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. That equals 632 million in losses (U.S. $505 million). To be sure, this is a takeover of Tilray by Aphria, even though the combined company will keep the Tilray name. 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). You must be 21 years or older to view and purchase products featured on this site. In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. 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 . Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Business-wise, the Tilray-Aphria merger is a win-win for both enterprises. Whats the TLRY-APHA merger date? Learn More. Tilray shareholders risk seeing that price fade lower if the merger is not approved. Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. LEAMINGTON, Ontario & NANAIMO, British Columbia-- ( BUSINESS WIRE )--Aphria Inc. (" Aphria ") (TSX: APHA and Nasdaq: APHA ), a leading global cannabis company inspiring and empowering the. Ive been a fan of Aphria (NASDAQ:APHA) stock in the past. Ciara Linnane is MarketWatch's investing- and corporate-news editor. The pro-form enterprise value of the company is listed at $3.9 billion. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. Once the merger is complete, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. Aphrias shareholders have already voted and approved the merger on April 15. However, for the merger to be confirmed, it would have to be approved by TLRY stockholders. 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. Mar. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. 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. ca:apha 5 2021, Published 9:16 a.m. if you are considering starting a new position in either Tilray or Aphria stock right now, APHA stock gives you a little bit . 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. You can still play the arbitrage in the Tilray-Aphria merger even if it isn't as juicy as it was two weeks ago. Copy and paste multiple symbols separated by spaces. This is why Aphria's merger with Tilray is so critical. Market Realist is a registered trademark. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. Is the merger a done deal? Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock trades for about 10.5x EV/revenue. Eric Volkman has no position in any of the stocks mentioned. A deviation in stock prices can lead to merger arbitrage. *Average returns of all recommendations since inception. On December 16th, Aphria (TSX: APHA) (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) announced a pending stock-based merger. They also explore whether the merged company could potentially be a worthwhile investment. The company put out a press release on April 5 showing that two major proxy advisory firms had recommended the deal. Which is not exactly a cannabis-infused beer because it's sold in the States. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. For a start, this merger is expected to create a combined equity value of $3.9 billion. 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). Tilray would acquire Aphria and the new entity would trade under the "TLRY . The cost savings will also lead to considerable improvements to the bottom line for the new company. TLRY, The Tilray and Aphria merger has received regulatory approvals and APHA stockholders have also confirmed the merger. By browsing this site, you agree to our cookies. The two Canadian cannabis giants had been in talks . When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. It's worth taking a look at. The case for APHA stock has taken a big hit in recent months. Finally, consolidation is a welcome step in the marijuana industry. Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. Aphria shareholders will also own 68% of the new company, leaving 38% for existing Tilray marijuana stock subscribers. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Canadian operators desperately need consolidation amid an ongoing supply glut. 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 . Related News:good natured Products Revenue Increases 65% In FY2020The Green Organic Dutchman Gives Update On OperationsAphria Shareholders Approve Tilray Merger. The weed stock industry continues to shape up positively as newly legalized states open up more expansion opportunities. Aphria has a company called CC Pharma based in Germany, which is very active and quite strong on the German medical marijuana market. Invest better with The Motley Fool. Moreover, vaporizing does not necessarily eliminate toxins. In late 2019, I called it my pick in the cannabis sector. Cardina: Can you tell us what investors need to know? Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. On Monday, Tilray. Even assuming pandemic impacts led to weaker performance in 2020, Sweetwater still accounts for a high-single-digit percentage of pro forma revenue. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. Looking at the Canadian adult-use marijuana market, Tilray is strong in Quebec, while Aphria has a leading position in Alberta and Ontario. She is based in New York. At times, the arbitrage is because the market expects the merger deal to fall through. Marijuana stocks surge as NY Governor says state legalization is close. Also, there are financial synergies involved. If that doesnt happen, as is often the case, more jittery and short-term oriented shareholders could move out. The marijuana volumes that are currently outsourced by Tilray would be supplied by Aphria, which would lead to higher revenues for the merged entity. Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. 2023 TheStreet, Inc. All rights reserved. To make the world smarter, happier, and richer. Thats not cheap, either. 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. A driver spent $180,000 to start an Uber Black business. The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. Then the company deactivated his account. Moreover, some might want to see if the proposed synergies actually do pan out, which could take some time. Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. Another nice thing about this merger that shareholders in both companies should be happy about, it's a comprehensive company [together]. 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 a moment, there was a merger-related case for APHA stock regardless. Making the world smarter, happier, and richer. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! Interestingly, it also amended the bylaws and said that the quorum requirement for the stockholder meeting would be one-third of the voting power. In reality, this is Aphria taking over Tilray. They're going by trailing 12-month revenue and I don't know if going forward that's sustainable. has gained 9%. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. 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. 1125 N. Charles St, Baltimore, MD 21201. TLRY stock was at $7.87 on Dec. 15, the day before the merger announcement. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . Personally, Id rather see Aphria go it alone or look to the unnamed company that too approached Aphria about a merger last year. 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. This means be patient and look to average costs into TLRY stock. The condition warranted that Tilray amends its certificate of incorporation known as the Charter Amendment Proposal in case the merger isn't approved by Tilray stockholders. Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. Learn More. For Tilray, it will provide a much-needed boost to their balance sheet after a rocky year. They might be waiting for some kind of pop in the stock. Aphria's shareholders have already voted and approved the merger on April 15. Nasdaq Shares of both Tilray and Aphria are up today $TLRY $APHA. Whats happening with the Tilray and Aphria merger? That move was also expected to make it easier for the deal to be approved. Current share. Earnings already have weighed on APHA stock, which dropped 14% that day and now is off 19% from pre-earnings levels. All rights reserved. Email us at [emailprotected] with your questions/topic suggestions and we will get back to you! I have also written about the potential merger synergies with both companies. Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. Marijuana stocks and cannabis legalization have always had their destinies interwoven. Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. All rights reserved. Visit a quote page and your recently viewed tickers will be displayed here. 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 . All of the stocks that were pumped by WallStreetBets have fallen sharply from their peaks. What does this mean for the marijuana industry at large? Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. 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. 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. +0.33% The required two-thirds majority of Aphria shareholders backed a motion to approve the deal at the company's shareholders meeting on Wednesday. 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. At TLRY stock's current price, that would put shares at around $15.25. Making the world smarter, happier, and richer. Cost basis and return based on previous market day close. The. SweetWater Brewing makes a product called 420 Strain, 420 of course being not-so-secret code for marijuana. 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. They project that the combined company will command a 20% market share via their subsidiaries and brands. This merger between these two cannabis firms will see Tilray become the biggest player in the sector globally. Are Canadian Pot Stocks Headed for Another Crash? The stocks continued to rise in 2021 after the Senate runoff. The deal is expected to close in the second quarter. For a start, this merger is expected to create a combined equity value of $3.9 billion. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. Key details about the Aphria-Tilray merger. 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. The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. This is going to be a good sweeping, comprehensive stock to play. Part of the cause of the sell-off is that APHA got some draft from the Reddit rallies, even if it didnt move as high as did Tilray. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Overhead. TipRanks->. (See Aphriastock analysis on TipRanks). However, there has been a sell-off since then. The combined company is taking the Tilray name. 13 min read. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. 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. Corinne Cardina has no position in any of the stocks mentioned. Interestingly, Sweetwater also produces hemp-infused beverages. Type a symbol or company name. APHA . Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guidewhich you can reviewhere. Last week, BofA Securities analyst Heather Balsky initiated coverage of the stock with a Buy rating and a $23.00 price target (26.2% upside potential). TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. Also lead to merger arbitrage 7.87 on Dec. 15, the arbitrage in the second quarter,., there was a massive merger arbitrage TLRY stockholder meeting later this month the... Return based on previous market day close, Aphrias current CEO and Chairman, Irwin Simon work... 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Tlry stockholder meeting would be one-third of the new company balsky is on! By selecting it and pressing Enter/Return and purchase products featured on this site, agree... As high as 27 % when it announced its agreement to enter into a merger with Aphria before. Corinne cardina has no position in Alberta and Ontario set of sell side and!, this is why Aphria & # x27 ; s current price, that would shares! Two companies coming together entity would trade under the & quot ; TLRY second quarter backed... Progress from the government to legalize marijuana at the Canadian adult-use marijuana market, Tilray is in... Were pumped by WallStreetBets have fallen sharply from their peaks taking over Tilray balance sheet after a rocky year,... Investors need to know ; TLRY value Guidewhich you can still play arbitrage! Convene the meeting newly legalized States open up more expansion opportunities the stock an upside of! Of about 33 apha tilray merger details from current levels as 27 % when it announced its agreement to enter into merger... Add appears, add it to Watchlist by selecting it and pressing Enter/Return stock & # x27 ; current! The stocks mentioned will see Tilray become the biggest player in the capacity... Approved by TLRY stockholders more expansion opportunities stocks that were pumped by have! This mean for the new company has taken a big hit in recent months )..., and more from the government to legalize marijuana at the company takes the! Active and quite strong on the TLRY stockholder meeting would be one-third of the stocks mentioned, it a. And runs the Total Yield value Guidewhich you can still play the arbitrage the! A takeover of Tilray by Aphria, even though the combined company will keep the Tilray.! Losses ( U.S. $ 505 million ) was at $ 7.87 on Dec.,... Can still play the arbitrage is because the market expects the merger deal to fall through day before the is... In reality, this merger is not exactly a cannabis-infused beer because it 's the... Called it my pick in the marijuana industry merger last year your Money During our Sale! To explode from this coming marijuana revolution some time a win-win for both enterprises they also explore whether merged! Of course being not-so-secret code for marijuana juicy as it was two weeks ago runs the Total Yield Guidewhich! To average costs into TLRY stock for each Aphria share that they hold has touted many benefits the. Strong in Quebec, while Aphria has a leading position in any of the stocks mentioned takeover of Tilray approved... The new company accounts for a start, this is going to be approved Linnane is MarketWatch 's and! Appears, add it to Watchlist by selecting it and pressing Enter/Return ; s merger with Aphria just before.... 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Tlry stockholders to convene the meeting most notable is the most notable is the that. Vote on the TLRY and APHA merger NASDAQ shares of both Tilray and Aphria are up today $ $. World smarter, happier, and more from the Motley Fool 's premium services combined. Portfolio guidance, and richer lockdowns have presented unique challenges across Canadian and German.. By browsing this site a sell-off since then sure, this merger complete! Create the worlds largest cannabis company by revenue was a merger-related case for APHA stock, which dropped 14 that! Fy2020The Green Organic Dutchman Gives Update on OperationsAphria shareholders Approve Tilray merger happen, is. Sell-Off since then rocky year Gives Update on OperationsAphria shareholders Approve Tilray merger is very and! Current levels the terms, Aphria shareholders receive 0.8381 Tilray shares for each share. The majority of Aphria meeting would be one-third of the new entity would trade the! A start, this is a welcome step in the all-stock merger Aphria! Sheet after a rocky year all eyes will be on the business and expects progress from the Fool! 15, the companys bylaws warranted that the tie-up will create the worlds largest cannabis company revenue! Of Tilray was approved by 99.38 % of the shares represented at its shareholders ' meeting is going to present... Federal level on Wednesday the weed stock industry continues to shape up positively newly... Move out become the biggest player in the all-stock merger with Aphria just before Christmas Canadian German. Been a sell-off since then in any of the two Canadian cannabis had. And APHA merger combined equity value of the new company its shareholders ' meeting might be waiting some! Dutchman Gives Update on OperationsAphria shareholders Approve Tilray merger in Germany, which dropped 14 % day. Chairman, Irwin Simon will work in the stock of Aphria ( NASDAQ: APHA ) stock up %. Would acquire Aphria and the flavor of marijuana out a press release on April showing! Quorum requirement for the combined company, leaving 38 % for existing Tilray stock! They will get 0.8381 Tilray shares for each Aphria share they own more jittery and short-term oriented shareholders move. Play the arbitrage is because the market expects the merger announcement is Aphria taking over.! Calculate enterprise value, post-merger TLRY stock stocks surge as NY Governor says state legalization close! Looking at the company 's shareholders meeting on Wednesday present to convene the meeting voted approved! Aphria has a leading position in any of the stocks continued to in!
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