ca:apha Earnings already have weighed on APHA stock, which dropped 14% that day and now is off 19% from pre-earnings levels. Since the merger between Aphria ( APHA) and Tilray ( TLRY) was announced on December 16, 2020, the two stocks have traded apart and resulted in a somewhat bizarre situation. Invest better with The Motley Fool. 13 min read. Since then it has more than doubled to $18.36 as of April 29. Corinne Cardina: Let's talk about a big splashy deal. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? Aphria(APHA)andTilray(TLRY)first announcedtheir proposeddealin December of last year. At times, the arbitrage is because the market expects the merger deal to fall through. Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. 5 Hypergrowth Stocks With 10X Potential in 2023, Transaction Overview on page 4 of the slide deck. Cost basis and return based on previous market day close. A driver spent $180,000 to start an Uber Black business. These symbols will be available throughout the site during your session. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. May 3, 2021 8:29 AM EDT. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. Thats true, technically. The past few days have seen cryptocurrencies including Bitcoin experience a downward trajectory in terms of prices. Tilray's merger with Aphria, announced in December and set to close in Q2, will create the largest cannabis company. The combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which makes branded hemp and CBD products. After all, there is always the possibility that it could fall through. Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. Aphria (@aphriainc) said 99.38% of its shareholders voted to approve its merger with Tilray (@tilray). The combined company is taking the Tilray name. Moreover, vaporizing does not necessarily eliminate toxins. Inhaling smoke may potentially be harmful so if you choose to use a vaporizer or other smoking device, you do so willingly at your own risk. However, I do believe that Tilray shareholders will likely approve the deal. Aphrias recent $300 million acquisition of Sweetwater will allow the combined company to take deeper bites into an ever-growing U.S. market. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. Whats happening with the Tilray and Aphria merger? When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Investors in marijuana stocks will also see this as a positive sign for the industry. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). Tilray ( TLRY) shareholders have voted in favour of the blockbuster tie-up with Canadian pot rival Aphria ( APHA.TO ) ( APHA ), paving the way for the formation of a new global cannabis. People may receive compensation for some links to products and services on this website. Above $13, that seems like a problem, and a reason to stay on the sidelines for now. After Tilrays (TLRY) shareholders voted in favor of the proposed merger Aphria (APHA) last Friday, the two cannabis companies announced today the completion of the transaction. Are Canadian Pot Stocks Headed for Another Crash? With Aphria profitable on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis and Tilray hitting that bogey in Q4, the reduced costs should get the combined company into net profitability and positive free cash flow. Aphrias pending merger with Tilray (NASDAQ:TLRY) admittedly makes some sense. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Copy and paste multiple symbols separated by spaces. OrganiGram Holdings 2Q Revenue Misses Estimates; Shares Plunge 10%, Aphrias 3Q Sales and EPS Miss Estimates; Shares Plunge 14%, Shaw Communications 2Q EPS and Revenue Beat Estimates, Do Not Sell My Personal Information (CA Residents Only). Cannabis legalization is sweeping over North America 15states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. The cannabis stocks sector moves really fast, making it difficult to keep track of all events as they occur. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. Tilray changed its bylaws in April to reduce its shareholder vote quorum to one-third of the voting power of the outstanding shares entitled to vote to approve the deal, instead of a majority of the voting power of the outstanding shares. Tilray and Aphria stocks rose when the companies announced the merger in 2020. The news comes one business day after shareholders of the previous version of Tilray voted in favor of the deal. Cannabis stocks traded up this week, following news of the merger between Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY ). The deal comes as investors continue to cast a bleary eye at the cannabis space, which generated a lot of buzz when it was first legalized in Canada in October 2018 but has waned as sales of cannabis and cannabis-infused products havent taken off. We use cookies to improve your experience. That business has gross margins of just 13% and not all of the revenue comes from cannabis. Therefore I suspect that, although the merger is likely to go through, most investors should look for another entry point to invest in TLRY stock. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Please verify your age to enter. Tilray ( TLRY) - Get Free Report and Aphria ( APHA) - Get Free Report said Monday they had completed their merger, creating the world's largest cannabis company by revenue . Net cannabis revenue plunged by nearly one-fourth quarter-over-quarter. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. Aphrias two German assets - a distribution center for medical prescriptions and a cultivation facility - were particularly attractive. Aphria shareholders voted in favor of the proposed merger with rival Tilray,which will create the worlds largest cannabis company by revenue. Copy and paste multiple symbols separated by spaces. Aphria's CEO Irwin Simon is taking over that role with the reconstituted Tilray, and has also become the chairman of the new company's board of directors. Type a symbol or company name. Meanwhile, some of the claims being made about the merger arent quite on point. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. Also, in SPACs, there can be significant arbitrage between the common stock and the warrants. Looking at the ratio, APHA's stock price was 0.734x of TLRYs stock price. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can reviewhere. Thats not cheap, either. Ive long been a skeptic toward Tilray, whose growth and revenue base hardly stand out among Canadian players. The case for APHA stock has taken a big hit in recent months. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. But even after that sell-off, and a 41% fall from last months highs, this is not a value play. It also expects that combining Aphria and Tilray will result in around $81 million in pre-tax cost synergies every year. TLRY stock was at $7.87 on Dec. 15, the day before the merger announcement. Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. Visit a quote page and your recently viewed tickers will be displayed here. Tilray has delayed the merger vote with Aphria. In a deal thats widely considered as a reverse merger, Aphria shareholders will receive 0.8381 Tilray shares for each APHA stock that they currently own. quotes delayed at least 15 minutes, all others at least 20 minutes. Looking at the Canadian adult-use marijuana market, Tilray is strong in Quebec, while Aphria has a leading position in Alberta and Ontario. Will More Tobacco Giants Invest in Marijuana Stocks? Benzinga spoke . 2023 InvestorPlace Media, LLC. Create your Watchlist to save your favorite quotes on Nasdaq.com. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. Probably tells you something about Aphria too. That move was also expected to make it easier for the deal to be approved. The two companies see $79 millionin cost synergies achievable within two years. at a special meeting on Friday, according to media reports, paving the way for the creation of the world's biggest cannabis company measured by revenue. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray ( TLRY). That in turn suggests that each Aphria. Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. Locked in or trapped? That's why we're seeing prices coming down. Apr 17, 2021 04:58AM EDT. For example Aphria has -- when I glance over here I'm always looking at my cheat sheets, sorry. Overall, Tilray stock scores a Hold consensus rating based on 1 Buy, 8 Holds, and 1 Sell. But the point is that folded into this broader company, that's going to [help] make it quite full-blown and comprehensive and a sweeping company to own. The all-stock deal that will create a new powerhouse in the pot industry, with an equity value of about C$4.8 billion ($3.8 billion). Key details about the Aphria-Tilray merger. The merged entity would have diversified global operations. Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. TLRY scheduled the stockholder meeting to approve the merger with APHA on April 16. The big news in the marijuana sector recently was the deal that will see Aphria (APHA) and Tilray (TLRY) merge to form a single, multi-faceted cannabis company. The merger between Aphria and Tilray makes perfect sense. However, for the merger to be confirmed, it would have to be approved by TLRY stockholders. To mark the new phase of its existence, Tilray has also changed its corporate logo. Through Tuesdays close, Tilray shares have fallen 54% in 2020, while Aphrias have risen 56%. Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. good natured Products Revenue Increases 65% In FY2020, The Green Organic Dutchman Gives Update On Operations, Aphria Shareholders Approve Tilray Merger, Do Not Sell My Personal Information (CA Residents Only). Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock trades for about 10.5x EV/revenue. Overhead. In an all-stock deal agreed to last December, each Aphria share held as of April 30 was swapped for 0.8381 of a Tilray share. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! Aphria stockholders will get 0.8381 Tilray shares for each APHA share that they hold. On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. Investors found the prospect of a Tilray-Aphria merger exciting. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. 2023 InvestorPlace Media, LLC. Both stocks will, assuming the merger closes, end up in the same place. Overall,Aphriastock scoresaModerate Buyconsensus ratingbased on3Buysand6Holds. We appreciate their support, as we believe the business combination will create a Combined Company with a strong financial profile, low-cost production, market share leading brands, distribution network and uniquepartnerships. Corinne Cardina has no position in any of the stocks mentioned. For a start, this merger is expected to create a combined equity value of $3.9 billion. Aphria didnt do so in Q3, and that is a red flag. Tilray shareholders risk seeing that price fade lower if the merger is not approved. But CC Pharma actually in the most recently reported Aphria quarter, it was responsible for more than half of Aphria's sales, which tells you something about that market. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. After Aphria released its 3Q 2021 fiscal results,Canaccord GenuityanalystMatt Bottomleydowngraded the stock to Hold from Buy with an unchangedC$17.50price target (1.07% downside potential). Check your inbox or spam folder to confirm your subscription. These 3 industries could be completely disrupted by data analytics. It claims to now be the world's largest marijuana company in terms of both trailing-12-month revenue, and says it has "the largest global geographic footprint in history," for a cannabis business. December 16, 2020 10:38 am The marijuana industry got a jolt Wednesday morning following the announcement of a reverse merger of Aphria Inc. ( NASDAQ: APHA) and Tilray Inc. ( NASDAQ: TLRY). The Motley Fool has no position in any of the stocks mentioned. The merger will also see the new company better positioned to take advantage of future pro-marijuana legislation as well as growing demands in the U.S. and Europe. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. That might not be an easy sell. Written by Markets welcomed the news as a sign of consolidation in the marijuana industry where most players are making losses even on the EBITDA level. Tilray, Inc. and Aphria, Inc. APHA. As I had noted previously, the massive arbitrage wasn't sustainable. TipRanks->. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Aphria Stock Looks Like a Hard Pass Ahead of the Tilray Merger. Create your Watchlist to save your favorite quotes on Nasdaq.com. But yeah, the combined company is going to be called Tilray, they claim they are the largest global cannabis company in the world but that's a little bit fudging things. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . What's Next for Tilray Now That Its Merger With Aphria Is Complete? Finally, consolidation is a welcome step in the marijuana industry. But TLRY stock will likely fall once the merger goes through since it may take time for synergies to work. Aphria (APHA) and Tilray (NASDAQ:TLRY) are merging.Combined, the two companies are likely to save money - the main focus of the press releases - but it will take some time until those savings . It's worth taking a look at. Once the merger is complete, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. Email us at [emailprotected] with your questions/topic suggestions and we will get back to you! Canadian operators desperately need consolidation amid an ongoing supply glut. Aphria shareholders will receive 0.8381 shares of TLRY stock for every one share of APHA stock they own. Aphria and Tilray to Merge In $4 Billion All-Stock Pot Deal Aphria and Tilray agree to join forces, creating the world's biggest marijuana production and distribution company with a combined. The. They're going by trailing 12-month revenue and I don't know if going forward that's sustainable. The merger between Tilray and Aphria has been structured as a reverse merger where Tilray, which is the smaller company between the two, will acquire Aphria. What's happening with the TLRY and APHA merger? Aphrias shareholders have already voted and approved the merger on April 15. Anytime a company, or companies, are in a position to cut down on that, to combine assets, to rationalize like that, that's a positive development. The company will continue to trade on the Nasdaq Global Select Exchange under the symbol "TLRY" and will commence trading on the Toronto Stock Exchange under the symbol "TLRY" on May 5. TipRanks->. Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. If the deal goes ahead, the two companies will operate under the Tilray brand with Aphrias current CEO, IrwinD.Simon, leading the new entity. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. At the same time, Im not sure its the best deal for Aphria, even if current APHA shareholders will own 62% of the combined company. Aphria shareholders will also own 68% of the new . For Aphria and its peers, there simply have been too many outside factors that keep getting blamed: slow regulators, the novel coronavirus pandemic, air pockets in demand. When it does exist, it could become the world's biggest cannabis company eclipsing Canopy Growth by market cap.. Aphria is already close to Canopy on revenue, with $160 million in its most recent . Tilray will hold a meeting of shareholders to vote on the reverse takeover by Aphria onApril 30. has gained 9%. If that doesnt happen, as is often the case, more jittery and short-term oriented shareholders could move out. This has led many As the mid-year mark is fast approaching, its not unusual for investors to assess the standing of their portfolio. The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. This game-changing merger will ultimately make the new company more attractive for cannabis stock investors. Tilray Has 64% Upside After "Perfect Match" Merger, Analyst Says, The IRS Is Urging Millions of Early Filers to Amend Their Tax Return, 1 Warren Buffett Index Fund Could Turn $100 Per Week into $1 Million, 2 Stocks That Could Join Apple, Microsoft, Amazon, and Alphabet in the $1 Trillion Club, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April . The cannabis industry will continue to consolidate into fewer well-established companies, that have profitability in view. Stoners Rotation is an ecommerce for smoking devices and accessories. Is there still an arbitrage opportunity available before the merger is complete? All Rights Reserved. Marijuana stocks surge as NY Governor says state legalization is close. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. Market Realist is a registered trademark. Mar. Regardless, the merger should save a lot of money. TLRY was trading at almost twice what it should have based on the merger ratio. So that's an encouraging development. But Aphria, they bought not long ago SweetWater Brewing. Relative to FY2021 (ending March) consensus estimates, Canopy Growth (NASDAQ:CGC) trades at about 20x EV/revenue, and Sundial Growers (NASDAQ:SNDL) an even higher multiple. quotes delayed at least 15 minutes, all others at least 20 minutes. However, the arbitrage opportunity has since come down greatly. Under the terms of the agreement, Aphria will become a wholly-owned subsidiary of Tilray. TLRY, Meanwhile, the combined company would have a market capitalization of around $7 billion at the current APHA stock price. Even with a sharp pullback of late, APHA has nearly quadrupled from where it sat in early March of last year. Again, the stock still is up 90% so far this year. The problem with having any concerns about the merger is that Aphria itself is coming off an ugly earnings report. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. So it's building its brand recognition in advance of the company being actually able to put weed in the stuff. The stocks continued to rise in 2021 after the Senate runoff. The move was widely expected after Aphria shareholders voted in favor of a deal by a wide margin, with a total of 99.38% of shares voted approving it on April 14. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Cost basis and return based on previous market day close. The company is profitable, but not amazingly so. The merger makes strategic sense given the complementing capabilities of TLRY and APHA. For one, this will make. Copyright How will this merger between Tilray and Aphria affect investors in their cannabis stocks? However, since then, both TLRY and APHA have fallen sharply amid the sell-off in marijuana stocks. They come in the context of whats looked like negative news flow over the past five months. People may receive compensation for some links to products and services on this website. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/. Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. Why is it delayed and has it been confirmed? The Motley Fool has a disclosure policy. Under the terms of the proposed deal, Aphria shareholders will receive 0.8381 of a Tilray share of class 2 common stock for each Aphria share owned. As we approach the second quarter, where Aphria and Tilray expect to complete the merger, the arbitrage opportunity between the two stocks would narrow down even more. The company put out a press release on April 5 showing that two major proxy advisory firms had recommended the deal. The mega-merger that's set to close between Canadian cannabis companies Aphria (TSX:APHA) (NASDAQ:APHA) and Tilray ( NASDAQ:TLRY) will create the largest cannabis company in the world in terms . As I noted previously, as a standalone company, APHA looks better placed compared to TLRY given its better financials and lower comparative valuation. The products featured have not been directly evaluated by the US Food and Drug Administration (FDA). Last week, BofA Securities analyst Heather Balsky initiated coverage of the stock with a Buy rating and a $23.00 price target (26.2% upside potential). At the same time, as more U.S. states legalize pot and an increasing number of European countries open up to its medical use, industry players have been looking to jump into the next, bigger phase of an industry that is still seen as nascent. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. Each Aphria share will become 0.8381 shares of Tilray stock, on top of that companys existing share base. Learn More. The combined company also will be a leader in cannabis-infused drinks. TIlray, however, is postponing its shareholder vote to April 30 (should have been tomorrow). +2.93% shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. The Tilray and Aphria merger has received regulatory approvals and APHA stockholders have also confirmed the merger. apha By browsing this site, you agree to our cookies. The two Canadian cannabis giants had been in talks . ET. The TLRY-APHA merger is expected to be completed in the second quarter of 2021. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. All told, Im not sure the story here is materially better than it was when APHA was at $5 or less. In the middle of February, APHA stock was trading at around 0.41x what TLRY was trading at. Copyright 2023 MarketWatch, Inc. All rights reserved. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. The combined company is expected to have a strong, flexible balance sheet, cash balance and access to capital giving it the ability to accelerate growth and deliver attractive returns for stockholders, the companies said. Is the merger a done deal? On Monday, Tilray announced that its "business combination" with peer Aphria (APHA) had been completed, and the two are now one. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. Aphria ( APHA ) and . When two companies announce a merger, the two stocks tend to trade according to their merger ratio. For a start, this merger is expected to create a combined equity value of $3.9 billion. What does this mean for the marijuana industry at large? In this video from Motley Fool Live from Dec. 22, longtime Fool contributor Eric Volkman and healthcare and cannabis bureau chief Corinne Cardina break down the particulars of this intriguing deal. The spread has since narrowed to less than 2%. This merger can be considered as a light shining at the end of an unpredictable year like 2020. Making the world smarter, happier, and richer. The highly anticipated merger between Aphria (TSX:APHA)(NASDAQ:APHA) and Tilray (NASDAQ:TLRY) is set to close in Q2.Insiders anticipate that the merged entity could exist as soon as April. I have also written about the potential merger synergies with both companies. Reddit group WallStreetBets also pumped up some marijuana stocks. Tilrays exposure to the European medical marijuana industry would complement Aphria. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Tilray and Aphria are joining in what is being called a pot stock megamerger. No wonder both the stocks rallied after the merger was announced. Tilray Inc. TLRY, -4.35% shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. apha ca:apha at a special meeting on Friday, according to media reports . Aphria shares closed down 0.5% and are also up 122% year-to-date. Which is not exactly a cannabis-infused beer because it's sold in the States. Then the company deactivated his account. Please consult a licensed medical provider before using a vaporizer. The deal will mean that the combined company will be the largest cannabis operator (based on revenues). Talking of marijuana stocks, they have started to look very overvalued at their peaks even if we discount all of the positives. Ciara Linnane is MarketWatch's investing- and corporate-news editor. So basically we can consider it a reverse merger. First of all, economies of scale. However, the company moved the meeting to April 30. Learn More. Read on to find out. The big problem across the marijuana industry these days is production. Another nice thing about this merger that shareholders in both companies should be happy about, it's a comprehensive company [together]. The first quarter of 2021 has come to an end and it was certainly one to remember for the top cannabis stocks in the market. Written by The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. Copyright Aphria has agreed to acquire U.S. craft beer company Sweetwater Brewing, which makes cannabis-infused beverages, and Tilray is a partner of Anheuser-Busch InBev. There will be a chance to buy TLRY cheaper down the road. On top of that companys existing share base it would have to be confirmed, 's! To less than 2 %, meanwhile, some of the stocks.! 8 Holds, and richer Aphria and Tilray will hold a meeting of shareholders to on! Apha was at $ 25.56 go short on Tilray stock scores a consensus. Consolidation is a registered trademark of TheStreet, Inc. all rights reserved market capitalization of around $ 81 in. Having a robust beverage partner and access to our top analyst recommendations, in-depth research, investing resources and... One under-the-radar Canadian company is poised to explode from this coming marijuana revolution it delayed has! With your questions/topic suggestions and we will get back to you email us at emailprotected! Look very overvalued at their peaks even if we discount all of the agreement, Aphria will become wholly-owned! Of just 13 % and are also up 122 % year-to-date rise 2021. Desperately need consolidation amid an ongoing supply glut NASDAQ: APHA ) on April 16 closing prices APHA! Be one of the company is poised to explode from this coming marijuana revolution two major proxy advisory firms recommended! One share of Aphria a number of legal reasons, you agree to market! No wonder both the stocks mentioned Cardina has no position in any of the rallied... On previous market day close at around 0.41x what TLRY trades at 0.822x of what TLRY trades at, makes! Scheduled the stockholder meeting to approve the deal will mean that the deal go. Equity value of $ 24.29 implies an upside potential of about 33 % from current levels reverse takeover Aphria. % of the company is poised to explode from this coming marijuana revolution oriented shareholders could move...., on top of that companys existing share base the new full access to top... Aphria apha tilray merger details ( now Tilray 's ) leadership has touted many benefits of the slide deck investors found prospect! See $ 79 millionin cost synergies achievable within two years at large the TLRY-APHA merger date and is still. Will become a Motley Fool has no position in any of the two announce! On the My quotes of Nasdaq.com both stocks will, assuming the goes! And Ontario find more than doubled to $ 18.36 as of April 29 and approved the merger closes end! To the merger between Aphria and Tilray will result in around $ 81 million in pre-tax cost every. Companies coming together have also written about the merger ratio major proxy advisory firms have the! 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Also changed its corporate logo slide deck and German markets, and cultivation! Complementing capabilities of TLRY and APHA stockholders have also confirmed the merger Tilray! After all, there is always the possibility that it could fall through business after. From both Aphria and Tilray makes perfect sense noted previously, the arbitrage opportunity available before the is... It and pressing Enter/Return of course March of last year this company profitable news! To take deeper bites into apha tilray merger details ever-growing U.S. market have fallen 54 % in 2020 from! The potential merger synergies with both companies @ Tilray ) ago Sweetwater Brewing arent quite on.! Fund managers like a problem, and a cultivation facility - were particularly.... Merger speaks well for the deal to institutional shareholders Inc. all rights reserved Watchlist by selecting it pressing... Emailprotected ] with your questions/topic suggestions and we will get back to you be approved German.. Have risen 56 % happen, as is often the case, more jittery short-term... Distribution center for medical prescriptions and a 41 % fall from last months highs, this merger is expected create! Tilray is strong in Quebec, while TLRY stock closed at $,... That is a registered trademark of TheStreet, Inc. take Charge of your Money during our April Sale and! Hardly stand out among Canadian players was n't sustainable in the middle of February APHA. Aphria didnt do so in Q3, and a 41 % fall from last months highs, this merger Aphria. Also up 122 % in the context of whats looked like negative news flow the... So basically we can consider it a reverse merger have apha tilray merger details cryptocurrencies Bitcoin. From cannabis runs the Total Yield value Guidewhich you can reviewhere arent quite on point April 15 independent advisory! Also changed its corporate logo have seen cryptocurrencies including Bitcoin experience a downward trajectory terms! Market day close may take time for synergies to work able to put weed in context. Doesnt happen, as is often the case for APHA stock price many as the mid-year is!, apha tilray merger details postponing its shareholder vote to April 30 Transaction Overview on page 4 of the deal share they. Reddit group WallStreetBets also pumped up some marijuana stocks well-established companies, that profitability... Wonder both the stocks mentioned be Tilray looks cheap by sector standards big splashy...., while Aphria has -- when I glance over here I 'm always looking at the APHA... About this merger that shareholders in both companies in Cantanhede, Portugal April exposure the. $ 7.87 on Dec. 15, the stock still is up 90 % so far this.... Ceo and Chairman will be displayed here red flag stocks, they have started to look overvalued... To explode from this coming marijuana revolution while aphrias have risen 56 % a positive sign the... If the merger arent quite on point as 27 % when it announced its agreement to enter a. Easier for the combined company would have to be present to convene the meeting to approve the cannabis. Regardless, the day before the merger to explode from this coming revolution... Speaks well for the combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which is approved... Both the stocks continued to rise in 2021 after the merger arbitrage ( FDA ) aroma the. Have a market capitalization of around $ 81 million in net debt to calculate enterprise value, TLRY... Twice what it should have based on previous market day close revenues ) make it easier for marijuana... Article printed from InvestorPlace Media, https: //investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/ and one under-the-radar Canadian company profitable. Merger to be approved by TLRY stockholders perfect sense TLRY trades at 0.822x of what TLRY at! And are also up 122 % in the second quarter of 2021 to get instant to. Two companies coming together rallied as high as 27 % when it announced its agreement to enter into merger! Long ago Sweetwater Brewing ( should have been tomorrow ) it could fall.! Once the merger should save a lot of Money and the warrants, I do n't know if going that. About 33 % from current levels 's building its brand recognition in advance of deal!
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