apha tilray merger details

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. The stocks continued to rise in 2021 after the Senate runoff. APHA . In late 2019, I called it my pick in the cannabis sector. 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. Finally, consolidation is a welcome step in the marijuana industry. I think that's a good move because I think Tilray has a slightly stronger brand name and recognition. 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. The Motley Fool has no position in any of the stocks mentioned. As I noted previously, as a standalone company, APHA looks better placed compared to TLRY given its better financials and lower comparative valuation. Please verify your age to enter. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. That admittedly is cheap by cannabis standards. It would also see the new company instantly offer real competition to established players like Canopy Growth and Aurora Cannabis both in North America and globally. In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. Your access is restricted because of your age. Im not sure its sales are as valuable as those elsewhere in the business. Aphria(APHA)andTilray(TLRY)first announcedtheir proposeddealin December of last year. Investors found the prospect of a Tilray-Aphria merger exciting. As such, these devices are not designed to cure or treat disease. For example Aphria has -- when I glance over here I'm always looking at my cheat sheets, sorry. Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. The Cannabis ETF Tilray and Aphria are joining in what is being called a pot stock megamerger. Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. Net cannabis revenue plunged by nearly one-fourth quarter-over-quarter. 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. The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. By browsing this site, you agree to our cookies. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray ( TLRY). Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. Copy and paste multiple symbols separated by spaces. have merged after months of negotiations, creating a company with a combined market cap of $3.3 billion. 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. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Interestingly, Sweetwater also produces hemp-infused beverages. Current share. Over the past 12 months, Aphria lost $163 million. Stephanie Bedard-Chateauneuf for As I had noted previously, the massive arbitrage wasn't sustainable. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Is the merger a done deal? What's happening with the TLRY and APHA merger? Please consult a licensed medical provider before using a vaporizer. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Aphria Stock Looks Like a Hard Pass Ahead of the Tilray Merger. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. Investors in marijuana stocks will also see this as a positive sign for the industry. As these markets begin to re-open, Tilray is poised to strike and transform the industry with our highly scalable operational footprint, a curated portfolio of diverse medical and adult-use cannabis brands and products, a multi-continent distribution network, and a robust capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders.". 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. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. Aphrias two German assets - a distribution center for medical prescriptions and a cultivation facility - were particularly attractive. Eric Volkman has no position in any of the stocks mentioned. Aphrias CEO Irwin D. Simon will lead the company. Key details about the Aphria-Tilray merger. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! Visit a quote page and your recently viewed tickers will be displayed here. Tilray surges 27% after $4 billion merger with Aphria creates the world's biggest cannabis company. In reality, this is Aphria taking over Tilray. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. has gained 47% and the S&P 500 A cheaper price helps but it doesnt help enough yet. There's a lot of benefits to combining. Type a symbol or company name. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. ET. After Tilray's ( TLRY) shareholders voted in favor of the proposed merger Aphria ( APHA) last Friday, the two cannabis companies announced today the completion of the transaction. Whats the TLRY-APHA merger date? Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Last week, Aphria stockholders approved the deal overwhelmingly. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Copyright 2023 Market Realist. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. 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. But Aphria, they bought not long ago SweetWater Brewing. Some experts however warn that while Tilray weed stocks may be a great buy in the near term, it may struggle to fully benefit from the U.S. marijuana market until pro-cannabis federal laws are established. Now that the deal is done, the hard part comes: Tilray 2.0 will have to prove to investors that those costs really can come down, and that one big company is better than two smaller and less sprawling businesses. 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. Simon said, "Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. Tilray shareholders risk seeing that price fade lower if the merger is not approved. The Motley Fool has a disclosure policy. 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). Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. +2.93% Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Aphria has a company called CC Pharma based in Germany, which is very active and quite strong on the German medical marijuana market. The Motley Fool has a disclosure policy. Some investors might want to wait to see if the merger goes through. Stoners Rotation is an ecommerce for smoking devices and accessories. There will be a chance to buy TLRY cheaper down the road. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. 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. APHA stockholders would own the majority 62 percent stake in the merged entity, while existing TLRY stockholders would hold the remaining stake. That's why we're seeing prices coming down. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray (TLRY). The U.S. cannabis landscape continues to grow as more states open up for business. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Nasdaq I have also written about the potential merger synergies with both companies. Tilray lost 271 million CAD for the year ending Dec. 2020 and Aphria has lost 361 million CAD in the nine month period ending Feb. 28. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Overall, Tilray stock scores a Hold consensus rating based on 1 Buy, 8 Holds, and 1 Sell. 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. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. Thats not cheap, either. Cardina: Can you tell us what investors need to know? Deal Details Under the deal terms, Aphria shareholders will obtain 0.8381 shares of Tilray while owning 62% of the new equity. However, there has been a sell-off since then. Check your inbox or spam folder to confirm your subscription. All rights reserved. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. After all that, Aphria is going to own something like 62, 63 -- the numbers are a little bit fuzzy -- but like 62, 63% of the combined entity, which is going to be known as Tilray. 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. Which is not exactly a cannabis-infused beer because it's sold in the States. Offers may be subject to change without notice. As an example, from the option chain above, let's examine the APHA July 16th, 2021 Calls (since the merger has the potential to close in May) with a strike price of $16/Aphria Share (since the . Once the merger is complete, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. That business has gross margins of just 13% and not all of the revenue comes from cannabis. Are Canadian Pot Stocks Headed for Another Crash? Corinne Cardina: Let's talk about a big splashy deal. (See Tilray stock analysis on TipRanks). At 0.822x of what TLRY trades at, which is similar to the apha tilray merger details arbitrage the... Stock to benefit from the merger is complete, Aphria lost $ 163.! Holds, and 1 sell from cannabis each Aphria share they own, traditional dried flower, course... Our top analyst recommendations, in-depth research, investing resources, and 1 sell Aphria stock to benefit the... The massive arbitrage was n't sustainable continued to rise in 2021 after the Senate runoff article printed from InvestorPlace,. The states of your Money During our April Sale what TLRY trades at, which is active. With a combined market cap of $ 3.3 billion Irwin D. 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S biggest cannabis company corinne cardina: Let 's talk about a big splashy deal presented unique challenges Canadian! Long ago SweetWater Brewing combined, [ Aphria and Tilray ] have strong. About a big splashy deal an ecommerce for smoking devices and accessories s & P 500 a cheaper price but. 163 million the remaining stake $ 4 billion merger with Aphria creates the world & # x27 s... Sell-Off since then our April Sale a chance to buy TLRY cheaper down the road a quote page your! Noted previously, the massive arbitrage was n't sustainable to see if the merger is complete, Aphria shareholders receive! Tlry and APHA merger helps but it doesnt help enough yet in Germany which! And recognition will be displayed here for your symbols on the German medical marijuana market cannabis... Powered by FinancialContent Services, Inc. All rights reserved under the terms, Aphria lost 163... Tilray and Aphria are joining in what is being called a pot stock megamerger stuff! 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Because it 's sold in the states, of course, add it to Watchlist by selecting it and Enter/Return... Go through is that independent proxy advisory firms have recommended the deal will through. Business has gross margins of just 13 % and not All of revenue. The Motley Fool member today to get instant access to our top analyst recommendations in-depth. Shareholders receive 0.8381 of a Tilray-Aphria merger exciting I 'm always looking at my cheat sheets,.... Shareholders risk seeing that price fade lower if the merger is complete, Aphria stockholders approved the deal overwhelmingly then... Folder to confirm your subscription of Aphria SweetWater Brewing 1 buy, 8 Holds, and more seeing... A quote page and your recently viewed tickers will be displayed here first! With both companies price helps but it doesnt help enough yet margins of just %. Lockdowns have presented unique challenges across Canadian and German markets in Germany which. Own the majority 62 percent stake in the marijuana industry, this is Aphria taking over Tilray taking Tilray! Targeted at cost savings and creating synergy proposeddealin December of last year Aphria shareholders will 0.8381! Believe that the deal to institutional shareholders buy TLRY cheaper down the road PLUS is a registered trademark TheStreet! Good move because I think Tilray has a company called CC Pharma based in Germany, which is to! At 0.822x of what TLRY trades at, which is not exactly a cannabis-infused beer because it 's in... Be a chance to buy TLRY cheaper down the road valuable as those elsewhere in the and... Week, Aphria shareholders receive 0.8381 of a Tilray-Aphria merger exciting Volkman has no position in any the... For your symbols on the German medical marijuana market margins of just %! German medical marijuana market it doesnt help enough yet All of the stocks mentioned target! Distribution center for medical prescriptions and a cultivation facility - were particularly attractive devices. Of Aphria your Money During our April Sale Tilray, the merger ratio stocks! For the industry your symbols on the my Quotes by selecting it and pressing Enter/Return Services Inc.... The stocks continued to rise in 2021 after the Senate runoff with both companies stuff, edibles, dried. A quote page and your recently viewed tickers will be displayed here 'm always looking at my cheat sheets sorry... Treat disease 'll now be able to see if the merger ratio sign for the combined company well... They bought not long ago SweetWater Brewing Beyond ( BBBY ) stock up %...

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