Aphria Inc., the Canadian cannabis company that has reportedly been in talks to receive an investment from tobacco giant Altria Group (MO), reported a first quarter profit of C$21.2 million, up from the C$15 million it reported in the same quarter last year. In a news release, the company said its profit came to nine cents per diluted share compared with a profit of $0.10 per diluted share in the same quarter last year, when it had fewer shares outstanding. Aphria attributed its growth to investments in Liberty Health Sciences and Hiku Brands Co. Ltd., and an increase in fair value of biological assets caused by a production increase. Although it has not confirmed or denied the rumors of Altria's investment, Aphria shares (traded on the Canadian TSE stock exchange) have been trading higher since the report and its profit announcement. 

As the legalization of recreational pot draws nearer in Canada, tobacco giant Altria (MO) is reportedly in talks to take a piece of Leamington, Ontario-based Aphria (APHQF). Reuters says that Altria may initially take a minority stake in the company with the option to become a majority owner later on.In response to the report, Aphria released the following statement: "Aphria Inc. today responded to a request from the Investment Industry Regulatory Organization of Canada regarding media reports suggesting the Company is engaged in discussions regarding a potential investment in Aphria.