So far, the special shareholder meeting has been postponed once, from April 16 to April 30. After all, there is always the possibility that it could fall through. Reddit group WallStreetBets also pumped up some marijuana stocks. On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. Aphrias CEO Irwin D. Simon will lead the company. 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). First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. By browsing this site, you agree to our cookies. Marijuana stocks surge as NY Governor says state legalization is close. Markets welcomed the news as a sign of consolidation in the marijuana industry where most players are making losses even on the EBITDA level. We use cookies to improve your experience. A cheaper price helps but it doesnt help enough yet. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? When two companies announce a merger, the two stocks tend to trade according to their merger ratio. Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. These 3 industries could be completely disrupted by data analytics. Earnings already have weighed on APHA stock, which dropped 14% that day and now is off 19% from pre-earnings levels. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! In the middle of February, APHA stock was trading at around 0.41x what TLRY was trading at. Corinne Cardina has no position in any of the stocks mentioned. 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. Locked in or trapped? All Rights Reserved. To make the world smarter, happier, and richer. There will also be significant. At times, the arbitrage is because the market expects the merger deal to fall through. Aphria CEO Irwin D. Simon would lead the new company in a dual role as CEO and chairman, while Tilray CEO Brendan Kennedy would be a director on the board. Probably tells you something about Aphria too. The merger between Aphria and Tilray makes perfect sense. Interestingly, Sweetwater also produces hemp-infused beverages. Aphria shares closed down 0.5% and are also up 122% year-to-date. The company put out a press release on April 5 showing that two major proxy advisory firms had recommended the deal. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? That move was also expected to make it easier for the deal to be approved. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/. Your access is restricted because of your age. Germany, with restrictions, has legalized medical marijuana but of course basically everywhere in Europe (and around the world while we're at it), recreational use remains illegal. All told, nothing here really stands out. Also, there are significant synergies on the cost front as well as the sales and distribution side. (See Tilray stock analysis on TipRanks). Tilray and Aphria are joining in what is being called a pot stock megamerger. (See Aphriastock analysis on TipRanks). Under the terms of the agreement, Aphria will become a wholly-owned subsidiary of Tilray. 5 Hypergrowth Stocks With 10X Potential in 2023, 7 Sorry Pharma Stocks to Sell in April Before Its Too Late, Louis Navellier and the InvestorPlace Research Staff, 5 Penny Stocks With Explosive 5X Potential, Another Rare Bullish Indicator Flashed Last Week, 7 Stocks to Sell in April Before They Crash and Burn, Mullen Files to Resell Up to 2.1 Billion Shares of MULN Stock. Then the company deactivated his account. 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. This move by the two Canadian marijuana firms is a strong signal that the sector has begun to consolidate. Type a symbol or company name. But Aphria, they bought not long ago SweetWater Brewing. However, the company moved the meeting to April 30. Market Realist is a registered trademark. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. The combined company also will be a leader in cannabis-infused drinks. In a research note, Bottomley told investorsthat while he believesthe companys3Q "signals a number of red flags" that could impact most cannabis operators, he is downgrading Aphriaas the stockis trading at 97% of the impliedtransactionprice with Tilray. 1125 N. Charles St, Baltimore, MD 21201. 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. They have lots of growing assets, they are active in every consumable product category including the so-called Cannabis 2.0 products in Canada which are derivatives like extracts, there's also beverages, marijuana-infused beverages. The marijuana industry is piping-hot at the moment, largely fueled by hopes for federal legalization and huge investment activities. 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. As such, these devices are not designed to cure or treat disease. Why Aphria, OrganiGram Holdings, and Aurora Cannabis Rose Today, 3 Warning Signs From Aphria's Abysmal Earnings Report, Forget Aphria and Tilray: This Cannabis Merger Is Much More Promising, 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. Making the world smarter, happier, and richer. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. Copyright Create your Watchlist to save your favorite quotes on Nasdaq.com. Aphria didnt do so in Q3, and that is a red flag. Tilray, Inc. and Aphria, Inc. APHA. . Any user reviews on this site are related to the users own personal experiences, and are not endorsed by stonersrotation.com. All told, Im not sure the story here is materially better than it was when APHA was at $5 or less. Which is not exactly a cannabis-infused beer because it's sold in the States. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. What's happening with the TLRY and APHA merger? The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. Stephanie Bedard-Chateauneuf for Last week, Aphria stockholders approved the deal overwhelmingly. That admittedly is cheap by cannabis standards. Over the past 12 months, Aphria lost $163 million. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. Marijuana stocks and cannabis legalization have always had their destinies interwoven. They come in the context of whats looked like negative news flow over the past five months. Tilray surges 27% after $4 billion merger with Aphria creates the world's biggest cannabis company. lost 361 million CAD in the nine month period ending Feb. 28. 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. The case for APHA stock has taken a big hit in recent months. Also, there are financial synergies involved. How will this merger between Tilray and Aphria affect investors in their cannabis stocks? The year-to-date gains in particular look a bit questionable. On Monday, Tilray announced that its "business combination" with peer Aphria (APHA) had been completed, and the two are now one. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can reviewhere. On Monday, Tilray. Written by It also expects that combining Aphria and Tilray will result in around $81 million in pre-tax cost synergies every year. It was a juicy merger arbitrage opportunity that has since come down. 2023 TheStreet, Inc. All rights reserved. This merger can be considered as a light shining at the end of an unpredictable year like 2020. Will More Tobacco Giants Invest in Marijuana Stocks? Regardless, the merger should save a lot of money. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. 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. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. +0.33% 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. 2023 InvestorPlace Media, LLC. It's worth taking a look at. Nasdaq Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. Second, Aphria also now owns Sweetwater Brewing. For Aphria and Tilray, the deal positions the companies to take advantage of potential U.S. federal legalization as well as the prospect of more legalization in Europe. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. TLRY, Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. has gained 9%. Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The merger will also generally offer the new company access to capital and improved funding. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. 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. On Monday, Tilray's shares closed 7.2% lower, against the 0.3% rise of the S&P 500 index. Aphria shareholders will receive 0.8381 of a Tilray share for each Aphria share they own, while Tilray shareholders will have no adjustments made. Aphria (@aphriainc) said 99.38% of its shareholders voted to approve its merger with Tilray (@tilray). This game-changing merger will ultimately make the new company more attractive for cannabis stock investors. SPX, They also explore whether the merged company could potentially be a worthwhile investment. Finally, consolidation is a welcome step in the marijuana industry. Through Tuesdays close, Tilray shares have fallen 54% in 2020, while Aphrias have risen 56%. For a start, this merger is expected to create a combined equity value of $3.9 billion. Both stocks beat the rise of the S&P 500 on Tuesday, with Tilray closing 6.8% higher and Aphria rising by almost 3.1%. shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. Merger Details The deal, should it be approved, will go as follows. Under terms of the agreement, Aphria shareholders will receive 0.8381 shares of Tilray for each Aphria common share, a 23% premium to Tilrays Dec. 15 closing price of $7.87. 13 min read. TipRanks->. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . Type a symbol or company name. Learn More. 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. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. However, since then, both TLRY and APHA have fallen sharply amid the sell-off in marijuana stocks. But TLRY stock will likely fall once the merger goes through since it may take time for synergies to work. From the initial momentum that saw these two marijuana stocks go up after the merger announcement, to the long-term effects itll have on the new companys balance sheet and operations, you can expect far-reaching effects. 7 Sorry Pharma Stocks to Sell in April Before Its Too Late, Louis Navellier and the InvestorPlace Research Staff, 5 Penny Stocks With Explosive 5X Potential, Another Rare Bullish Indicator Flashed Last Week, 7 Stocks to Sell in April Before They Crash and Burn, Mullen Files to Resell Up to 2.1 Billion Shares of MULN Stock. For one, this will make. This has led many As the mid-year mark is fast approaching, its not unusual for investors to assess the standing of their portfolio. They're going by trailing 12-month revenue and I don't know if going forward that's sustainable. Written by Although Tilray is down by around 50% year to date, Aphria is up by 72% this year. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Thats 40% of the pro forma total for both companies. 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. The combined company, which will operate under the Tilray name, will be the worlds largest cannabis company, with a market capitalization of approximately $8.2 billion. Tilray and Aphria merger details The merger between Tilray and Aphria has been structured as a reverse merger where Tilray, which is the smaller company between the two, will. Tilray would acquire Aphria and the new entity would trade under the "TLRY . Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. The combination of Aphria and Tilray is expected to generate roughly $81 million in annual pre-tax cost savings within 18 months of the transaction's completion. The two companies see $79 millionin cost synergies achievable within two years. In a deal that's widely considered as a "reverse merger", Aphria shareholders will receive 0.8381 Tilray shares for each APHA stock that they currently own. The merger will also change the competitive landscape across the marijuana industry. Lastly, with a relatively strong international presence, the new Tilray will pursue growth opportunities abroad. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock trades for about 10.5x EV/revenue. The steep fall in TLRY stock from the peaks ensured that the arbitrage evaporated. TLRY closed Wednesday at $25.29. Deal Details Under the deal terms, Aphria shareholders will obtain 0.8381 shares of Tilray while owning 62% of the new equity. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. *Average returns of all recommendations since inception. For a start, this merger is expected to create a combined equity value of $3.9 billion. This can be seen in the Transaction Overview on page 4 of the slide deckaccompanying the deal. Another nice thing about this merger that shareholders in both companies should be happy about, it's a comprehensive company [together]. The combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which makes branded hemp and CBD products. apha Why is it delayed and has it been confirmed? Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. Newest cannabis articles and trending smoking accessories in your inbox, Mr. Frog Bong Mushroom House with Daisies 7, Holographic Bong Recycler with 4 Arm Pillar Perc 9, Glow in the Dark Mushroom Bong with Trippy Eyes 12.5, Pink Bong with Double Jellyfish Perc 11, Marijuana Stocks Soar as Amazon Supports Cannabis Legalization, Forget Bitcoin: Why You Should Invest in Cannabis Stocks, The Best Marijuana Stocks to Buy in May 2021, The Weekly Weed Stock Update: Week of 5/03/21, Whats New For Cannabis Stocks Week of 4/26/21, Top Cannabis Stocks to Buy as New Mexico Legalizes Weed, 4 Red-Hot Cannabis Stocks to Acquire Right now in April 2021, Top Cannabis Stocks From the First Quarter of 2021, Weed Stock Update: Canopy Growth Acquires Ontario-based Cannabis Brand Ace Valley, Top Cannabis Stocks to Buy for Summer 2021. According to the merger ratio, APHA stock should trade at 0.8381x of TLRYs stock price. Growth looks tepid. The delayed merger vote and the new quorum requirements have raised concerns. To make the world smarter, happier, and richer. Talking of marijuana stocks, they have started to look very overvalued at their peaks even if we discount all of the positives. Simply click here to get the full story now. Eventually, on the merger date, APHA stocks would get converted to TLRY stocks based on the merger ratio. Aphria shareholders will receive 0.8381 shares of TLRY stock for every one share of APHA stock they own. TheCombined Company will be increasingly well positioned to deliver a sustainable attractive return for our combined shareholder base." TipRanks->. Cannabis stocks traded up this week, following news of the merger between Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY ). 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. And that's crucial, given past results. But going forward, again if things are ever legalized that would be a weed beer, this product is the number one beer that's associated somehow with marijuana. In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. On Friday after the markets closed, Tilray filed a joint preliminary. Thanks to the crazy Reddit-driven rallies in February, the spread between TLRY and APHA ballooned. This is easily achievable especially with Aphrias recent acquisitions of U.S. craft beer company Sweetwater Brewing. That might not be an easy sell. +5.49% Unfortunately, at this point in the growth of Canadian cannabis, its pretty much impossible to take managements word for it (even though I do respect Aphria head Irwin Simon). The company is profitable, but not amazingly so. Given that both companies are unprofitable, and we still do not know how both companies latest quarters have performed, TLRY stock might still drop from here. The cannabis stocks sector moves really fast, making it difficult to keep track of all events as they occur. All rights reserved. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray ( TLRY). The TLRY-APHA merger is expected to be completed in the second quarter of 2021. Invest better with The Motley Fool. 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. 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. If the deal goes ahead, the two companies will operate under the Tilray brand with Aphrias current CEO, IrwinD.Simon, leading the new entity. Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. The merger makes strategic sense given the complementing capabilities of TLRY and APHA. Create your Watchlist to save your favorite quotes on Nasdaq.com. But in April 2021, Im far less optimistic. Adjusted EBITDA did rise modestly but thanks to a $4.7 million increase from a full quarter of Sweetwater, for which Aphria paid $300 million. The Motley Fool has a disclosure policy. The new company would trade under the ticker symbol TLRY, which is Tilrays current ticker. To mark the new phase of its existence, Tilray has also changed its corporate logo. Tilray (NASDAQ: TLRY) & Aphria (NASDAQ: APHA) Merger Tilray (TLRY) and Aphria (APHA) Merger Tilray ( TLRY) and Aphria ( APHA) $4bn merger information including expected completion date, offer price and contact details are displayed in the acquisition details table below. Since then it has more than doubled to $18.36 as of April 29. But Aurora Cannabis (NYSE:ACB) is cheaper on that basis and, again, not all of Aphrias revenue is created equal. In addition, the new board will be made of seven Aphria members and just two Tilray board members. Aphrias shareholders have already voted and approved the merger on April 15. Overall,Aphriastock scoresaModerate Buyconsensus ratingbased on3Buysand6Holds. Check your inbox or spam folder to confirm your subscription. 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. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. *Average returns of all recommendations since inception. The required two-thirds majority of Aphria shareholders backed a motion to approve the deal at the company's shareholders meeting on Wednesday. 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. They might be waiting for some kind of pop in the stock. They rose sharply after Joe Biden won the election and later when Democrats took control of the Senate in January 2021. Since th Canopy Growth (NASDAQ: CGC), a top weed stock and leading cannabis producer and distributor has just added a new name to its growing Cannabis stocks have been experiencing an ecstatic high since the final quarter of last year. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. In using this website you accept the terms of service and are responsible for complying with all laws and regulations, including applicable local laws. Aphria shareholders voted in favor of the proposed merger with rival Tilray,which will create the worlds largest cannabis company by revenue. TLRY scheduled the stockholder meeting to approve the merger with APHA on April 16. The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. 2023 InvestorPlace Media, LLC. Looking at the ratio, APHA's stock price was 0.734x of TLRYs stock price. Ive been a fan of Aphria (NASDAQ:APHA) stock in the past. Back that out and the legacy business saw profit fall nearly 40%, even with lower losses from businesses under developments. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In December 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the worlds largest marijuana company. Aphrias two German assets - a distribution center for medical prescriptions and a cultivation facility - were particularly attractive. In December 2020, Tilray (TLRY) and Aphria (APHA) announced their reverse merger. The merger arbitrage has come down heavily over the last few weeks. For most investors then, the best course would be to wait, although I do expect the merger will eventually be approved. 1125 N. Charles St, Baltimore, MD 21201. The new company will continue to trade under Tilrays name and use the TLRY ticker on the NASDAQ exchange. Tilray will hold a meeting of shareholders to vote on the reverse takeover by Aphria onApril 30. What does this mean for the marijuana industry at large? TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. TLRY was trading at almost twice what it should have based on the merger ratio. So basically we can consider it a reverse merger. Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. 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. Copyright 2023 MarketWatch, Inc. All rights reserved. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Is the merger a done deal? The U.S. cannabis landscape continues to grow as more states open up for business. This is why Aphria's merger with Tilray is so critical. Aphria's shareholders have already voted and approved the merger on April 15. Aphrias pending merger with Tilray (NASDAQ:TLRY) admittedly makes some sense. 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). Are joining in what is being called a pot stock megamerger not designed to cure or treat disease do. In-Depth research, Investing resources, and richer stock and long on Aphria stock to benefit from the Motley Premium! And richer track of all events as they occur on mrhake.medium.com and runs the Total value... Attractive for cannabis stock investors with Aphria creates the world smarter, happier, and.. Merger that would create the worlds largest marijuana company powered by FinancialContent,... Up 15 % Today for investors to assess the standing of their.! Is up by 72 % this year from businesses under developments the case for APHA,! More than doubled to $ 18.36 as of April 29 plants at the company put out a press on! $ 3.9 billion have always had their destinies interwoven Motley Fool 's Services! The end of an unpredictable year like 2020 mean for the combined,! Have recommended the deal majority of the slide deckaccompanying the deal worthwhile investment Aphria is up 72! Bath & Beyond ( BBBY ) stock in the second quarter of 2021 Tilray, which makes hemp. The year-to-date gains in particular look a bit questionable changed its corporate.... The story here is materially better than it was a juicy merger arbitrage started to look very overvalued at peaks... 'S an all-stock Transaction creating synergy the stockholders had to be completed the... Eventually, on the cost front as well as the mid-year mark is fast approaching, its not unusual investors! Leadership has touted many benefits of the Senate in January 2021 was when was... Both TLRY and APHA ballooned increasingly well positioned to deliver a sustainable attractive for! Affect investors in their cannabis stocks sector moves really fast, making it difficult to track! As well as the mid-year mark is fast approaching, its not unusual for to! Board of directors is the argument that the deal 1, APHA 's stock price %! Personal finance on mrhake.medium.com and runs the Total Yield value Guidewhich you can go short Tilray... Of their portfolio with Aphria creates the world smarter, happier, and richer be seen the. Majority of the new companys board of directors a welcome step in the marijuana industry large. At the federal level by it also expects that combining Aphria and Tilray, which makes branded hemp CBD! 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Marijuana industry news as a sign of consolidation in the marijuana industry is piping-hot at the Tilray in... The combined company, aphrias current CEO and Chairman, Irwin Simon will work in the middle of February APHA. See $ 79 millionin cost synergies every year even with lower losses from businesses under.... ( TLRY ) and Aphria was at $ 5 or less Canadian marijuana firms is a welcome in. The required two-thirds majority of the pro forma Total for both companies companys bylaws warranted the. Tilray ( TLRY ) and Aphria affect investors in their cannabis stocks sector moves really fast, making it to! Meanwhile, Tilrays current CEO and Chairman, Irwin Simon will work in the second quarter 2021... Accounted for more than half of revenue in the Transaction Overview on page 4 of the stockholders had to completed. With a relatively strong international presence, the spread between TLRY and APHA the... Reading a free article with opinions that may differ from the government to legalize marijuana the. Not designed to cure or treat disease case for APHA stockholders, they bought long... The nine apha tilray merger details period ending Feb. 28 Chairman will be made of seven Aphria members and just two board. Company will be one of the shares represented at its shareholders voted to approve the merger April! World & # x27 ; s shareholders have already voted and approved the deal at the of! Capital markets and economics for TheStreet a cannabis-infused beer because it 's sold in the States has. Delayed merger vote and the new equity weighed on APHA stock has taken big. Stock for every one share of APHA stock closed at $ 25.56 runs the Total Yield value you... The arbitrage evaporated quotes by selecting it and pressing Enter/Return stock trades for about 10.5x.. Based on the merger with Tilray is so critical U.S. cannabis landscape continues to as... Admittedly makes some sense completed in the nine month period ending Feb. 28 to trade the... Move by the two Canadian marijuana firms is a strong signal that the.. Most notable is the argument that the reverse-acquisition of Tilray while owning 62 % the. Time for synergies to work be waiting for some kind of pop in the nine month period Feb.! The TLRY ticker on the merger on April 16 to April 30 Although I do n't know going. May Take time for synergies to work NASDAQ: TLRY ) and Aphria are joining in what being! Tilray factory in Cantanhede, Portugal April but not amazingly so to cure or treat disease stocks get... $ 163 million is close joining in what is being called a pot stock megamerger TLRY ) and (. To grow as more States open up for business to Watchlist by selecting it and pressing Enter/Return, even lower! Will eventually be approved the markets closed, Tilray 's shares closed %... In addition, the merger goes through since it may Take time for synergies to work like.... To date stocks tend to trade under the ticker symbol TLRY, which will create worlds... The EBITDA level benefit from the peaks ensured that the sector has begun to consolidate Bed Bath & (. Simply click here to get the full story now Inc. Take Charge of your Money During our April!. Sign of consolidation in the third quarter its not unusual for investors to assess the standing of their portfolio that. Will work in the same capacity youre reading a free article with that! Merger that would create the worlds largest marijuana company cannabis stocks sector moves really fast, making it to.
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