliation of changes in biological assets
Biological assets at beginning of period	$ 7,331	$ 1,408
Changes in fair value less costs to sell due to biological transformation	40,607	23,302
Purchased as part of business acquisition		826
Production costs capitalized	47,747	12,143
Transferred to inventory upon harvest	(76,960)	(30,348)
Balance at the end	$ 18,725	$ 7,331

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Biological assets - Additional Information (Details)	12 Months Ended
	May 31, 2019 g $ / g	May 31, 2018 $ / g
Minimum
Biological assets
Growing cycle from propagation to harvest (in weeks)	84 days
Maximum
Biological assets
Growing cycle from propagation to harvest (in weeks)	112 days
Harvested cannabis
Biological assets
Fair value less costs to sell per gram upon harvest for greenhouse produced cannabis	3.50	3.75
Fair value less costs to sell per gram upon harvest for indoor produced cannabis	4.00	4.25
Harvested cannabis trim
Biological assets
Fair value less costs to sell per gram upon harvest for greenhouse produced cannabis	2.75	3.00
Fair value less costs to sell per gram upon harvest for indoor produced cannabis	3.25	3.50
Plants | Minimum
Biological assets
Harvest yield (in grams per plant) | g	40
Selling price per gram	3.00
Processing costs include drying and curing, testing, post-harvest overhead allocation, packaging and labelling costs per gram	0.30
Selling costs include shipping, order fulfilment, patient acquisition and patient maintenance costs per gram	0.00
Plants | Maximum
Biological assets
Harvest yield (in grams per plant) | g	80
Selling price per gram	7.00
Processing costs include drying and curing, testing, post-harvest overhead allocation, packaging and labelling costs per gram	0.80
Selling costs include shipping, order fulfilment, patient acquisition and patient maintenance costs per gram	1.50

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Biological assets - Sensitivity of the inputs (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Biological assets
Percentage of possible decrease in average selling price per gram	5.00%
Decrease in biological asset value due to decrease in average selling price per gram	$ 516	$ 267
Decrease in inventory due to decrease in average selling price per gram	$ 2,470	1,040
Percentage of possible decrease in harvest yield per plant	5.00%
Decrease in biological asset value due to decrease in the harvest yield per plant	$ 266	$ 179

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Related party transactions (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Related parties
Related party transactions
Salaries	$ 5,024	$ 1,699
Short-term employment benefits(included in office and general)	116	70
Share-based compensation	11,854	3,235
Total Key management personnel compensation	$ 16,994	$ 5,004
Directors and Officers
Related party transactions
Percentage of voting rights controlled by related parties	0.10%
Number of voting shares controlled by related parties	135,942
Mr.Irwin Simon
Related party transactions
Base compensation	$ 1,100
Stock options declared	1,000,000
Restricted stock units declared	25,000
Board of Directors
Related party transactions
Base compensation	$ 300
Compensation paid in cash	150
Deferred share units, value	$ 150
One time award	7,500

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Capital assets (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Reconciliation of capital assets
Balance at beginning of the period	$ 303,151	$ 72,455
Balance at end of the period	503,898	303,151
Land
Reconciliation of capital assets
Balance at beginning of the period	24,504	10,829
Balance at end of the period	33,153	24,504
Production facility
Reconciliation of capital assets
Balance at beginning of the period	96,942	15,187
Balance at end of the period	224,808	96,942
Equipment
Reconciliation of capital assets
Balance at beginning of the period	12,992	4,080
Balance at end of the period	70,708	12,992
Leasehold improvements
Reconciliation of capital assets
Balance at beginning of the period	1,556	200
Balance at end of the period	1,047	1,556
Construction in progress
Reconciliation of capital assets
Balance at beginning of the period	167,157	42,159
Balance at end of the period	174,182	167,157
Cost
Reconciliation of capital assets
Balance at beginning of the period	308,717	74,760
Business acquisitions	6,867	18,041
Additions	204,974	216,538
Disposals		(622)
Effect of foreign exchange	108
Balance at end of the period	520,666	308,717
Cost | Land
Reconciliation of capital assets
Balance at beginning of the period	24,504	10,829
Business acquisitions	345	854
Additions	8,109	12,716
Transfers	192	105
Effect of foreign exchange	3
Balance at end of the period	33,153	24,504
Cost | Production facility
Reconciliation of capital assets
Balance at beginning of the period	99,442	16,170
Business acquisitions	4,524	6,992
Additions	3,829	47,149
Transfers	124,603	29,338
Disposals		(207)
Effect of foreign exchange	70
Balance at end of the period	232,468	99,442
Cost | Equipment
Reconciliation of capital assets
Balance at beginning of the period	15,949	5,340
Business acquisitions	1,662	2,860
Additions	28,305	4,759
Transfers	33,687	2,990
Effect of foreign exchange	24
Balance at end of the period	79,627	15,949
Cost | Leasehold improvements
Reconciliation of capital assets
Balance at beginning of the period	1,665	262
Business acquisitions	182	1,388
Additions	778	15
Transfers	(1,389)
Balance at end of the period	1,236	1,665
Cost | Construction in progress
Reconciliation of capital assets
Balance at beginning of the period	167,157	42,159
Business acquisitions	154	5,947
Additions	163,953	151,899
Transfers	(157,093)	(32,433)
Disposals		(415)
Effect of foreign exchange	11
Balance at end of the period	174,182	167,157
Accumulated depreciation
Reconciliation of capital assets
Balance at beginning of the period	5,566	2,305
Amortization	11,202	3,261
Balance at end of the period	16,768	5,566
Accumulated depreciation | Production facility
Reconciliation of capital assets
Balance at beginning of the period	2,500	983
Amortization	5,160	1,517
Balance at end of the period	7,660	2,500
Accumulated depreciation | Equipment
Reconciliation of capital assets
Balance at beginning of the period	2,957	1,260
Amortization	5,962	1,697
Balance at end of the period	8,919	2,957
Accumulated depreciation | Leasehold improvements
Reconciliation of capital assets
Balance at beginning of the period	109	62
Amortization	80	47
Balance at end of the period	$ 189	$ 109

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Intangible assets (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Reconciliation of changes in intangible assets
Balance at beginning of the period	$ 226,444	$ 1,891
Changes in intangible assets
Balance at end of the period	392,056	226,444
Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	234,325	6,355
Changes in intangible assets
Business acquisitions	162,856	227,809
Additions	14,494	161
Balance at end of the period	411,675	234,325
Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	7,881	4,464
Changes in intangible assets
Amortisation	11,738	3,417
Balance at end of the period	19,619	7,881
Customer relationships
Reconciliation of changes in intangible assets
Balance at beginning of the period	10,456
Changes in intangible assets
Balance at end of the period	27,027	10,456
Customer relationships | Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	11,730
Changes in intangible assets
Business acquisitions	21,300	11,730
Balance at end of the period	33,030	11,730
Customer relationships | Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	1,274
Changes in intangible assets
Amortisation	4,729	1,274
Balance at end of the period	6,003	1,274
Corporate website
Reconciliation of changes in intangible assets
Balance at beginning of the period	153	62
Changes in intangible assets
Balance at end of the period	488	153
Corporate website | Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	409	218
Changes in intangible assets
Business acquisitions		39
Additions	496	152
Balance at end of the period	905	409
Corporate website | Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	256	156
Changes in intangible assets
Amortisation	161	100
Balance at end of the period	417	256
Licenses, permits and applications
Reconciliation of changes in intangible assets
Balance at beginning of the period	138,893	1,097
Changes in intangible assets
Balance at end of the period	275,021	138,893
Indefinite lived intangible assets	273,579
Licenses, permits and applications | Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	139,170	1,250
Changes in intangible assets
Business acquisitions	123,956	137,920
Additions	12,754
Balance at end of the period	275,880	139,170
Licenses, permits and applications | Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	277	153
Changes in intangible assets
Amortisation	582	124
Balance at end of the period	859	277
Non-compete Agreements
Reconciliation of changes in intangible assets
Balance at beginning of the period	1,616
Changes in intangible assets
Balance at end of the period	1,840	1,616
Non-compete Agreements | Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	1,930
Changes in intangible assets
Business acquisitions	1,400	1,930
Balance at end of the period	3,330	1,930
Non-compete Agreements | Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	314
Changes in intangible assets
Amortisation	1,176	314
Balance at end of the period	1,490	314
Intellectual property, trademarks & brands
Reconciliation of changes in intangible assets
Balance at beginning of the period	75,326	732
Changes in intangible assets
Balance at end of the period	87,680	75,326
Intellectual property, trademarks & brands | Cost
Reconciliation of changes in intangible assets
Balance at beginning of the period	81,086	4,887
Changes in intangible assets
Business acquisitions	16,200	76,190
Additions	1,244	9
Balance at end of the period	98,530	81,086
Intellectual property, trademarks & brands | Accumulated depreciation
Reconciliation of changes in intangible assets
Balance at beginning of the period	5,760	4,155
Changes in intangible assets
Amortisation	5,090	1,605
Balance at end of the period	$ 10,850	$ 5,760

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Business Acquisitions - Acquisition of Broken Coast Cannabis Ltd. (Details) - Broken Coast Cannabis Ltd. $ / shares in Units, $ in Thousands		Feb. 01, 2018 CAD ($) USD ($) $ / shares		Aug. 31, 2018 USD ($)	Feb. 13, 2018 CAD ($) USD ($)
Disclosure of detailed information about business combination [line items]
Percentage of voting interest acquired				0.14%	99.86%
Purchase price		$ 214,465			$ 214,168
Number of shares issued		14,393,638	[1]	19,963	14,373,675
Consideration paid
Number of shares		14,393,638	[1]	19,963	14,373,675
Share price | $ / shares	[1]	$ 14.90
Amount	[1]	$ 214,465
Total consideration paid		214,465			$ 214,168
Current assets
Cash and cash equivalents		2,007
Accounts receivable		299
Prepaids and other current assets		43
Inventory		2,572
Biological Assets Recognised As Of Acquisition Date		826
Long-term assets
Capital assets		13,298
Customer relationships		11,730
Corporate website		39
Licences, permits & applications		6,320
Non-competition agreements		1,930
Intellectual property, trademarks & brands		72,490
Goodwill		146,091
Total assets		257,645
Current liabilities
Accounts payable and accrued liabilities		10,455
Income taxes payable		922
Long-term liabilities
Deferred tax liability		25,889
Long-term debt		5,914
Total liabilities		43,180
Total net assets acquired		214,465
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place		2,268
Transaction costs		$ 1,643

[1] Share price based on the price of the shares on February 1, 2018.

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Business Acquisitions - Acquisition of Nuuvera Corp. (Details) - Nuuvera Corp	Mar. 23, 2018 CAD ($) USD ($) $ / shares shares
Business Acquisitions
Percentage of voting interest acquired	100.00%
Total consideration in cash | $ / shares	$ 0.62
Shares issued per share | $ / shares	$ 0.3546
Consideration paid
Cash	$ 54,604,000
Shares issued
Number of shares	31,226,910	[1]
Share price | $ / shares	$ 13.17	[1]
Amount	$ 411,258,000	[1]
Warrants outstanding
Number of warrants | shares	1,345,866	[2]
Warrants amount	$ 1,015,000	[2]
Replacement options issued
Number of options | shares	1,280,330	[1]
Option amount	$ 12,133,000	[1]
Fair value of previously held investment	$ 479,010,000
Shares held by Aphria
Number of shares | shares	1,878,738	[1]
Share Price | $ / shares	$ 14.92	[1]
Amount	$ 28,028,000	[1]
Consideration paid other than previously held investment	$ 28,271,000
Warrants held by Aphria
Number of shares | shares	322,365	[2]
Amount	$ 243,000	[2]
Total consideration paid	507,281,000
Current assets
Cash and cash equivalents	35,033,000
Accounts receivable	464,000
Prepaids and other current assets	1,142,000
Inventory	401,000
Long-term assets
Capital assets	4,743,000
Intellectual property, trademarks & brands	3,700,000
Licences, permits & applications	131,600,000
Goodwill	377,221,000
Total assets	554,304,000
Current liabilities
Accounts payable and accrued liabilities	11,000,000
Long-term liabilities
Deferred tax liability	36,023,000
Total liabilities	47,023,000
Total net assets acquired	$ 507,281,000
Risk-free rate (as a percent)	2.19%
Volatility (as a percent)	30.00%
Forfeiture rate (as a percent)	0.00%
Dividend yield (as a percent)	0.00%
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place	$ 19,611,000
Transaction costs	$ 3,439,000
Minimum
Long-term liabilities
Expected life	1 year
Exercise price (in Canadian dollars per share)	$ 2.52
Maximum
Long-term liabilities
Expected life	10 years
Exercise price (in Canadian dollars per share)	$ 20.30

[1] Share price based on the price of the shares on March 23, 2018; shares held by Aphria include the cash consideration paid.

[2] Options and warrants are valued using the Black-Scholes option pricing model using the following assumptions: the risk-free rate of 2.19%; expected life of 1 10 years; volatility of 30% based on volatility used for similar instruments on the open market; forfeiture rate of nil; dividend yield of nil; and the exercise price of $2.52 - $20.30.

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Business Acquisitions - Acquisition of LATAM Holdings Inc. (Details) - LATAM Holdings Inc $ / shares in Units, $ in Thousands		Sep. 27, 2018 USD ($)	Sep. 27, 2018 CAD ($) USD ($) $ / shares	Jul. 17, 2018 USD ($)	Jul. 17, 2018 CAD ($)
Business Acquisitions
Percentage of voting interest acquired				100.00%	100.00%
Number of shares issued	[1]		15,678,310
Purchase price			$ 273,900		$ 193,000
Short-term liabilities assumed				$ 1,000,000	1,310
Consideration paid
Number of shares	[1]		15,678,310
Share price | $ / shares	[1]		$ 17.47
Amount	[1]		$ 273,900
Total consideration paid			273,900		$ 193,000
Current assets
Cash and cash equivalents			2,704
Accounts receivable			571
Prepaids and other current assets			106
Inventory			65
Long-term assets
Capital assets			494
Licences, permits & applications			123,956
Goodwill			189,188
Total assets			317,084
Current liabilities
Accounts payable and accrued liabilities			1,986
Income taxes payable			20
Long-term liabilities
Deferred tax liability			29,837
Total liabilities			31,843
Non-controlling interest			11,341
Total net assets acquired			$ 273,900
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place		$ 4,556,000
Transaction costs		$ 1,133,000

[1] Share price based on the price of the shares on September 27th, 2018.

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Business Acquisitions - Acquisition of CC Pharma GmbH (Details) - CC Pharma GmbH € in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($)	Nov. 07, 2018	Nov. 07, 2017 EUR (€)	Nov. 07, 2017 CAD ($)
Business Acquisitions
Percentage of voting interest acquired		100.00%
Consideration
Cash			€ 18,920	$ 28,775
Contingent consideration			€ 23,500	35,741
Total consideration paid				64,516
Current assets
Cash and cash equivalents				7,237
Accounts receivable				33,989
Prepaids and other current assets				14,616
Inventory				28,352
Long-term assets
Capital assets				6,373
Customer relationships				21,300
Non-compete agreements				1,400
Intellectual property, trademarks & brands				16,200
Goodwill				6,146
Total assets				135,613
Current liabilities
Bank loans and overdrafts				20,255
Accounts payable and accrued liabilities				44,111
Income taxes payable				672
Long-term liabilities
Deferred tax liability				6,059
Total liabilities				71,097
Total net assets acquired				$ 64,516
Revenue within the prior year for the Company would have been higher, if the acquisition had taken place	$ 367,200
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place	9,955
Transaction costs	$ 595

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Business Acquisitions - Goodwill (Details) £ in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 GBP (£) entity	May 31, 2019 CAD ($) entity	May 31, 2018 CAD ($)
Business Acquisitions
Goodwill		$ 669,846	$ 522,762
Number of reporting units | entity	3	3
Impairment of goodwill		$ 50,000
Impairment related to uncollectible promissory notes receivable	£ 4,600	8,039
Total impairment		58,039
CannWay
Business Acquisitions
Goodwill		1,200	1,200
Broken Coast Cannabis Ltd.
Business Acquisitions
Goodwill		146,091	145,794
Nuuvera Corp
Business Acquisitions
Goodwill		377,221	$ 375,768
LATAM Holdings Inc
Business Acquisitions
Goodwill		139,188
CC Pharma GmbH
Business Acquisitions
Goodwill		$ 6,146
Colcanna
Business Acquisitions
Discount rates used previously		31.00%
Discount rates used current		21.30%
ABP
Business Acquisitions
Discount rates used previously		36.50%
Discount rates used current		33.00%
Marigold
Business Acquisitions
Discount rates used previously		23.30%
Discount rates used current		38.50%

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Convertible notes receivable (Details) - CAD ($) $ / shares in Units, $ in Thousands					12 Months Ended
	Apr. 10, 2019	Dec. 28, 2018	Jul. 26, 2018	Aug. 14, 2017	May 31, 2019	May 31, 2018	Apr. 10, 2021
Convertible notes receivable
Convertible notes receivable					$ 32,230	$ 18,071
Deduct - current portion					(11,500)	(1,942)
Convertible notes receivable, noncurrent					20,730	16,129
Unrealized (loss) gain on recognition of convertible notes					(3,399)	4,135
Convertible notes receivable
Convertible notes receivable
Purchase of Convertible notes					19,500	14,001
Unrealized (loss) gain on recognition of convertible notes					$ (3,399)	5,943
Volatility					70.00%
Forfeiture rate					0.00%
Dividend yield					0.00%
Convertible notes receivable | Minimum
Convertible notes receivable
Risk-free rate					0.85%
Convertible notes receivable | Maximum
Convertible notes receivable
Risk-free rate					1.51%
Copperstate Farms Investors, LLC
Convertible notes receivable
Convertible notes receivable						1,942
HydRx Farms Ltd.(d/b/a Scientus Pharma)
Convertible notes receivable
Convertible notes receivable					$ 11,500	$ 16,129
HydRx Farms Ltd.(d/b/a Scientus Pharma) | Secured
Convertible notes receivable
Convertible notes receivable					11,500
Purchase of Convertible notes				$ 11,500
Interest rate (as a percent)				8.00%
Convertible notes receivable, term				2 years
Conversion price (in Canadian dollars per share)				$ 2.75
Price per share (in Canadian dollars per share)				$ 3.02
Number of days traded				30 days
Loss from change in fair value					4,629
Fire & Flower Inc.
Convertible notes receivable
Convertible notes receivable					11,166
Fire & Flower Inc. | Unsecured
Convertible notes receivable
Convertible notes receivable					11,166
Purchase of Convertible notes			$ 10,000
Interest rate (as a percent)			8.00%
Loss from change in fair value					1,166
Interest rate on loans (as a percent)			12.00%
Fire & Flower Inc. | Unsecured | Minimum
Convertible notes receivable
Conversion price (in Canadian dollars per share)			$ 1.15
10330698 Canada Ltd. (d/b/a Starbuds)
Convertible notes receivable
Convertible notes receivable					5,204
10330698 Canada Ltd. (d/b/a Starbuds) | Secured
Convertible notes receivable
Convertible notes receivable					5,204
Purchase of Convertible notes		$ 5,000
Interest rate (as a percent)		8.50%
Conversion price (in Canadian dollars per share)		$ 0.50
Loss from change in fair value					204
High Tide Inc
Convertible notes receivable
Convertible notes receivable					4,360
High Tide Inc | Unsecured
Convertible notes receivable
Convertible notes receivable					4,360
Purchase of Convertible notes	$ 4,500
Interest rate (as a percent)	10.00%
Conversion price (in Canadian dollars per share)							$ 0.75
Loss from change in fair value					$ 140
Number of shares held by the entity					6,000,000

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Interest in equity investees (Details) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Interest in equity investees
Interest in equity investees	$ 9,311	$ 4,966
Althea
Interest in equity investees
Interest in equity investees	$ 9,311	$ 4,966

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Interest in equity investees - Liberty Health Sciences (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jul. 31, 2018 CAD ($) $ / shares shares	Feb. 28, 2018 USD ($)	May 31, 2019 CAD ($)
Interest in equity investees
Termination fee			$ 1,000
Liberty Health Sciences Inc.
Interest in equity investees
Discount rate on market price of newly freely trading shares		18.00%
Number of days		10
Termination fee			$ 2,500
Shares released from escrow | shares	16,029,615
Gross proceeds	$ 11,514
Recognized gain on sale of equity investee	9,880
Cash paid in exchange for option to buy back shares	$ 480
Share Price | $ / shares	$ 1.00
Buyback price per share | $ / shares	$ 1.25

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Interest in equity investees - Obligation Agreement (Details) - CAD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 19, 2020	May 31, 2019	May 31, 2018
Interest in equity investees
Termination fee		$ 1,000
Net loss		(16,499)	$ 29,448
Net comprehensive loss		(119)	(801)
Loss from equity investment		1,123	9,281
Liberty Health Sciences Inc.
Interest in equity investees
Termination fee		$ 2,500
Shares divested in exchange for consideration in the form of promissory note		64,118,462
Value of shares divested in exchange for consideration in the form of promissory note		$ 59,098
Bearing interest rate		12.00%
Term (in years)		5 years
Percent of annual fee		12.975%
Recognized gain on sale of equity investee		$ 57,351
Cash payment	$ 47,448
Contingent payment	$ 10,000
Maximum period of monetizing the assets held under the option	6 months
Total gain on dilution of ownership in equity investee			7,535
Net loss			24,671
Net comprehensive loss			$ 26,798

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Interest in equity investees - Althea (Details) $ in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 AUD ($) shares	May 31, 2019 CAD ($) shares	May 31, 2018 CAD ($) shares	May 31, 2019 CAD ($) shares
Interest in equity investees
Net loss		$ (16,499)	$ 29,448
Net loss		1,123	9,281
Total proceeds from shares issued		$ 245,925	$ 195,661
Althea
Interest in equity investees
Common shares held | shares	50,750,000		4,500	50,750,000
Ownership percent held	25.00%	25.00%	37.50%
Net loss	$ 4,368
Share split ratio	7,500	7,500
Common shares issued | shares	101,310,000	101,310,000
Total proceeds from shares issued	$ 19,650
Contributions made by Company	3,400	$ 3,258
Total gain on dilution of ownership in equity investee		$ 2,210
Fair value of shares based on the closing share price	$ 36,032			$ 33,776

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Interest in equity investees - Financial information (Details) - CAD ($) $ in Thousands	May 31, 2019	Mar. 31, 2019	May 31, 2018	Mar. 31, 2018
Interest in equity investees
Current assets	$ 780,829		$ 194,612
Current liabilities	$ (138,545)		$ (43,854)
Althea
Interest in equity investees
Current assets		$ 18,210		$ 3,857
Non-current assets		1,125		3
Current liabilities		(655)		(14)
Net assets		$ 18,680		$ 3,846

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Interest in equity investees - Reconciliation to Carrying Amount (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Interest in equity investees
Opening balance	$ 4,966
Closing balance	9,311	$ 4,966
Althea
Interest in equity investees
Opening balance	4,966
Transfer from long-term investments		2,483
Cash contributions, net of share issuance costs	3,258	2,497
Total gain on dilution of ownership in equity investee	2,210
Share of reported net loss	(1,123)	(14)
Closing balance	$ 9,311	$ 4,966

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Long-term investments - Rollforward (Details) $ in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 USD ($) Y	May 31, 2019 CAD ($) Y	May 31, 2018 CAD ($)
Long-term investments
Cost			$ 35,016
Fair value, balance at the beginning		$ 46,028
Investment		133,138
Divesture/ Transfer		(103,504)
Total changes		75,662
Change in fair value		(10,740)
Fair value, balance at the end		$ 64,922
Warrants
Long-term investments
Volatility (as a percent)	70.00%	70.00%
Forfeiture rate (as a percent)	0.00%	0.00%
Dividend yield (as a percent)	0.00%	0.00%
Warrants | Minimum
Long-term investments
Risk-free rate (as a percent)	0.75%	0.75%
Expected life | Y	1	1
Warrants | Maximum
Long-term investments
Risk-free rate (as a percent)	1.70%	1.70%
Expected life | Y	2	2
Assets held for sale
Long-term investments
Cost			(11,162)
Fair value, balance at the beginning		$ 20,000
Divesture/ Transfer		20,000
Level 1
Long-term investments
Cost			24,321
Fair value, balance at the beginning		33,600
Investment		46,802
Divesture/ Transfer		(26,388)
Total changes		54,014
Change in fair value		(12,211)
Fair value, balance at the end		41,803
Level 2
Long-term investments
Cost			5,489
Fair value, balance at the beginning		2,567
Investment		16,787
Divesture/ Transfer		(19,354)
Level 3
Long-term investments
Cost			16,368
Fair value, balance at the beginning		29,861
Investment		69,549
Divesture/ Transfer		(77,762)
Total changes		21,648
Change in fair value		1,471
Fair value, balance at the end		23,119
Green Acre Capital Fund I
Long-term investments
Fair value, balance at the end		4,290
Green Acre Capital Fund I | Level 3
Long-term investments
Cost			1,600
Fair value, balance at the beginning		2,042
Investment		400
Total changes		2,442
Change in fair value		1,848
Fair value, balance at the end		4,290
Green Acre Capital Fund II | Level 3
Long-term investments
Investment		3,000
Divesture/ Transfer		(3,000)
US legalization options | Level 3
Long-term investments
Investment		54,762
Divesture/ Transfer		(54,762)
CannaRoyalty Corp. | Level 1
Long-term investments
Cost			1,500
Fair value, balance at the beginning		3,765
Divesture/ Transfer		(3,765)
MassRoots, Inc. | Level 1
Long-term investments
Cost			304
Fair value, balance at the beginning		164
Divesture/ Transfer		(164)
Tetra Bio-Pharma Inc.
Long-term investments
Fair value, balance at the end		17,216
Tetra Bio-Pharma Inc. | Level 1
Long-term investments
Cost			2,300
Fair value, balance at the beginning		6,800
Investment		16,757
Total changes		23,557
Change in fair value		(6,341)
Fair value, balance at the end		17,216
Hiku Brands Company Ltd. | Level 1
Long-term investments
Cost			9,775
Fair value, balance at the beginning		13,558
Divesture/ Transfer		(13,558)
Hiku Brands Company Ltd. | Level 2
Long-term investments
Cost			2,336
Fair value, balance at the beginning		1,906
Investment		16,787
Divesture/ Transfer		(18,693)
Scythian Biosciences Corp. | Level 1
Long-term investments
Cost			9,349
Fair value, balance at the beginning		8,603
Investment		298
Divesture/ Transfer		(8,901)
Scythian Biosciences Corp. | Level 2
Long-term investments
Cost			3,153
Fair value, balance at the beginning		661
Divesture/ Transfer		(661)
National Access Cannabis Corp.
Long-term investments
Fair value, balance at the end		7,941
National Access Cannabis Corp. | Level 1
Long-term investments
Cost			1,093
Fair value, balance at the beginning		710
Investment		10,481
Total changes		11,191
Change in fair value		(4,044)
Fair value, balance at the end		7,147
Aleafia Health Inc
Long-term investments
Fair value, balance at the end		8,445
Aleafia Health Inc | Level 1
Long-term investments
Investment		10,000
Total changes		10,000
Change in fair value		(1,555)
Fair value, balance at the end		8,445
Rapid Dose Therapeutics Inc
Long-term investments
Fair value, balance at the end		5,832
Rapid Dose Therapeutics Inc | Level 1
Long-term investments
Investment		5,400
Total changes		5,400
Change in fair value		432
Fair value, balance at the end		5,832
Fire & Flower Inc. | Level 1
Long-term investments
Investment		3,416
Total changes		3,416
Change in fair value		(593)
Fair value, balance at the end		2,823
High Tide Inc
Long-term investments
Fair value, balance at the end		340
High Tide Inc | Level 1
Long-term investments
Investment		450
Total changes		450
Change in fair value		(110)
Fair value, balance at the end		340
Copperstate Farms, LLC | Level 3
Long-term investments
Cost			1,755
Fair value, balance at the beginning		5,300
Divesture/ Transfer		(5,300)
Copperstate Farms Investors, LLC | Level 3
Long-term investments
Cost			9,407
Fair value, balance at the beginning		14,700
Divesture/ Transfer		(14,700)
Resolve Digital Health Inc. One | Level 3
Long-term investments
Cost			718
Fair value, balance at the beginning		3,300
Total changes		3,300
Change in fair value		(2,200)
Fair value, balance at the end		1,100
Resolve Digital Health Inc. Two | Level 3
Long-term investments
Cost			282
Fair value, balance at the beginning		1,916
Total changes		1,916
Change in fair value		(1,634)
Fair value, balance at the end		282
Green Tank Holdings Corp.
Long-term investments
Fair value, balance at the end	$ 3,943	5,334
Green Tank Holdings Corp. | Level 3
Long-term investments
Cost			650
Fair value, balance at the beginning		647
Investment		1,240
Total changes		1,887
Change in fair value		3,447
Fair value, balance at the end		5,334
IBBZ Krankenhaus GmbH | Level 3
Long-term investments
Cost			$ 1,956
Fair value, balance at the beginning		1,956
Total changes		1,956
Change in fair value		9
Fair value, balance at the end		1,965
Greenwell Brands GmbH | Level 3
Long-term investments
Investment		152
Total changes		152
Change in fair value		1
Fair value, balance at the end		153
HighArchy Ventures Ltd. | Level 3
Long-term investments
Investment		9,995
Total changes		9,995
Fair value, balance at the end		$ 9,995

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Long-term investments - Additional Information (Details) $ / shares in Units, € in Thousands, $ in Thousands, $ in Thousands	1 Months Ended			12 Months Ended
	Oct. 31, 2018 CAD ($) shares	Sep. 30, 2018 EUR (€) shares	Sep. 30, 2018 CAD ($) shares	May 31, 2019 USD ($) item shares	May 31, 2019 CAD ($) item shares	May 31, 2019 EUR (€) shares	May 31, 2019 CAD ($) $ / shares shares	May 31, 2018 CAD ($)
Long-term investments
Gain (loss) from sale of investment					$ 30,391
Fair value of investment							$ 64,922	$ 46,028
CannaRoyalty Corp.
Long-term investments
Number of investment shares sold | shares				750,000	750,000
Proceeds from sale of investment					$ 4,111
Gain (loss) from sale of investment					$ 346
MassRoots, Inc.
Long-term investments
Number of investment shares sold | shares				500,000	500,000
Proceeds from sale of investment					$ 1
Gain (loss) from sale of investment					$ 163
Tetra Bio-Pharma Inc.
Long-term investments
Number of investment units purchased | shares				6,900,000	6,900,000
Cost of investment unit					$ 7,107
Number of shares per unit | item				1	1
Number of warrants per unit | item				1	1
Warrants exercise price | $ / shares							$ 1.29
Number of investment shares purchased | shares				10,000,000	10,000,000
Cost of investment shares					$ 9,650
Number of shares held by the entity | shares				26,900,000		26,900,000	26,900,000
Number of warrants held by the entity | shares				6,900,000		6,900,000	6,900,000
Total cost of investment							$ 19,057
Fair value of investment							$ 17,216
Hiku Brands Company Ltd.
Long-term investments
Proceeds from sale of investment					48,153
Gain (loss) from sale of investment					$ 15,902
Warrants exercise price | $ / shares							$ 2.10
Number of warrants exercised | shares				7,993,605		7,993,605	7,993,605
Scythian Biosciences Corp.
Long-term investments
Number of investment shares sold | shares				2,812,300	2,812,300
Number of common share purchase warrants sold | shares				672,125	672,125
Proceeds from sale of investment					$ 6,609
Gain (loss) from sale of investment					$ 2,953
Number of investment shares purchased | shares				123,800	123,800
Cost of investment shares					$ 298
National Access Cannabis Corp.
Long-term investments
Number of investment shares purchased | shares				10,344,505	10,344,505
Cost of investment shares					$ 10,481
Number of shares held by the entity | shares				11,344,505		11,344,505	11,344,505
Total cost of investment							$ 11,574
Fair value of investment							$ 7,941
Aleafia Health Inc
Long-term investments
Number of shares held by the entity | shares				5,823,831		5,823,831	5,823,831
Total cost of investment							$ 10,000
Fair value of investment							$ 8,445
Term of supply agreement				5 years	5 years
Number of shares received by investment entity | shares				6,952,169		6,952,169	6,952,169
Deposit value							$ 10,000
Rapid Dose Therapeutics Inc
Long-term investments
Number of investment shares purchased | shares				7,200,000	7,200,000
Cost of investment shares					$ 5,400
Fair value of investment							$ 5,832
Fire & Flower Inc.
Long-term investments
Number of investment shares purchased | shares				2,277,000	2,277,000
Cost of investment shares					$ 3,416
Number of shares held by the entity | shares				2,823		2,823	2,823
High Tide Inc
Long-term investments
Warrants exercise price | $ / shares							$ 0.85
Number of warrants received by investment entity | shares				6,000,000		6,000,000	6,000,000
Number of shares held by the entity | shares				943,396		943,396	943,396
Number of warrants held by the entity | shares				6,000,000		6,000,000	6,000,000
Total cost of investment							$ 450
Fair value of investment							$ 340
Number of shares received by investment entity | shares				943,396		943,396	943,396
Copperstate Farms, LLC and Copperstate Farms Investors, LLC
Long-term investments
Proceeds from sale of investment					$ 20,000
Resolve Digital Health Inc.
Long-term investments
Warrants exercise price | $ / shares							$ 0.65
Number of shares held by the entity | shares				2,200,026		2,200,026	2,200,026
Number of warrants held by the entity | shares				2,200,026		2,200,026	2,200,026
Total cost of investment							$ 1,000
Fair value of investment							1,382
Green Tank Holdings Corp.
Long-term investments
Number of investment shares purchased | shares				359,208	359,208
Cost of investment shares				$ 920	$ 1,240
Fair value of investment				$ 3,943			$ 5,334
Number of shares received by investment entity | shares				1,082,675		1,082,675	1,082,675
Green Tank Holdings Corp. | Preferred shares
Long-term investments
Number of shares held by the entity | shares				1,540,308		1,540,308	1,540,308
Total cost of investment				$ 1,420			$ 1,890
IBBZ Krankenhaus GmbH
Long-term investments
Voting interest held by entity				25.10%	25.10%
Total cost of investment						€ 1,294	$ 1,956
Percentage of net income (loss) entitled by the entity, year 1 to 4				5.00%	5.00%
Percentage of net income (loss) entitled by the entity, thereafter				10.00%	10.00%
Loss from change in fair value due to changes in foreign exchange rate					$ (5)
Greenwell Brands GmbH
Long-term investments
Number of investment shares purchased | shares		1,250	1,250
Cost of investment shares		€ 100	$ 152
HighArchy Ventures Ltd.
Long-term investments
Cost of investment shares	$ 9,995
Share split ratio	10,000
HighArchy Ventures Ltd. | Class A shares
Long-term investments
Number of investment shares purchased | shares	1,999
HighArchy Ventures Ltd. | Class B shares
Long-term investments
Number of investment shares purchased | shares	1,999

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Long-term investments - US legalization options and Green Acre Capital Fund I and II (Details) - CAD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Long-term investments
Proceeds from convertible debentures	$ 454,386
Fair value of investment	64,922	$ 46,028
Gain (loss) from sale of investment	$ 30,391
US legalization options | Liberty Health Sciences Inc.
Long-term investments
Number of options purchased to acquire shares of common stock	16,029,615
Share Price	$ 1.00
Threshold price per share for specific downside risk protection	$ 1.25
Cash paid in exchange for option to buy back shares	$ 480
Shares divested in exchange for consideration in the form of promissory note	64,118,462
Gross annual fee as cost of option	$ 7,668
Interest income associated with the promissory note receivable	7,092
Net annual cost	576
Proceeds from convertible debentures	47,448
Contingent fee upon satisfaction of certain conditions	10,000
US legalization options | GA Opportunities Corp
Long-term investments
Gross annual fee as cost of option	6,765
Interest income associated with the promissory note receivable	6,600
Net annual cost	165
Proceeds from convertible debentures	89,000
Fair value of assets contributed	55,000
Cost of investment	55,000
Cash proceeds from sale of option and promissory note due within six months	39,000
Green Acre Capital Fund I
Long-term investments
Cost of investment	2,000
Fair value of investment	4,290
Proceeds from return of capital from investment	700
Green Acre Capital Fund II
Long-term investments
Amount committed to invest	15,000
Cost of investment	3,000
Proceeds from sale of investment	500
Gain (loss) from sale of investment	$ 2,500

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Promissory notes receivable (Details) € in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 EUR (€)	May 31, 2019 CAD ($)
Disclosure of detailed information about promissory notes receivable
Additions		$ 167,859
Disposal / Impairment		(128,659)
Balance at the end of the year		39,200
Promissory notes receivable
Disclosure of detailed information about promissory notes receivable
Impairment of promissory note receivable	€ 4,600	0
Promissory note due on September 6, 2023
Disclosure of detailed information about promissory notes receivable
Additions		59,098
Disposal / Impairment		$ (59,098)
Promissory notes receivable interest (as percent)	12.00%	12.00%
Promissory note due on September 24, 2023
Disclosure of detailed information about promissory notes receivable
Additions		$ 55,000
Disposal / Impairment		$ (55,000)
Promissory notes receivable interest (as percent)	12.00%	12.00%
Promissory note due on October 15, 2019
Disclosure of detailed information about promissory notes receivable
Additions		$ 39,000
Balance at the end of the year		$ 39,000
Promissory notes receivable interest (as percent)	3.00%	3.00%
Promissory note due on October 11, 2021
Disclosure of detailed information about promissory notes receivable
Additions		$ 7,952
Disposal / Impairment		$ (7,952)
Promissory notes receivable interest (as percent)	3.25%	3.25%
Promissory note due on October 31, 2023
Disclosure of detailed information about promissory notes receivable
Additions		$ 6,609
Disposal / Impairment		$ (6,609)
Promissory notes receivable interest (as percent)	12.00%	12.00%
Promissory note with Interest free due on May 1, 2020
Disclosure of detailed information about promissory notes receivable
Additions		$ 200
Balance at the end of the year		$ 200

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Income taxes and deferred income taxes - Reconciliation of Income Taxes at Statutory Rate (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Income taxes and deferred income taxes
Income (loss) before income taxes (recovery)	$ (15,645)	$ 35,856
Statutory rate	26.50%	26.50%
Expected income tax expense (recovery) at combined basic federal and provincial tax rate	$ (4,146)	$ 9,502
Effect on income taxes of:
Foreign tax differential	(539)
Permanent differences	1,137	65
Non-deductible share-based compensation and other expenses	20,161	4,737
Non-taxable portion of losses (gains)	(15,504)	(7,162)
Other	(648)	(768)
Tax assets not recognized	393	34
Total tax expense (income)	854	6,408
Current	4,944	2,750
Future	(4,090)	3,658
Total tax expense (income)	$ 854	$ 6,408

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Income taxes and deferred income taxes - Components of deferred tax (Details) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Deferred tax assets
Non-capital loss carry forward	$ 20,133	$ 4,567
Capital loss carry forward		405
Share issuance and financing fees	9,689	5,443
Unrealized loss		916
Other	1,102	27
Deferred tax liabilities
Net book value in excess of undepreciated capital cost	(2,751)	(1,017)
Intangible assets in excess of tax costs	(101,271)	(64,120)
Unrealized gain	(6,534)	(1,097)
Biological assets and inventory in excess of tax costs	(8,001)	(4,377)
Net deferred tax assets (liabilities)	$ (87,633)	$ (59,253)

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Bank indebtedness (Details) $ in Thousands	May 31, 2019 CAD ($)
Bank indebtedness
Maximum borrowing capacity	$ 1,000
Adjustment to interest rate basis (as a percent)	0.75%

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Promissory note payable (Details) $ in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 AUD ($)	May 31, 2019 CAD ($)	May 31, 2018 AUD ($)	May 31, 2018 CAD ($)	May 31, 2019 CAD ($)	May 31, 2018 CAD ($)
Promissory note payable
Balance at the beginning of the year	$ 700	$ 610		$ 686
Note payable to Althea	$ 700		$ 700		$ (686)	$ (686)
Reduction of promissory note payable balance with respect to products provided		(581)		(63)
Foreign exchange (gain) loss		(29)		(13)
Balance at the end of the year		$ 0	$ 700	$ 610
Deduct - principal portion included in current liabilities						(610)
Promissory note payable non-current					$ 0	$ 0

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Long-term debt (Details) € in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 EUR (€)	May 31, 2019 CAD ($)	May 31, 2018 CAD ($)
Long-term debt
Balance of obligation		$ 67,343	$ 30,548
Unamortized financing fees		(116)	(71)
Principal portion included in current liabilities		(6,332)	(2,140)
Long-term debt		$ 60,895	28,337
Adjustment to interest rate basis (as a percent)	0.75%	0.75%
Canadian five year bond interest rate plus 2.73% with a minimum 4.50%
Long-term debt
Balance of obligation		$ 24,022
Notional Amount		$ 25,000
Adjustment to interest rate basis (as a percent)	2.73%	2.73%
Maturity term	5 years
Amortization period	15 years
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | Minimum
Long-term debt
Bearing interest rate	4.50%	4.50%
Term loan with interest rate 3.95% compounded monthly
Long-term debt
Balance of obligation		$ 23,352	24,107
Notional Amount		$ 25,000
Bearing interest rate	3.95%	3.95%
Maturity term	5 years
Amortization period	15 years
Debt amount repayable in instalment		$ 188
Term loan with interest rate 3.99%
Long-term debt
Balance of obligation		946	1,057
Notional Amount		$ 1,250
Bearing interest rate	3.99%	3.99%
Maturity term	5 years
Amortization period	10 years
Debt amount repayable in instalment		$ 13
Mortgage payable with interest rate 3.95%
Long-term debt
Balance of obligation		3,380	3,515
Notional Amount		$ 3,750
Bearing interest rate	3.95%	3.95%
Maturity term	5 years
Amortization period	20 years
Debt amount repayable in instalment		$ 23
Vendor take-back mortgage owed to a related party with interest rate 6.75%
Long-term debt
Balance of obligation		1,305	$ 1,869
Notional Amount		$ 2,850
Bearing interest rate	6.75%	6.75%
Maturity term	5 years
Debt amount repayable in instalment		$ 56
Euro interbank offered rate pus 1.79%
Long-term debt
Balance of obligation		$ 7,169
Notional Amount | €	€ 5,000
Adjustment to interest rate basis (as a percent)	1.79%	1.79%
Maturity term	5 years
Debt amount repayable in instalment | €	€ 250
Euro interbank offered rate pus 2.68%
Long-term debt
Balance of obligation		$ 7,169
Notional Amount | €	€ 5,000
Adjustment to interest rate basis (as a percent)	2.68%	2.68%
Maturity term	5 years
Debt amount repayable in instalment | €	€ 250

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Long-term debt - Repayment (Details) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Long-term debt
Long-term debt subject to fixed interest rates	$ 67,343	$ 30,548
2020
Long-term debt
Long-term debt subject to fixed interest rates	6,332
2021
Long-term debt
Long-term debt subject to fixed interest rates	6,499
2022
Long-term debt
Long-term debt subject to fixed interest rates	6,039
2023
Long-term debt
Long-term debt subject to fixed interest rates	6,119
2024
Long-term debt
Long-term debt subject to fixed interest rates	6,259
Thereafter
Long-term debt
Long-term debt subject to fixed interest rates	$ 36,095

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Long-term debt - Additional information (Details) € in Thousands, $ in Thousands	May 31, 2019 CAD ($)	May 30, 2019 EUR (€)	May 30, 2019 CAD ($)	Nov. 07, 2018 EUR (€)	Nov. 07, 2018 CAD ($)	Jul. 27, 2018 CAD ($)	May 31, 2018 CAD ($)	Feb. 13, 2018 CAD ($)	May 09, 2017 CAD ($)	Jul. 22, 2016 CAD ($)	Jun. 30, 2016 CAD ($)
Long-term debt
Debt	$ 67,343						$ 30,548
Canadian five year bond interest rate plus 2.73% with a minimum 4.50%
Long-term debt
Debt	24,022
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | First charge on the property at 223, 231, 239, 265, 269, 271 and 275 Talbot Street West, t, , Leamington Ontario, o
Long-term debt
Debt						$ 24,022
Interest Rate						4.68%
Term loan with interest rate 3.95% compounded monthly
Long-term debt
Debt	$ 23,352						24,107
Interest Rate	3.95%
Term loan with interest rate 3.95% compounded monthly | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o,
Long-term debt
Debt									$ 23,352
Term loan with interest rate 3.99%
Long-term debt
Debt	$ 946						1,057
Interest Rate	3.99%
Term loan with interest rate 3.99% | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o,
Long-term debt
Debt										$ 946
Mortgage payable with interest rate 3.95%
Long-term debt
Debt	$ 3,380						3,515
Interest Rate	3.95%
Mortgage payable with interest rate 3.95% | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o,
Long-term debt
Debt										$ 3,380
Vendor take-back mortgage owed to a related party with interest rate 6.75%
Long-term debt
Debt	$ 1,305						$ 1,869
Interest Rate	6.75%
Vendor take-back mortgage owed to a related party with interest rate 6.75% | Second charge on the property at 265 Talbot Street West, t, , Leamington, n
Long-term debt
Debt											$ 1,305
Term loan1 | Broken Coast Cannabis Ltd.
Long-term debt
Debt								$ 3,000
Term loan2 | Broken Coast Cannabis Ltd.
Long-term debt
Debt								1,201
Mortgage loan | Broken Coast Cannabis Ltd.
Long-term debt
Debt								$ 1,713
Euro interbank offered rate | CC Pharma GmbH
Long-term debt
Debt		€ 9,500	$ 14,338	€ 17,000	$ 25,460

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Convertible debentures (Details) $ / shares in Units, $ in Thousands, $ in Thousands	12 Months Ended
	May 31, 2019 USD ($) D	May 31, 2019 CAD ($) D $ / shares	May 31, 2018 CAD ($)
Convertible debentures
Principal amount issued		$ 454,386
Balance at the end of the year		421,366
Convertible debentures
Convertible debentures
Balance at the beginning of the year		0	$ 0
Principal amount issued		469,805	0
Fair value adjustment		(48,439)	0
Balance at the end of the year		$ 421,366	$ 0
Maturity term	5 years	5 years
Bearing interest rate	5.25%	5.25%
Conversion basis, holders		$ 1
Initial conversion rate	106.5644	106.5644
Initial conversion price | $ / shares		$ 9.38
Number of trading days | D	30	30
Conversion basis, percentage on conversion price	130	130
Number of Business days | D	5	5
Measurement period | D	5	5
Conversion basis, percentage on sale price and conversion price	98	98
Percentage of Redemption	100	100
Convertible debentures | Minimum
Convertible debentures
Number of trading days | D	20	20
Convertible debentures | Unsecured Loan [Member]
Convertible debentures
Principal amount issued	$ 350,000

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Share capital (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Sep. 30, 2018 $ / shares	Jun. 30, 2018 CAD ($) $ / shares shares	May 31, 2019 CAD ($) USD ($) $ / shares shares	May 31, 2018 CAD ($) shares
Share capital
Balance		$ 1,113,981	$ 1,113,981
Share issuance - warrants exercised			1,723	$ 3,682
Share issuance - options exercised			5,096	4,329
Share issuance - deferred share units			953	62
Balance			1,655,273	1,113,981
Income tax recovery on share issuance costs			$ 3,426	3,002
Shares held | shares			600,000
Broken Coast Cannabis Ltd.
Share capital
Share issuance - acquisition			$ 297	$ 109,000
LATAM Holdings Inc.
Share capital
Share issuance - acquisition			285,241
Purchase Price Per Share Of Acquisition | $ / shares	$ 17.47
June 2018 Bought deal
Share capital
Shares issuance - Bought Deal			245,925
Purchase Price | $ / shares		$ 11.85
Share capital
Share capital
Balance		$ 1,113,981	$ 1,113,981
Balance (in shares) | shares		210,169,924	210,169,924	138,628,704
Share issuance - warrants exercised			$ 1,762	$ 3,767
Share issuance - warrants exercised (in shares) | shares			550,335	2,388,636
Share issuance - options exercised			$ 15,029	$ 11,559
Share issuance - options exercised (in shares)			2,632,078
Share issuance - deferred share units			$ 953	$ 62
Share issuance - deferred share units (in shares) | shares			103,000	5,050
Balance			$ 1,655,273	$ 1,113,981
Income tax recovery on share issuance costs			3,426	3,002
Share capital | Broken Coast Cannabis Ltd.
Share capital
Share issuance - acquisition			$ 297	$ 109,000
Share issuance - acquisition (in shares) | shares			19,963	8,363,651
Share capital | LATAM Holdings Inc.
Share capital
Share issuance - acquisition			$ 273,900
Share issuance - acquisition (in shares) | shares			15,678,310
Share capital | June 2018 Bought deal
Share capital
Shares issuance - Bought Deal			$ 245,925
Shares issuance - Bought Deal (in shares) | shares			21,835,510
Warrants
Share capital
Share issuance - warrants exercised			$ (39)	$ (85)
Warrants | Minimum
Share capital
Exercise price of warrants | $ / shares			$ 1.50
Warrants | Maximum
Share capital
Exercise price of warrants | $ / shares			20.30
Stock options | Minimum
Share capital
Exercise price of stock options | $ / shares			0.60
Stock options | Maximum
Share capital
Exercise price of stock options | $ / shares			$ 20.19

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Warrants - Type Of Warrants (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($) $ / shares shares
Warrant
Warrants
Number of Warrants issued or issuable | shares	2,292,800
Weighted average price | $ / shares	$ 12.25
Warrants Issued, Value | $	$ 1,336
Warrant 2019
Warrants
Number of Warrants issued or issuable | shares	798,997
Weighted average price | $ / shares	$ 1.50
Warrant 2021
Warrants
Number of Warrants issued or issuable | shares	200,000
Weighted average price | $ / shares	$ 3.14
Warrants Issued, Value | $	$ 360
Nuuvera warrant
Warrants
Number of Warrants issued or issuable | shares	1,293,803
Weighted average price | $ / shares	$ 20.30
Warrants Issued, Value | $	$ 976

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Warrants - Rollforward (Details) - Warrant	12 Months Ended
	May 31, 2019 CAD ($) item	May 31, 2018 CAD ($) item
Warrants
Outstanding, beginning of the year (in shares) | item	2,843,138	3,885,908
Issued during the year (in shares) | item		1,345,866
Exercised during the year (in shares) | item	(550,335)	(2,388,636)
Cancelled during the year (in shares) | item	(3)
Outstanding, end of the year (in shares) | item	2,292,800	2,843,138
Outstanding, beginning of the year (in Canadian dollars per share) | $	$ 10.52	$ 1.61
Issued during the year (in Canadian dollars per share) | $		20.30
Exercised during the year (in Canadian dollars per share) | $	3.29	1.54
Cancelled during the year (in Canadian dollars per share) | $	1.75
Outstanding, end of the year (in Canadian dollars per share) | $	$ 12.25	$ 10.52

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Warrants - Additional information (Details) - Nuuvera Corp	Mar. 31, 2018 $ / shares shares
Warrants
Number of warrants | shares	3,795,450
Exercise price	$ 7.20
Shares issued per share	0.3546
Total consideration in cash	$ 0.62
Shares
Warrants
Common shares for issuance | shares	1,345,866

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Stock options - Narrative (Details) - Stock options $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($) Y	May 31, 2018 CAD ($)
Stock options
Maximum number of shares reserved for issuance of stock options (in percent)	10.00%
Share-based compensation expense	$ 24,078	$ 15,780
Fair value of options granted	$ 21,952	$ 28,912
Maximum
Stock options
Options exercisable term (in years) | Y	10

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Stock options - Rollforward (Details) - Stock options	12 Months Ended
	May 31, 2019 CAD ($) Options	May 31, 2018 CAD ($) Options
Stock options
Outstanding, beginning of the year (in shares) | Options	8,956,195	5,926,001
Exercised during the year (in shares) | Options	(3,164,174)	(2,637,363)
Issued during the year (in shares) | Options	3,005,000	6,703,330
Cancelled during the year (in shares) | Options	(982,025)	(1,035,773)
Outstanding, end of the year (in shares) | Options	7,814,996	8,956,195
Exercisable, end of the year (in shares) | Options	4,474,966	4,507,696
Outstanding, beginning of the year (in Canadian dollars per share) | $	$ 7.60	$ 1.99
Exercised during the year (in Canadian dollars per share) | $	4.05	2.3
Issued during the year (in Canadian dollars per share) | $	13.05	11.12
Cancelled during the year (in Canadian dollars per share) | $	8.27	11.77
Outstanding, end of the year (in Canadian dollars per share) | $	11.05	7.60
Exercisable, end of the year (in Canadian dollars per share) | $	$ 9.54	$ 4.04

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Stock options - Granted and Exercise price range (Details) - Stock options		1 Months Ended						12 Months Ended
	May 31, 2019 Options Y	Apr. 30, 2019 CAD ($) Options Y	Feb. 28, 2019 CAD ($) Options Y	Oct. 31, 2018 CAD ($) Options Y	Sep. 30, 2018 CAD ($) Options Y	Jul. 31, 2018 CAD ($) Options Y	Jun. 30, 2018 CAD ($) Options Y	May 31, 2019 Options Y	May 31, 2018 Options
Stock options
Issued during the year (in shares)								3,005,000	6,703,330
Vested during the year (in shares)								3,164,174	2,637,363
Options cancelled (in shares)								982,025	1,035,773
Maximum
Stock options
Stock options Exercisable (in years) | Y	10							10
Exercise price $11.78 per share | Officers
Stock options
Issued during the year (in shares)							250,000
Exercise price (in Canadian dollars per share) | $							$ 11.78
Stock options Exercisable (in years) | Y							3
Vested during the year (in shares)							83,331
Remaining period to be vested (in years)							2 years
Options cancelled (in shares)	133,335
Exercise price between $11.51 and $11.85 per share | Employees
Stock options
Issued during the year (in shares)						820,000
Stock options Exercisable (in years) | Y						5
Vested during the year (in shares)						50,000
Remaining period to be vested (in years)						3 years
Options cancelled (in shares)	50,000
Exercise price between $11.51 and $11.85 per share | Employees | Minimum
Stock options
Exercise price (in Canadian dollars per share) | $						$ 11.51
Exercise price between $11.51 and $11.85 per share | Employees | Maximum
Stock options
Exercise price (in Canadian dollars per share) | $						$ 11.85
Exercise price $19.38 per share | Employees
Stock options
Issued during the year (in shares)					250,000
Exercise price (in Canadian dollars per share) | $					$ 19.38
Stock options Exercisable (in years) | Y					5
Vested during the year (in shares)					0
Remaining period to be vested (in years)					3 years
Options cancelled (in shares)	33,334
Exercise price $19.70 per share | Employees
Stock options
Issued during the year (in shares)				80,000
Exercise price (in Canadian dollars per share) | $				$ 19.70
Stock options Exercisable (in years) | Y				5
Vested during the year (in shares)				0
Remaining period to be vested (in years)				3 years
Exercise price between $9.92 and $13.31 per share | Officers and employees
Stock options
Issued during the year (in shares)			1,525,000
Vested during the year (in shares)			1,100,000
Remaining period to be vested (in years)			3 years
Options cancelled (in shares)	30,000
Exercise price between $9.92 and $13.31 per share | Officers and employees | Minimum
Stock options
Exercise price (in Canadian dollars per share) | $			$ 9.92
Stock options Exercisable (in years) | Y			3
Exercise price between $9.92 and $13.31 per share | Officers and employees | Maximum
Stock options
Exercise price (in Canadian dollars per share) | $			$ 13.31
Stock options Exercisable (in years) | Y			5
Exercise price $11.45 per share | Employees
Stock options
Issued during the year (in shares)		80,000
Exercise price (in Canadian dollars per share) | $		$ 11.45
Stock options Exercisable (in years) | Y		5
Vested during the year (in shares)		0
Remaining period to be vested (in years)		3 years

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Stock options - Outstanding options and fair value of options (Details) - Stock options	May 31, 2019 CAD ($) Options	May 31, 2018 CAD ($) Options	May 31, 2017 CAD ($) Options
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.05	$ 7.60	$ 1.99
Number of options (in shares)	7,814,996	8,956,195	5,926,001
Vested and exercisable (in shares)	4,474,966	4,507,696
September 2019
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 3.00
Number of options (in shares)	42,365
Vested and exercisable (in shares)	42,365
November 2019
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 3.90
Number of options (in shares)	591,318
Vested and exercisable (in shares)	591,318
December 2019
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 5.25
Number of options (in shares)	400,000
Vested and exercisable (in shares)	33,333
January 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 5.72
Number of options (in shares)	1,834
Vested and exercisable (in shares)	1,834
April 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 7.92
Number of options (in shares)	38,334
Vested and exercisable (in shares)	38,334
June 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 5.44
Number of options (in shares)	133,334
Vested and exercisable (in shares)	116,667
July 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 5.24
Number of options (in shares)	538,660
Vested and exercisable (in shares)	434,983
September 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 0.85
Number of options (in shares)	185,000
Vested and exercisable (in shares)	185,000
October 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 6.90
Number of options (in shares)	156,667
Vested and exercisable (in shares)	26,666
November 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 9.05
Number of options (in shares)	136,667
Vested and exercisable (in shares)	43,333
November 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 9.28
Number of options (in shares)	50,000
Vested and exercisable (in shares)	33,333
December 2020
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 14.06
Number of options (in shares)	100,000
Vested and exercisable (in shares)	66,666
January 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 21.70
Number of options (in shares)	10,000
Vested and exercisable (in shares)	6,666
January 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 22.89
Number of options (in shares)	143,333
Vested and exercisable (in shares)	86,665
January 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 22.08
Number of options (in shares)	50,000
Vested and exercisable (in shares)	33,333
March 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 14.39
Number of options (in shares)	20,000
Vested and exercisable (in shares)	13,333
March 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 9.98
Number of options (in shares)	200,000
Vested and exercisable (in shares)	133,333
March 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 12.39
Number of options (in shares)	50,000
Vested and exercisable (in shares)	33,333
April 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.40
Number of options (in shares)	380,000
Vested and exercisable (in shares)	266,666
April 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 9.92
Number of options (in shares)	400,000
Vested and exercisable (in shares)	300,000
April 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.45
Number of options (in shares)	66,667
Vested and exercisable (in shares)	33,333
May 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 20.19
Number of options (in shares)	908,500
Vested and exercisable (in shares)	241,832
June 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 1.40
Number of options (in shares)	168,335
Vested and exercisable (in shares)	168,335
June 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.78
Number of options (in shares)	116,665
Vested and exercisable (in shares)	83,331
July 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.85
Number of options (in shares)	150,000
Vested and exercisable (in shares)	50,000
August 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 1.64
Number of options (in shares)	65,000
Vested and exercisable (in shares)	44,991
September 2021
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 19.38
Number of options (in shares)	66,666
Vested and exercisable (in shares)	33,332
October 2022
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 6.90
Number of options (in shares)	74,000
Vested and exercisable (in shares)	74,000
July 2023
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.51
Number of options (in shares)	80,000
July 2023
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.85
Number of options (in shares)	528,000
September 2023
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 19.38
Number of options (in shares)	150,000
October 2023
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 19.70
Number of options (in shares)	80,000
February 2024
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 12.77
Number of options (in shares)	395,000
February 2024
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 13.31
Number of options (in shares)	1,000,000
Vested and exercisable (in shares)	1,000,000
April 2024
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 11.45
Number of options (in shares)	80,000
July 2027
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 2.52
Number of options (in shares)	59,689
Vested and exercisable (in shares)	59,689
November 2027
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 6.29
Number of options (in shares)	39,792
Vested and exercisable (in shares)	39,792
March 2028
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 12.29
Number of options (in shares)	119,378
Vested and exercisable (in shares)	119,378
March 2028
Stock options
Weighted average exercise price (in canadian dollars per share) | $	$ 14.38
Number of options (in shares)	39,792
Vested and exercisable (in shares)	39,792

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Stock options - Inputs (Details) - Stock options	12 Months Ended
	May 31, 2019
Stock options
Volatility (as a percent)	70.00%
Forfeiture rate (as a percent)	0.00%
Dividend yield (as a percent)	0.00%
Minimum
Stock options
Risk-free rate (as a percent)	2.00%
Expected life (years)	3 years
Maximum
Stock options
Risk-free rate (as a percent)	2.08%
Expected life (years)	5 years

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Non-controlling interest (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Non-controlling interest
Current assets	$ 780,829	$ 194,612
Current liabilities	(138,545)	(43,854)
Non-controlling interests	28,409	9,580
Revenue	237,110	36,917
Net comprehensive income (loss)	(16,618)	28,647
Non-controlling interest	(1,951)
Subsidiaries
Non-controlling interest
Current assets	10,117	7,313
Non-current assets	307,515	83,207
Current liabilities	(8,173)	(10,085)
Non-current liabilities	(165,389)	(60,884)
Net assets	144,070	19,551
Revenue	230
Total expenses	6,172
Net comprehensive income (loss)	(5,942)
Aphria Diamond
Non-controlling interest
Current assets	2,598	7,313
Non-current assets	171,314	83,207
Current liabilities	(5,743)	(10,085)
Non-current liabilities	(150,892)	(60,884)
Net assets	$ 17,277	$ 19,551
Non-controlling interest %	49.00%	49.00%
Non-controlling interests	$ 8,466	$ 9,580
Total expenses	2,274
Net comprehensive income (loss)	(2,274)
Non-controlling interest	(1,114)
CannInvest Africa Ltd.
Non-controlling interest
Current assets	2
Current liabilities	(3)
Non-current liabilities	(9)
Net assets	$ (10)
Non-controlling interest %	50.00%	0.00%
Non-controlling interests	$ (5)
Total expenses	10
Net comprehensive income (loss)	(10)
Non-controlling interest	(5)
Verve Dynamics
Non-controlling interest
Current assets	185
Non-current assets	14,635
Current liabilities	(2,155)
Net assets	$ 12,665
Non-controlling interest %	70.00%	0.00%
Non-controlling interests	$ 8,866
Total expenses	839
Net comprehensive income (loss)	(839)
Non-controlling interest	(587)
Nuuvera Malta Ltd.
Non-controlling interest
Current assets	1,813
Non-current assets	741
Current liabilities	(178)
Non-current liabilities	(3,196)
Net assets	$ (820)
Non-controlling interest %	10.00%	0.00%
Non-controlling interests	$ (82)
Revenue	230
Total expenses	1,046
Net comprehensive income (loss)	(816)
Non-controlling interest	(82)
Marigold
Non-controlling interest
Current assets	441
Non-current assets	7,872
Current liabilities	(16)
Non-current liabilities	(1,654)
Net assets	$ 6,643
Non-controlling interest %	5.00%	0.00%
Non-controlling interests	$ 332
Total expenses	757
Net comprehensive income (loss)	(757)
Non-controlling interest	(38)
ColCanna S.A.S.
Non-controlling interest
Current assets	5,078
Non-current assets	112,953
Current liabilities	(78)
Non-current liabilities	(9,638)
Net assets	$ 108,315
Non-controlling interest %	10.00%	0.00%
Non-controlling interests	$ 10,832
Total expenses	1,246
Net comprehensive income (loss)	(1,246)
Non-controlling interest	$ (125)

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General and administrative expenses (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
General and administrative expenses
Execuive compensation	$ 5,821	$ 1,794
Consulting fees	6,517	1,154
Office and general	16,511	3,166
Professional fees	11,790	2,951
Salaries and wages	19,627	3,295
Insurance	5,356	396
Travel and accommodation	3,116	889
Rent	1,014	256
Total	$ 69,752	$ 13,901

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Share-based compensation (Details) $ in Thousands	1 Months Ended		12 Months Ended
	May 31, 2019 EquityInstruments	May 31, 2018 EquityInstruments	May 31, 2019 CAD ($) EquityInstruments	May 31, 2018 CAD ($)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Amounts charged to share-based payment reserve in respect of share-based compensation			$ 24,078	$ 15,780
Share-based compensation accrued			187	(44)
Share-based compensation issued on behalf of a related party				(32)
Shares for services compensation				187
Deferred share units expensed in the period			588	1,983
Restricted share units expensed in the period			1,227
Total			$ 26,080	$ 17,874
Deferred share units
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of shares issued | EquityInstruments			96,833
Number of shares forfeited | EquityInstruments		312,000
Number of shares outstanding | EquityInstruments	136,958		136,958
Restricted share units
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of shares issued | EquityInstruments			197,600
Number of shares outstanding | EquityInstruments	197,600		197,600
Number of vested shares, outstanding | EquityInstruments	114,550

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Non-operating income (loss) (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Non-operating income (loss)
Consulting revenue		$ 1,244
Foreign exchange gain	$ 915	124
Loss on marketable securities	(178)	(2,155)
Gain (loss) on sale of capital assets	55	(191)
Gain on dilution of ownership in equity investee	2,210	7,535
Loss from equity investees	(1,123)	(9,295)
Gain on sale of equity investee	57,351	26,347
Deferred gain on sale of intellectual property	340	1,304
Interest income	14,350	6,362
Interest expense	(7,775)	(1,350)
Unrealized (loss) gain on convertible notes	(3,399)	4,135
Gain on long-term investments	19,651	26,675
Unrealized gain on convertible debentures	48,439
Unrealized loss on financial liabilities	(1,326)	(12,451)
Total	$ 129,510	$ 48,284

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Gain on long-term investments (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Gain on long-term investments
Proceeds	$ 216,195
Opening Fair Value / cost	185,804
Gain (loss) on disposal	30,391
Change in fair value	(10,740)
Total	19,651	$ 26,675
Level 1
Gain on long-term investments
Change in fair value	(12,211)
Level 3
Gain on long-term investments
Change in fair value	1,471
Shares | CannaRoyalty Corp. | Level 1
Gain on long-term investments
Proceeds	4,111
Opening Fair Value / cost	3,765
Gain (loss) on disposal	346
Total	346
Shares | MaasRoots, Inc. | Level 1
Gain on long-term investments
Proceeds	1
Opening Fair Value / cost	164
Gain (loss) on disposal	(163)
Total	(163)
Shares | North Bud Farms Inc. | Level 1
Gain on long-term investments
Proceeds	373
Opening Fair Value / cost	253
Gain (loss) on disposal	120
Total	120
Shares | Hiku Brands Company Ltd. | Level 1
Gain on long-term investments
Proceeds	30,542
Opening Fair Value / cost	13,558
Gain (loss) on disposal	16,984
Total	16,984
Shares | Scythian Biosciences Corp. | Level 1
Gain on long-term investments
Proceeds	6,609
Opening Fair Value / cost	8,901
Gain (loss) on disposal	(2,292)
Total	(2,292)
Shares | Copperstate Farms, LLC | Level 3
Gain on long-term investments
Proceeds	5,300
Opening Fair Value / cost	5,300
Shares | Copperstate Farms Investors, LLC | Level 3
Gain on long-term investments
Proceeds	14,700
Opening Fair Value / cost	14,700
Warrants | Hiku Brands Company Ltd. | Level 2
Gain on long-term investments
Proceeds	17,611
Opening Fair Value / cost	18,693
Gain (loss) on disposal	(1,082)
Total	(1,082)
Warrants | Scythian Biosciences Corp. | Level 2
Gain on long-term investments
Opening Fair Value / cost	661
Gain (loss) on disposal	(661)
Total	(661)
US legalization options | Level 3
Gain on long-term investments
Proceeds	136,448
Opening Fair Value / cost	116,809
Gain (loss) on disposal	19,639
Total	19,639
Green Acre Capital Fund II
Gain on long-term investments
Gain (loss) on disposal	2,500
Green Acre Capital Fund II | Level 3
Gain on long-term investments
Proceeds	500
Opening Fair Value / cost	3,000
Gain (loss) on disposal	(2,500)
Total	(2,500)
Long-term investments | Level 3
Gain on long-term investments
Change in fair value	(10,740)
Total	$ (10,740)

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Earnings (loss) per share - Basic earnings (loss) per share (Details) - CAD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Basic earnings (loss) per share:
Net income (loss) for the year	$ (16,499)	$ 29,448
Average number of common shares outstanding during the year	242,763,558	161,026,463
Earnings (loss) per share - basic	$ (0.07)	$ 0.18

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Earnings (loss) per share - Diluted earnings per share (Details) - CAD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Diluted earnings per share:
Net income (loss) for the year	$ (16,499)	$ 29,448
Average number of common shares outstanding during the year	242,763,558	161,026,463
"In the money" warrants outstanding during the year		1,293,890
"In the money" options outstanding during the year		3,593,647
Total	242,763,558	165,914,000
Earnings (loss) per share - diluted	$ (0.07)	$ 0.18

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Change in non-cash working capital (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018
Change in non-cash working capital
Decrease (increase) in accounts receivable	$ 12,458	$ (1,797)
Decrease (increase) in other current assets	5,715	(7,628)
Decrease (increase) in inventory, net of fair value adjustment	(22,151)	(7,045)
Decrease (increase) in biological assets, net of fair value adjustment	(17,322)	(367)
Increase (decrease) in accounts payable and accrued liabilities	(10,998)	3,764
Increase (decrease) in income taxes payable	(882)	2,662
Increase (decrease) in deferred revenue	11,689
Total	$ (21,491)	$ (10,411)

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Financial risk management and financial instruments (Details) - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Disclosure of detailed information about financial instruments [line items]
Long-term debt subject to fixed interest rates	$ 67,343	$ 30,548
Fixed interest rates
Disclosure of detailed information about financial instruments [line items]
Long-term debt subject to fixed interest rates	28,982
Fair value of the Company's long-term debt in repayment	$ 28,377

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Financial risk management and financial instruments - Fair Value hierarchy (Details) - Financial assets at FVTPL - CAD ($) $ in Thousands	May 31, 2019	May 31, 2018
Financial risk management and financial instruments
Financial assets	$ 668,148	$ 188,898
Level 1
Financial risk management and financial instruments
Financial assets	612,799	138,399
Level 2
Financial risk management and financial instruments
Financial assets		2,567
Level 3
Financial risk management and financial instruments
Financial assets	55,349	47,932
Cash and cash equivalents
Financial risk management and financial instruments
Financial assets	550,797	59,737
Cash and cash equivalents | Level 1
Financial risk management and financial instruments
Financial assets	550,797	59,737
Marketable securities
Financial risk management and financial instruments
Financial assets	20,199	45,062
Marketable securities | Level 1
Financial risk management and financial instruments
Financial assets	20,199	45,062
Convertible notes receivable
Financial risk management and financial instruments
Financial assets	32,230	18,071
Convertible notes receivable | Level 2
Financial risk management and financial instruments
Financial assets	0
Convertible notes receivable | Level 3
Financial risk management and financial instruments
Financial assets	32,230	18,071
Long-term investments
Financial risk management and financial instruments
Financial assets	64,922	66,028
Long-term investments | Level 1
Financial risk management and financial instruments
Financial assets	41,803	33,600
Long-term investments | Level 2
Financial risk management and financial instruments
Financial assets		2,567
Long-term investments | Level 3
Financial risk management and financial instruments
Financial assets	$ 23,119	$ 29,861

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Financial risk management and financial instruments - Statement of changes in the level 3 items (Details) $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($)
Reconciliation of changes in level 3
Financial assets at the beginning of period	$ 47,932
Acquisitions	89,049
Disposals	(79,704)
Unrealized gain on fair value	(1,928)
Financial assets at the End of period	55,349
Unlisted equity securities
Reconciliation of changes in level 3
Financial assets at the beginning of period	29,861
Acquisitions	69,549
Disposals	(77,762)
Unrealized gain on fair value	1,471
Financial assets at the End of period	23,119
Trading derivatives
Reconciliation of changes in level 3
Financial assets at the beginning of period	18,071
Acquisitions	19,500
Disposals	(1,942)
Unrealized gain on fair value	(3,399)
Financial assets at the End of period	$ 32,230

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Financial risk management and financial instruments - Credit risk (Details) - Trade receivables - Credit risk $ in Thousands	May 31, 2019 CAD ($)
Financial risk management and financial instruments
Financial assets	$ 25,488
0-30 days
Financial risk management and financial instruments
Financial assets	$ 20,777
% outstanding	82.00%
31-60 days
Financial risk management and financial instruments
Financial assets	$ 3,333
% outstanding	13.00%
61-90 days
Financial risk management and financial instruments
Financial assets	$ 237
% outstanding	1.00%
90+ days
Financial risk management and financial instruments
Financial assets	$ 1,141
% outstanding	4.00%

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Financial risk management and financial instruments - Currency risk (Details) - Currency rate risk $ in Thousands	May 31, 2019 CAD ($)
Financial risk management and financial instruments
Percentage change in foreign exchange rate which will result in unrealized gain or loss	1.00%
Unrealized gain or loss by 1% change in the foreign exchange rate	$ 4,000

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Commitments and contingencies - Minimum payments payable over the next five years (Details) $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($)
Commitments and contingencies
Purchase orders outstanding to capital asset expansion	$ 49,364
Minimum lease payments payable	55,474
2020
Commitments and contingencies
Minimum lease payments payable	50,689
2021
Commitments and contingencies
Minimum lease payments payable	942
2022
Commitments and contingencies
Minimum lease payments payable	752
2023
Commitments and contingencies
Minimum lease payments payable	711
2024
Commitments and contingencies
Minimum lease payments payable	656
Thereafter
Commitments and contingencies
Minimum lease payments payable	$ 1,724

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Segment reporting (Details) $ in Thousands	12 Months Ended
	May 31, 2019 CAD ($) segment	May 31, 2018 CAD ($)
Segment information
Number of operating segments | segment	3
Revenue	$ 237,110	$ 36,917
Income (loss) before income taxes	(15,645)	35,856
Impairment	58,039
Cannabis operations
Segment information
Revenue	78,853	36,917
Income (loss) before income taxes	726	39,128
Impairment	58,039
Distribution operations
Segment information
Revenue	157,931	0
Income (loss) before income taxes	2,914	(119)
Businesses under development
Segment information
Revenue	326	0
Income (loss) before income taxes	$ (19,285)	$ (3,153)

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Segment reporting - Geographical information (Details) - CAD ($) $ in Thousands	12 Months Ended
	May 31, 2019	May 31, 2018	May 31, 2017
Geographic information
Revenue	$ 237,110	$ 36,917
Capital assets	503,898	303,151	$ 72,455
North America
Geographic information
Revenue	78,853	36,618
Capital assets	471,391	296,438
Europe
Geographic information
Revenue	154,163	299
Capital assets	25,817	$ 6,713
Latin America
Geographic information
Revenue	4,094
Capital assets	3,758
Africa
Geographic information
Capital assets	$ 2,932