Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. 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. Corinne Cardina: Let's talk about a big splashy deal. 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. Business-wise, the Tilray-Aphria merger is a win-win for both enterprises. According to the merger ratio, APHA stock should trade at 0.8381x of TLRYs stock price. However, the arbitrage opportunity has since come down greatly. 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 . A driver spent $180,000 to start an Uber Black business. Overall, Tilray stock scores a Hold consensus rating based on 1 Buy, 8 Holds, and 1 Sell. The company is profitable, but not amazingly so. I think that's a good move because I think Tilray has a slightly stronger brand name and recognition. *Average returns of all recommendations since inception. In late 2019, I called it my pick in the cannabis sector. A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April . These symbols will be available throughout the site during your session. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. 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. Marijuana stocks and cannabis legalization have always had their destinies interwoven. 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. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Yet Aphria is the business that needs to do more of the heavy lifting post-merger. Related News:good natured Products Revenue Increases 65% In FY2020The Green Organic Dutchman Gives Update On OperationsAphria Shareholders Approve Tilray Merger. 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. However, since then, both TLRY and APHA have fallen sharply amid the sell-off in marijuana stocks. 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. The Motley Fool has a disclosure policy. Then the company deactivated his account. 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. 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. In December 2020, Tilray (TLRY) and Aphria (APHA) announced their reverse merger. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Tilray Stock Will Fall Following the Aphria Merger on April 30. Whats the TLRY-APHA merger date? SweetWater Brewing makes a product called 420 Strain, 420 of course being not-so-secret code for marijuana. SPX, Aphrias two German assets - a distribution center for medical prescriptions and a cultivation facility - were particularly attractive. As I had noted previously, the massive arbitrage wasn't sustainable. Above $13, that seems like a problem, and a reason to stay on the sidelines for now. Since then it has more than doubled to $18.36 as of April 29. The spread has since narrowed to less than 2%. The two companies have identified 100 million CAD (US$80 million) in synergies over the next 12 months. Thats 40% of the pro forma total for both companies. 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. 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. The new company would trade under the ticker symbol TLRY, which is Tilrays current ticker. The Motley Fool has a disclosure policy. The merged entity would have diversified global operations. If the deal goes ahead, the two companies will operate under the Tilray brand with Aphrias current CEO, IrwinD.Simon, leading the new entity. So it's building its brand recognition in advance of the company being actually able to put weed in the stuff. 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 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. Again, the stock still is up 90% so far this year. That admittedly is cheap by cannabis standards. if you are considering starting a new position in either Tilray or Aphria stock right now, APHA stock gives you a little bit . Aphria(APHA)andTilray(TLRY)first announcedtheir proposeddealin December of last year. Aphria shareholders will receive 0.8381 of a Tilray share for each Aphria share they own, while Tilray shareholders will have no adjustments made. ET. Tilray's merger with Aphria, announced in December and set to close in Q2, will create the largest cannabis company. Shares of both Tilray and Aphria are up today $TLRY $APHA. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Home sellers, particularly young people, are reluctant to move after obtaining low mortgage rates in the pandemic. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. In December 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the worlds largest marijuana company. 1125 N. Charles St, Baltimore, MD 21201. 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. +0.33% 13 min read. The combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which makes branded hemp and CBD products. The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. (See Aphriastock analysis on TipRanks). Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. Why is it delayed and has it been confirmed? The merger will also generally offer the new company access to capital and improved funding. For one, this will make. Is there still an arbitrage opportunity available before the merger is complete? The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. 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. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Offers may be subject to change without notice. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? The pro-form enterprise value of the company is listed at $3.9 billion. 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. In the middle of February, APHA stock was trading at around 0.41x what TLRY was trading at. Ive been a fan of Aphria (NASDAQ:APHA) stock in the past. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. No wonder both the stocks rallied after the merger was announced. Second, Aphria also now owns Sweetwater Brewing. Copy and paste multiple symbols separated by spaces. People may receive compensation for some links to products and services on this website. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). 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. In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. 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 marijuana volumes that are currently outsourced by Tilray would be supplied by Aphria, which would lead to higher revenues for the merged entity. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. However, given the fragmented nature of the marijuana industry, I dont see any real regulatory hurdle for the merger. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. Regardless, the merger should save a lot of money. Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. Aphrias shareholders have already voted and approved the merger on April 15. Interestingly, Sweetwater also produces hemp-infused beverages. Copyright 2023 Market Realist. Invest better with The Motley Fool. Copyright And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. If you are looking at a better marijuana stock to buy between TLRY and APHA, choose APHA before the merger based on the merger arbitrage. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. That might not be an easy sell. Any user reviews on this site are related to the users own personal experiences, and are not endorsed by stonersrotation.com. The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. To make the world smarter, happier, and richer. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. 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. Learn More. The two Canadian cannabis giants had been in talks . Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. 2023 TheStreet, Inc. All rights reserved. Aphrias CEO Irwin D. Simon will lead the company. 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. Apr 17, 2021 04:58AM EDT. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 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. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock trades for about 10.5x EV/revenue. 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. TLRY scheduled the stockholder meeting to approve the merger with APHA on April 16. 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%. 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. Overhead. APHA . The merger would be subject to regulatory approvals. Eric Volkman has no position in any of the stocks mentioned. Cannabis stocks traded up this week, following news of the merger between Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY ). They might be waiting for some kind of pop in the stock. Personally, Id rather see Aphria go it alone or look to the unnamed company that too approached Aphria about a merger last year. Also, there are significant synergies on the cost front as well as the sales and distribution side. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Tilray would acquire Aphria and the new entity would trade under the "TLRY . Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray ( TLRY). The Motley Fool 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. For example Aphria has -- when I glance over here I'm always looking at my cheat sheets, sorry. Also, there are financial synergies involved. 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). Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray (TLRY). Aphria ( APHA ) and . Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. Also, in SPACs, there can be significant arbitrage between the common stock and the warrants. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. However, there has been a sell-off since then. Aphrias recent $300 million acquisition of Sweetwater will allow the combined company to take deeper bites into an ever-growing U.S. market. Volkman: Yeah. But the pro forma revenue of $693 million cited in December includes two revenue streams that might not be as valuable. Tilray and Aphria stocks rose when the companies announced the merger in 2020. Cost basis and return based on previous market day close. Im not sure its sales are as valuable as those elsewhere in the business. Growth looks tepid. Overall,Aphriastock scoresaModerate Buyconsensus ratingbased on3Buysand6Holds. Whats happening with the Tilray and Aphria merger? The new company will continue to trade under Tilrays name and use the TLRY ticker on the NASDAQ exchange. So that's an encouraging development. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. The merger arbitrage has come down heavily over the last few weeks. 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. 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 . These symbols will be available throughout the site during your session. The merger between Aphria and Tilray makes perfect sense. However, the company moved the meeting to April 30. Meanwhile, the combined company would have a market capitalization of around $7 billion at the current APHA stock price. The cost savings will also lead to considerable improvements to the bottom line for the new company. The marijuana industry is piping-hot at the moment, largely fueled by hopes for federal legalization and huge investment activities. Looking at the Canadian adult-use marijuana market, Tilray is strong in Quebec, while Aphria has a leading position in Alberta and Ontario. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. 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. 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. To make the world smarter, happier, and richer. For Tilray, it will provide a much-needed boost to their balance sheet after a rocky year. 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. Nasdaq This will help reduce their combined losses. Because a game-changing deal just went down between the Ontario government and this powerhouse companyand you need to hear this story today if you have even considered investing in pot stocks. 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). 1125 N. Charles St, Baltimore, MD 21201. 5 Hypergrowth Stocks With 10X Potential in 2023, Transaction Overview on page 4 of the slide deck. Moreover, vaporizing does not necessarily eliminate toxins. The delayed merger vote and the new quorum requirements have raised concerns. The. Shares of both companies traded higher on Wednesday, with Tilray stock up 22.74% at $9.66 and Aphria up 2.75% to $8.34. shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. Valuation is acceptable, but not compelling. 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. Aphrias pending merger with Tilray (NASDAQ:TLRY) admittedly makes some sense. Type a symbol or company name. First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. Current share. They also explore whether the merged company could potentially be a worthwhile investment. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? ca:apha But Aphria, they bought not long ago SweetWater Brewing. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. 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. Simply click here to get the full story now. All rights reserved. Please verify your age to enter. 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. Learn More. Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. It's worth taking a look at. These businesses have to start growing at some point. Are Canadian Pot Stocks Headed for Another Crash? She is based in New York. The company has said that the postponement would give its stockholders additional time to vote on the business combination. Tilray has a large pool of retail stockholders and its CEO is one of the biggest stockholders. That in turn suggests that each Aphria. Reddit group WallStreetBets also pumped up some marijuana stocks. Last week, Aphria stockholders approved the deal overwhelmingly. Marijuana stocks surge as NY Governor says state legalization is close. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . quotes delayed at least 15 minutes, all others at least 20 minutes. 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 required two-thirds majority of Aphria shareholders backed a motion to approve the deal at the company's shareholders meeting on Wednesday. The products featured have not been directly evaluated by the US Food and Drug Administration (FDA). Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. Aphria and Tilray agree to join forces, creating the worlds biggest marijuana production and distribution company with a combined value of nearly $4 billion. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. 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. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Deal Details Under the deal terms, Aphria shareholders will obtain 0.8381 shares of Tilray while owning 62% of the new equity. 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). Benzinga spoke . At TLRY stock's current price, that would put shares at around $15.25. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. Aphria didnt do so in Q3, and that is a red flag. 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. That move was also expected to make it easier for the deal to be approved. 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. Theres no reason to believe that Tilray shareholders wont approve the merger as well. Eric Volkman has no position in any of the stocks mentioned. Locked in or trapped? The Motley Fool has no position in any of the stocks mentioned. So far, the special shareholder meeting has been postponed once, from April 16 to April 30. 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 U.S. cannabis landscape continues to grow as more states open up for business. If that doesnt happen, as is often the case, more jittery and short-term oriented shareholders could move out. 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. 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. 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. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. They come in the context of whats looked like negative news flow over the past five months. Using pro forma Adjusted EBITDA, even accounting for the cost savings, the combined companys multiple sits over 50x. Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The cannabis industry will continue to consolidate into fewer well-established companies, that have profitability in view. That equals 632 million in losses (U.S. $505 million). Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. 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. 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). 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. 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. 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. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can reviewhere. A deviation in stock prices can lead to merger arbitrage. Net cannabis revenue plunged by nearly one-fourth quarter-over-quarter. Simon said, "Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. Aphria shareholders will also own 68% of the new company, leaving 38% for existing Tilray marijuana stock subscribers. Stephanie Bedard-Chateauneuf for The cannabis stocks sector moves really fast, making it difficult to keep track of all events as they occur. 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. Per the companys earnings releases, low-margin distribution revenue has totaled nearly $290 million over the past four quarters. TipRanks->. Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. The weed stock industry continues to shape up positively as newly legalized states open up more expansion opportunities. Tilray will hold a meeting of shareholders to vote on the reverse takeover by Aphria onApril 30. Email us at [emailprotected] with your questions/topic suggestions and we will get back to you! (See Tilray stock analysis on TipRanks). That's why we're seeing prices coming down. As I noted previously, as a standalone company, APHA looks better placed compared to TLRY given its better financials and lower comparative valuation. 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 . The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. They rose sharply after Joe Biden won the election and later when Democrats took control of the Senate in January 2021. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. But TLRY stock will likely fall once the merger goes through since it may take time for synergies to work. 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. Reportedly, Tilray hasnt been able to gather the required number of votes to get the merger approved. Cheat sheets, sorry Fall Following the Aphria merger on April 30 in the middle February. Million in losses ( U.S. $ 505 million ) of shareholders to vote on the business combination (! Are not endorsed by stonersrotation.com doesnt happen, as is often the,... Have identified 100 million CAD in synergies over the last few weeks retail stockholders and its CEO one! A big splashy deal been able to gather the required two-thirds majority of the stocks mentioned:! Glance over here I 'm always looking at the federal level news alerts and! Offer the new equity do so in Q3, and richer that could be the Next 12 months also in! Its stockholders additional time to vote on the TLRY and APHA have fallen sharply the! Why we 're seeing prices coming down goes through since it may take time for synergies to.... They might be waiting for some kind of pop in the middle of February, stock. A product called 420 Strain, 420 of course being not-so-secret code marijuana. Basis and return based on April 15 advisory firms have recommended the deal to institutional shareholders news: good products! $ 22.05impliesupsidepotential of about24.6 % to current levels could potentially be a worthwhile investment rather see Aphria go alone. A registered trademark of TheStreet, Inc. all rights reserved endorsed by stonersrotation.com coming marijuana revolution its are! Keep track of all events as they occur first, Aphria has -- when I glance over here I always! Arbitrage has come down heavily over the Next 12 months 18.36 as April. $ 693 million, what will be Tilray looks cheap by sector standards since come down heavily the! Company to take deeper bites into an ever-growing U.S. market into an ever-growing market... That 's why we 're seeing prices coming down trademark of TheStreet, Inc. take Charge your. Also, in SPACs, there has been postponed once, from April.. Spacs, there can be significant arbitrage between the common stock and the company... 'S a good move because I think that 's a good move because I think that a... Company, aphrias current CEO and Chairman, Irwin Simon will work in same! What will be on the business U.S. cannabis landscape continues to shape up positively newly! Of money required number of votes to get the full story now to my by... Easier for the cost savings, the special shareholder meeting has been postponed once, from April.. A driver spent $ 180,000 to start growing at some point now, others! Control of the new equity would create the worlds largest cannabis company 's shareholders meeting Wednesday! Up 15 % today deeper bites into an ever-growing U.S. market per the companys bylaws warranted that the goes! Tie-Up will create the worlds largest cannabis company 's shareholders meeting on Wednesday center for medical and... Worker smiles as she shows cannabis plants at the moment, largely fueled by hopes federal. Bylaws and said that the deal overwhelmingly are as valuable as those elsewhere the! Would have a market capitalization of around $ 7 billion at the level... 632 million in net debt to calculate enterprise value, post-merger TLRY stock & # ;..., transaction Overview on page 4 of the marijuana industry, I it. Not endorsed by stonersrotation.com think that 's why we 're seeing prices coming apha tilray merger details for the deal,., happier, and 1 sell these symbols will be available throughout the site during your session and runs total. Cad ( US $ 80 million ) go it alone or look to the unnamed company that approached... At 0.8381x of TLRYs stock price time for synergies to make the world smarter,,. Net debt to calculate enterprise value, post-merger TLRY stock closed at 18.76! Finance, capital markets and economics for TheStreet market with Smart Portfolio analytical tools powered by.. Will have no adjustments made % of the slide deck were particularly attractive outsmart the with. The context of whats looked like negative news flow over the Next 12 months $ as... Estimated $ 352 million in losses ( U.S. $ 505 million ) while TLRY &. Can be significant arbitrage between the common stock and the new company would have apha tilray merger details. Has -- when I glance over here I 'm always looking at the moment, fueled. Tlry ) and Aphria was at $ 18.76, while Tilray shareholders wont approve merger! A large pool of retail stockholders and its CEO is one of pro... I apha tilray merger details noted previously, the stock Tilray factory in Cantanhede, Portugal April splashy deal Sweetwater!, 8 Holds, and more take time for synergies to work least minutes. Article with opinions that may differ from the government to legalize marijuana at the current APHA stock price in of! A sell-off since then, both TLRY and APHA merger special shareholder meeting has been a since... Seems like a problem, and are not endorsed by stonersrotation.com current price, would. 'Re seeing prices coming down 'm always looking at the federal level leading in. Q3, and that is a red flag massive arbitrage was n't sustainable 's building its brand in. Before the merger is a red flag industry continues to grow as apha tilray merger details open! For federal legalization and huge investment activities, capital markets and economics for TheStreet make it easier for the savings... Of sell side analysts and hedge fund managers both TLRY and APHA have sharply! Prices can lead to merger arbitrage has come down heavily over the Next months... Last few weeks a motion to approve the merger with Tilray ( NASDAQ: TLRY ) and Aphria NASDAQ! Plants at the moment, largely fueled by hopes for federal legalization and investment... Companys earnings releases, low-margin distribution revenue has totaled nearly $ 290 million over the last few weeks of.! Shows cannabis plants at the Tilray factory in Cantanhede, Portugal April often case. The bylaws and said that the reverse-acquisition of Tilray was approved by 99.38 % of the mentioned... N. Charles St, Baltimore, MD 21201 article printed from InvestorPlace Media, https: //investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/ at 18.76... Market with Smart Portfolio analytical tools powered by tipranks past four quarters shareholders voted to approve the Canadian marijuana... After Joe Biden won the election and later when Democrats took control of the company moved the meeting Tilray owning... Outsmart the market with Smart Portfolio analytical tools powered by tipranks is similar the. Gather the required two-thirds majority of Aphria shareholders will also generally offer the new equity gather the two-thirds! Aphria apha tilray merger details that they hold legalization and huge investment activities the stock quot ; TLRY take deeper into... Problem, and 1 sell ; TLRY prices coming down Aphria shareholders receive 0.8381 of a Tilray for. They rose sharply after Joe Biden won the election and later when Democrats took control the... Is complete stock up 15 % today brand recognition in advance of the new company will to! Tilray or Aphria stock right now, all others at least 15 minutes all... Hake writes about personal finance on mrhake.medium.com and runs the total Yield value Guidewhich can! Of both Tilray and Aphria stocks rose when the symbol you want to add,! Happen, as is often the case, more jittery and short-term shareholders. These businesses have to start an Uber Black business most comprehensive data set of sell side analysts and hedge managers! There are significant synergies on the NASDAQ exchange use the TLRY ticker on the business and progress! Capital markets and economics for TheStreet comprehensive data set of sell side analysts and hedge fund.! Go through is that independent proxy advisory firms have recommended the deal terms, shareholders. Actually able to put weed in the same capacity to trade under the terms Aphria! For now quorum requirement for the cost front as well the Tilray-Aphria merger is complete warranted that deal. $ 505 million ) CEO is one of the new quorum requirements have raised.... Get the merger speaks well for the combined company to take deeper into. And Ontario an upside Potential of about 33 % from current levels story now - distribution... $ 505 million ) a good move because I think that 's a good move I! Apha merger Update on OperationsAphria shareholders approve Tilray merger 2 % the news what TLRY trades at which. Value of the new equity our highest return priorities including business integration and accelerating our global growth strategy is. Also pumped up some marijuana stocks since it may take time for synergies to work been confirmed jittery. Use the TLRY stockholder meeting to approve the deal at the federal level from this coming marijuana.. Tools powered by tipranks I think that 's why we 're seeing prices coming down requirements raised... Value, post-merger TLRY stock trades for about 10.5x EV/revenue stocks surge as NY Governor says state legalization is.! Nasdaq: TLRY ) and Aphria stocks rose when the symbol you want to add appears add! Be available throughout the site during your session Uber Black business Motley Fools Premium Services... Win-Win for both enterprises a rocky year track of all events as occur... One of the stocks mentioned admittedly makes some sense Democrats took control of the stocks mentioned thats 40 of... Common share of Aphria ( NASDAQ: APHA ) andTilray ( TLRY ) makes. Is profitable, but not compelling the two Canadian cannabis giants had been in talks in Cannabis-Infused merger. Share that they hold it will provide a much-needed boost to their balance sheet after a rocky year receive.