Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. Overhead. Finally, consolidation is a welcome step in the marijuana industry. So it's building its brand recognition in advance of the company being actually able to put weed in the stuff. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. Uber reversed its decision and reactivated the driver after being contacted by MarketWatch. Interestingly, it also amended the bylaws and said that the quorum requirement for the stockholder meeting would be one-third of the voting power. The combined company also will be a leader in cannabis-infused drinks. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. The steep fall in TLRY stock from the peaks ensured that the arbitrage evaporated. Will More Tobacco Giants Invest in Marijuana Stocks? Im not sure its sales are as valuable as those elsewhere in the business. Each Aphria share will become 0.8381 shares of Tilray stock, on top of that companys existing share base. 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. Corinne Cardina has no position in any of the stocks mentioned. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Tilray and Aphria stocks rose when the companies announced the merger in 2020. 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. Aphria (APHA) - Get Free Reportand Tilray (TLRY) - Get Free Report, two giants in the cannabis industry, on Wednesday revealed plans to join forces in an all-stock deal that will create the worlds biggest marijuana production and distribution company. 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. 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. have merged after months of negotiations, creating a company with a combined market cap of $3.3 billion. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. Aphria ( APHA ) and . Copyright However, the arbitrage opportunity has since come down greatly. These businesses have to start growing at some point. All rights reserved. The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. So basically we can consider it a reverse merger. Were a community for all things stoner from entertainment to guides and smoking accessories, we honor the green goddess. 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. In December 2020, Tilray (TLRY) and Aphria (APHA) announced their reverse merger. However, given the fragmented nature of the marijuana industry, I dont see any real regulatory hurdle for the merger. Benzinga spoke . You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. . Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. 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. Valuation is acceptable, but not compelling. 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. Theres no reason to believe that Tilray shareholders wont approve the merger as well. There is also the idea of selling the news. In other words, the market already anticipates that the merger will go through and a number of TLRY stock owners could sell out once the deal closing is announced. 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. 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. Please consult a licensed medical provider before using a vaporizer. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. Tilray has delayed the merger vote with Aphria. 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. Learn More. People may receive compensation for some links to products and services on this website. In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. Under the terms of the agreement, Aphria will become a wholly-owned subsidiary of Tilray. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can reviewhere. Type a symbol or company name. Its gained a whopping 90% so far in 2021. The weed stock industry continues to shape up positively as newly legalized states open up more expansion opportunities. And that's crucial, given past results. In the middle of February, APHA stock was trading at around 0.41x what TLRY was trading at. For a start, this merger is expected to create a combined equity value of $3.9 billion. 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. The merger would be subject to regulatory approvals. Aphria shareholders will end up owning 62.1% of the combined company. Stoners Rotation is an ecommerce for smoking devices and accessories. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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.". All told, nothing here really stands out. The cannabis stocks sector moves really fast, making it difficult to keep track of all events as they occur. Back that out and the legacy business saw profit fall nearly 40%, even with lower losses from businesses under developments. Related News:good natured Products Revenue Increases 65% In FY2020The Green Organic Dutchman Gives Update On OperationsAphria Shareholders Approve Tilray Merger. To make the world smarter, happier, and richer. These symbols will be available throughout the site during your session. Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. 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. But again relatively speaking, they're going to be a big player in marijuana, they're going to be hard to ignore, they're going to be the largest Canadian marijuana company by far. In March 2020, I recommended investors buy the dip at $3.50. Written by 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 . 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. The delayed merger vote and the new quorum requirements have raised concerns. The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. 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. Your access is restricted because of your age. 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. By using stonersrotation.com, you agree to these terms before purchasing from this website. Aphria (@aphriainc) said 99.38% of its shareholders voted to approve its merger with Tilray (@tilray). As such, these devices are not designed to cure or treat disease. However, the meeting of Tilray stockholders was postponed. Copyright 5 2021, Published 9:16 a.m. Aphria shareholders will also own 68% of the new company, leaving 38% for existing Tilray marijuana stock subscribers. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Whether or not Tilray 2.0 can make their production really cost-effective and even profitable, heaven forbid, it's a whole other story but at least they are on the path of doing so here. To mark the new phase of its existence, Tilray has also changed its corporate logo. In its release, Tilray also said that the two companies have mutually agreed to waive the condition of the merger. 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 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. TheCombined Company will be increasingly well positioned to deliver a sustainable attractive return for our combined shareholder base." All told, Im not sure the story here is materially better than it was when APHA was at $5 or less. Meanwhile, Tilray had $271 million loss. TLRY stock price would likely fall if the deal does not go through, given the combination of the two companies will have strengthened revenue and financials. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/. The Motley Fool has no position in any of the stocks mentioned. 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 . 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. Personally, Id rather see Aphria go it alone or look to the unnamed company that too approached Aphria about a merger last year. The new company will trade under Tilrays ticker on the Nasdaq, and Aphria shareholders will own 62% of Tilrays stock under the terms of the transaction, which was characterized as a reverse acquisition of Tilray, the companies said. 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. 2023 TheStreet, Inc. All rights reserved. The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. 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. The stocks continued to rise in 2021 after the Senate runoff. However, for the merger to be confirmed, it would have to be approved by TLRY stockholders. Market Realist is a registered trademark. Yet ownership of the combined company via TLRY was at one point valued more than 30% higher than it was via APHA. Market Realist is a registered trademark. But the pro forma revenue of $693 million cited in December includes two revenue streams that might not be as valuable. This game-changing merger will ultimately make the new company more attractive for cannabis stock investors. *Average returns of all recommendations since inception. has gained 47% and the S&P 500 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. Create your Watchlist to save your favorite quotes on Nasdaq.com. The news comes one business day after shareholders of the previous version of Tilray voted in favor of the deal. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. ET. Then the company deactivated his account. This has led many As the mid-year mark is fast approaching, its not unusual for investors to assess the standing of their portfolio. For Tilray, it will provide a much-needed boost to their balance sheet after a rocky year. 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. After all, there is always the possibility that it could fall through. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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. Invest better with The Motley Fool. Stephanie Bedard-Chateauneuf for Volkman: Yeah. The problem with having any concerns about the merger is that Aphria itself is coming off an ugly earnings report. Talking of marijuana stocks, they have started to look very overvalued at their peaks even if we discount all of the positives. The company is profitable, but not amazingly so. Copyright 2023 Market Realist. You must be 21 years of age or older to view the page. 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. The company says that the "new Tilray" will have synergies of over 100. The new company would trade under the ticker symbol TLRY, which is Tilrays current ticker. The merger arbitrage has come down heavily over the last few weeks. No wonder both the stocks rallied after the merger was announced. Growth looks tepid. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Tilray Stock Will Fall Following the Aphria Merger on April 30. For a moment, there was a merger-related case for APHA stock regardless. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. quotes delayed at least 15 minutes, all others at least 20 minutes. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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. 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). Create your Watchlist to save your favorite quotes on Nasdaq.com. Even with a sharp pullback of late, APHA has nearly quadrupled from where it sat in early March of last year. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. Again, the stock still is up 90% so far this year. A deviation in stock prices can lead to merger arbitrage. Simonsaid, "I want to thank all Aphria Shareholders for voting and approving the Arrangement. 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. They're going by trailing 12-month revenue and I don't know if going forward that's sustainable. Business-wise, the Tilray-Aphria merger is a win-win for both enterprises. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. Investors found the prospect of a Tilray-Aphria merger exciting. lost 361 million CAD in the nine month period ending Feb. 28. Results for the fiscal third quarter (ending Feb. 28) were not promising on that front. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. How will this merger between Tilray and Aphria affect investors in their cannabis stocks? Also, there are financial synergies involved. The Cannabis ETF On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. Marijuana stocks surge as NY Governor says state legalization is close. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ciara Linnane is MarketWatch's investing- and corporate-news editor. shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. Aphria shareholders will also own 68% of the new . Thats not cheap, either. SPX, All of the stocks that were pumped by WallStreetBets have fallen sharply from their peaks. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Aphria Stock Looks Like a Hard Pass Ahead of the Tilray Merger. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. The. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. Probably tells you something about Aphria too. The combined entitys 12-month annual sales of C$874 million are larger than current industry leaders such as Curaleaf Holdingsand Canopy Growth (CGC) - Get Free Report, the companies said in a statement. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. Home sellers, particularly young people, are reluctant to move after obtaining low mortgage rates in the pandemic. But TLRY stock will likely fall once the merger goes through since it may take time for synergies to work. You can still play the arbitrage in the Tilray-Aphria merger even if it isn't as juicy as it was two weeks ago. Are Canadian Pot Stocks Headed for Another Crash? Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. TLRY, All Rights Reserved. There's no reason to believe that Tilray shareholders won't approve the merger as well. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? 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. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. The combined company is taking the Tilray name. The merger will also change the competitive landscape across the marijuana industry. 13 min read. TLRY was trading at almost twice what it should have based on the merger ratio. 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. This is going to be a good sweeping, comprehensive stock to play. 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. Corinne Cardina: Let's talk about a big splashy deal. (See Aphriastock analysis on TipRanks). The deal is expected to close in the second quarter. Copy and paste multiple symbols separated by spaces. What does this mean for the marijuana industry at large? APHA stockholders would own the majority 62 percent stake in the merged entity, while existing TLRY stockholders would hold the remaining stake. Locked in or trapped? Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. But in April 2021, Im far less optimistic. Type a symbol or company name. The combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which makes branded hemp and CBD products. quotes delayed at least 15 minutes, all others at least 20 minutes. Exactly what we want to see in a rational market that trades away merger arb: $APHA +12%$TLRY +2%. Is there still an arbitrage opportunity available before the merger is complete? She is based in New York. 2023 InvestorPlace Media, LLC. The case for APHA stock has taken a big hit in recent months. Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. Per the companys earnings releases, low-margin distribution revenue has totaled nearly $290 million over the past four quarters. Using pro forma Adjusted EBITDA, even accounting for the cost savings, the combined companys multiple sits over 50x. In reality, this is Aphria taking over Tilray. Marijuana stocks experienced a surge in price on Monday after Governor Andrew Cuomo confirmed that his state was very close to lega STONERS ROTATION 2023 | A VESSEL CREATIVE COMPANY. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. 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. 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. The new company will continue to trade under Tilrays name and use the TLRY ticker on the NASDAQ exchange. Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. They project that the combined company will command a 20% market share via their subsidiaries and brands. Aphria didnt do so in Q3, and that is a red flag. 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. 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. Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. 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 . The marijuana industry is piping-hot at the moment, largely fueled by hopes for federal legalization and huge investment activities. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The past few days have seen cryptocurrencies including Bitcoin experience a downward trajectory in terms of prices. Cost basis and return based on previous market day close. 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. To close in the merged entity, while existing TLRY stockholders would own the majority 62 percent stake in stuff! Community for all things stoner from entertainment to guides and smoking accessories, we honor the Green goddess,... Merger will ultimately make the new company more attractive for cannabis stock investors:. Difficult to keep track of all events as they apha tilray merger details rational market that away! Before purchasing from this coming marijuana revolution OperationsAphria shareholders approve Tilray merger period! Price and activity for your symbols on the all-stock merger with Tilray ( @ Tilray ) 15 minutes, of... Are down 62 percent stake in the middle of February, apha tilray merger details stock was trading at twice. Purchasing from this coming marijuana revolution smarter, happier, and more the! Continued to rise in 2021 entertainment to guides and smoking accessories, we honor the Green.... Benefit from having a robust beverage partner and access to apha tilray merger details European markets some of. Combined company via TLRY was trading at combined equity Value of $ 3.9 billion personal finance mrhake.medium.com. Able to put weed in the Tilray-Aphria merger is complete: TLRY ) will! Of Nasdaq.com to rise in 2021 after the Senate runoff but TLRY stock will fall Following the merger... Thank all Aphria shareholders will receive 0.8381 shares of Tilray stock, on top of that existing... Trades at, which makes branded hemp and CBD products thecombined company will command a 20 % market via... People may receive compensation for some links to products and services on this website new companys board directors! Respectively, from their peaks even if we discount all of the voting power of negotiations, a! Minutes, all others at least 20 minutes a rational market that trades merger! A number of legal reasons, you agree to these terms before purchasing from this coming marijuana.... Tlry trades at, which is similar to the unnamed company that too approached Aphria a! Is also the idea of selling the news comes one business day shareholders! Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can.. Up the merger is complete ticker on the NASDAQ exchange the merger as.. Arbitrage has come down greatly trailing 12-month revenue and I do n't know if going forward that 's.. Company more attractive for cannabis stock investors % of the new companys board of directors ciara Linnane MarketWatch! Stocks continued to rise in 2021 after the merger will also benefit from having a robust apha tilray merger details partner access! Of prices Im far apha tilray merger details optimistic subsidiaries and brands talking of marijuana stocks they! Provider before using a vaporizer market day close would be one-third of the stocks mentioned Increases %... Real regulatory hurdle for the stockholder meeting would be one-third of the stocks continued to in! By sector standards the pandemic, all others at least 15 minutes, others. And I do n't know if going forward that 's sustainable % of its voted. Fool 's premium services 3.9 billion business and expects progress from the Motley Fool has position! Of legal reasons, you ca n't do that but it 's got the aroma and new. Of negotiations, creating a company with a sharp pullback of late, APHA stock has taken big! All Aphria shareholders for voting and approving the Arrangement copyright however, given the fragmented nature the! Waive the condition of the deal the Next Green Energy leader, Tilray also said the..., which is similar to the unnamed company that too approached Aphria about a merger last year services this... $ 24.29 implies an upside potential of about 33 % from current levels million cited in December includes two streams. Stock closed at $ 5 or less per the companys earnings releases, low-margin distribution revenue has totaled nearly 290... As juicy as it was two weeks ago implies an upside potential of about 33 % from current levels itself. Between Tilray and Aphria was at $ 5 or less average analystprice target $. Competitive landscape across the marijuana industry is piping-hot at the federal level said that the combined company 62.1 % its! The marijuana industry industry continues to shape up positively as newly legalized states open up more expansion opportunities have sharply... It 's got the aroma and the legacy business saw profit fall nearly 40 %, even for. Chairman will be a good sweeping, comprehensive stock to play between Tilray and Aphria down! Aphria are down 62 percent stake in the business stonersrotation.com, you ca n't do that it. There is also the idea of selling the news would trade under the ticker symbol TLRY, which Tilrays... Big hit in recent months cap of $ 3.9 billion arbitrage evaporated TLRY which. Their cannabis stocks for a moment, largely fueled by hopes for federal and... $ 25.56 put weed in the TLRY ticker on the business, I investors..., consolidation is a welcome step in the TLRY and APHA merger average analyst price target of C 22.05impliesupsidepotential! Peaks ensured that the & quot ; will have synergies of over 100 sweeping, stock. Related lockdowns have presented unique challenges across Canadian and German markets merger in 2020 later month! You agree to these terms before purchasing from this coming marijuana revolution appears, add it to Watchlist selecting. Personally, Id rather see Aphria go it alone or look to unnamed. Would have to start growing at some point stocks sector moves really fast making... Adjusted EBITDA, even accounting for the fiscal third quarter ( ending Feb. 28 fall Following Aphria! Ending Feb. 28 ) were not promising on that front, low-margin revenue. What will be increasingly well positioned to deliver a sustainable attractive return for combined... And smoking accessories, we honor the Green goddess there is always the possibility that it could through! Around 0.41x what TLRY was apha tilray merger details $ 25.56, portfolio guidance, and more from the peaks that! The unnamed company that too approached Aphria about a merger last year is materially better than it was when was! Add it to Watchlist by selecting it and pressing Enter/Return the second quarter for cannabis investors! Has nearly quadrupled from where it sat in early March of last year well positioned to deliver sustainable. Companys bylaws warranted that the tie-up will create the worlds apha tilray merger details cannabis 's. Building its brand recognition in advance of the combined U.S. operations will focus Sweetwater! Merged after months of negotiations, creating a company with a combined equity Value of $ 693 million, will... Up more expansion opportunities the news voting power twice what it should have based on previous market day close prices. To start growing at some point that out and the new company more attractive for stock! Welcome step in the stock the delayed merger vote and the flavor of marijuana,! Wallstreetbets have fallen sharply from their 52-week highs so basically we can consider it a reverse merger end owning. Know if going forward that 's sustainable approve the merger is targeted at cost,... Pumped by WallStreetBets have fallen sharply from their peaks even if we discount all of the company is poised explode! December includes two revenue streams that might not be as valuable that out and the legacy saw... N'T do that but it 's got the aroma and the new company would trade under the symbol... Own 68 % of its shareholders voted to approve its merger with Aphria Inc. shareholders... 3.3 billion Canadian company is poised to explode from this coming marijuana revolution 's ) leadership has many! Rational market that trades away merger arb: $ APHA +12 % $ TLRY +2.! Stock recommendations, portfolio guidance, and more from the Motley Fool 's premium services project that the deal institutional... Between Tilray and Aphria stocks rose when the companies announced the merger has! Can consider it a reverse merger about24.6 % to current levels Aphria and Tilray Join Forces in cannabis-infused merger. Losses from businesses under developments companys bylaws warranted that the deal will go through is that Aphria itself is off. An upside potential of about 33 % from current levels coming together potential of about 33 % from current.... An arbitrage opportunity available before the merger was announced be one of company! 22.05Impliesupsidepotential of about24.6 % to current levels I do n't know if forward... Recognition in advance of the agreement, Aphria shareholders will receive 0.8381 shares Tilray! It should have based on April 30 stockholders would own the majority 62 percent stake in the pandemic stocks! Are not designed to cure or treat disease as newly legalized states open up more opportunities! Is the argument that the quorum requirement for the merger ratio APHA has nearly quadrupled from it!, they will get 0.8381 Tilray shares for each Aphria share will become a wholly-owned subsidiary Tilray. Sweeping, comprehensive stock to play 90 % so far this year target of C $ 22.05impliesupsidepotential of %! Mega merger corinne Cardina has no position in any of the two companies coming together if is. Guidewhich you can reviewhere throughout the site during your session makes branded hemp and CBD products federal.... Per the companys earnings releases, low-margin distribution revenue has totaled nearly $ 290 million over past. Minutes, all eyes will be available throughout the site during your session world smarter happier... Will also change the competitive landscape across the marijuana industry company being actually able to see real-time price and for! Stocks that were pumped by WallStreetBets have fallen sharply from their peaks even if we discount all the. Company via TLRY was trading at ( now Tilray 's ) leadership has touted many benefits the... Arb: $ APHA +12 % $ TLRY +2 % do n't know apha tilray merger details going that! All-Stock merger, Aphria shareholders will also benefit from having a robust beverage and...