The merger arbitrage has come down heavily over the last few weeks. Home sellers, particularly young people, are reluctant to move after obtaining low mortgage rates in the pandemic. Tilray has delayed the merger vote with Aphria. Business-wise, the Tilray-Aphria merger is a win-win for both enterprises. First of all, economies of scale. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock trades for about 10.5x EV/revenue. You must be 21 years of age or older to view the page. In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. Offers may be subject to change without notice. That in turn suggests that each Aphria. So it's building its brand recognition in advance of the company being actually able to put weed in the stuff. All Rights Reserved. Marijuana stocks and cannabis legalization have always had their destinies interwoven. The Motley Fool has no position in any of the stocks mentioned. There will be a chance to buy TLRY cheaper down the road. Both stocks will, assuming the merger closes, end up in the same place. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! It also expects that combining Aphria and Tilray will result in around $81 million in pre-tax cost synergies every year. 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. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. In a research note, Bottomley told investorsthat while he believesthe companys3Q "signals a number of red flags" that could impact most cannabis operators, he is downgrading Aphriaas the stockis trading at 97% of the impliedtransactionprice with Tilray. 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 case for APHA stock has taken a big hit in recent months. 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). I should mention, they're also quite active in international markets. Investors found the prospect of a Tilray-Aphria merger exciting. Exactly what we want to see in a rational market that trades away merger arb: $APHA +12%$TLRY +2%. 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%. 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. 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. The pro-form enterprise value of the company is listed at $3.9 billion. 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 . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Meanwhile, some of the claims being made about the merger arent quite on point. The stocks continued to rise in 2021 after the Senate runoff. 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. THCX, 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. Meanwhile, Tilray had $271 million loss. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. This has led many As the mid-year mark is fast approaching, its not unusual for investors to assess the standing of their portfolio. The two companies have identified 100 million CAD (US$80 million) in synergies over the next 12 months. Marijuana stocks surge as NY Governor says state legalization is close. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. In December 2020, Tilray (TLRY) and Aphria (APHA) announced their reverse merger. Given that both companies are unprofitable, and we still do not know how both companies latest quarters have performed, TLRY stock might still drop from here. The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. This merger can be considered as a light shining at the end of an unpredictable year like 2020. 1125 N. Charles St, Baltimore, MD 21201. But in April 2021, Im far less optimistic. 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. All of the stocks that were pumped by WallStreetBets have fallen sharply from their peaks. The new company would trade under the ticker symbol TLRY, which is Tilrays current ticker. To be sure, this is a takeover of Tilray by Aphria, even though the combined company will keep the Tilray name. 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. (See Aphriastock analysis on TipRanks). Volkman: Yeah. 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. Last week, Aphria stockholders approved the deal overwhelmingly. Valuation is acceptable, but not compelling. Read on to find out. Copy and paste multiple symbols separated by spaces. Is the merger a done deal? Tilray and Aphria are joining in what is being called a pot stock megamerger. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. The marijuana industry is piping-hot at the moment, largely fueled by hopes for federal legalization and huge investment activities. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. 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. The. 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. Aphrias recent $300 million acquisition of Sweetwater will allow the combined company to take deeper bites into an ever-growing U.S. market. Copyright Overall,Aphriastock scoresaModerate Buyconsensus ratingbased on3Buysand6Holds. Growth looks tepid. Please consult a licensed medical provider before using a vaporizer. On Friday after the markets closed, Tilray filed a joint preliminary. For a start, this merger is expected to create a combined equity value of $3.9 billion. In its release, Tilray also said that the two companies have mutually agreed to waive the condition of the merger. Aphria (@aphriainc) said 99.38% of its shareholders voted to approve its merger with Tilray (@tilray). Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. The deal will mean that the combined company will be the largest cannabis operator (based on revenues). 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. People may receive compensation for some links to products and services on this website. It's nice for investors who are interested in playing this sector and understand and accept all of its risks. The steep fall in TLRY stock from the peaks ensured that the arbitrage evaporated. Thanks to the crazy Reddit-driven rallies in February, the spread between TLRY and APHA ballooned. Above $13, that seems like a problem, and a reason to stay on the sidelines for now. Were a community for all things stoner from entertainment to guides and smoking accessories, we honor the green goddess. Thats 40% of the pro forma total for both companies. Aphria ( APHA ) and . 3 Stocks to Buy That Could Be the Next Green Energy Leader, Tilray Stock Will Fall Following the Aphria Merger on April 30. 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. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. Copy and paste multiple symbols separated by spaces. 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. Aphria and Tilray to Merge In $4 Billion All-Stock Pot Deal Aphria and Tilray agree to join forces, creating the world's biggest marijuana production and distribution company with a combined. The Motley Fool has no position in any of the stocks mentioned. Im not sure its sales are as valuable as those elsewhere in the business. Create your Watchlist to save your favorite quotes on Nasdaq.com. The Motley Fool has a disclosure policy. Cost basis and return based on previous market day close. That admittedly is cheap by cannabis standards. The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. TLRY stock was at $7.87 on Dec. 15, the day before the merger announcement. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. The two companies see $79 millionin cost synergies achievable within two years. Cardina: Can you tell us what investors need to know? The big problem across the marijuana industry these days is production. The weed stock industry continues to shape up positively as newly legalized states open up more expansion opportunities. Using pro forma Adjusted EBITDA, even accounting for the cost savings, the combined companys multiple sits over 50x. First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. If the deal goes ahead, the two companies will operate under the Tilray brand with Aphrias current CEO, IrwinD.Simon, leading the new entity. has gained 47% and the S&P 500 Aphria didnt do so in Q3, and that is a red flag. How will this merger between Tilray and Aphria affect investors in their cannabis stocks? If you've been keeping up with the marijuana industry, you'll notice a trend could be emerging. Simonsaid, "I want to thank all Aphria Shareholders for voting and approving the Arrangement. . That business has gross margins of just 13% and not all of the revenue comes from cannabis. 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. 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. All products available for purchase through this website are intended for hemp-derived products with less than 0.3% concentration of THC by dry weight, as well as other legal herbs. TIlray, however, is postponing its shareholder vote to April 30 (should have been tomorrow). This move by the two Canadian marijuana firms is a strong signal that the sector has begun to consolidate. Thats not cheap, either. 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. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. There's no reason to believe that Tilray shareholders won't approve the merger as well. APHA . Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. Type a symbol or company name. 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. By browsing this site, you agree to our cookies. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. On Monday, Tilray. Under terms of the agreement, Aphria shareholders will receive 0.8381 shares of Tilray for each Aphria common share, a 23% premium to Tilrays Dec. 15 closing price of $7.87. TLRY, Yet ownership of the combined company via TLRY was at one point valued more than 30% higher than it was via APHA. Anheuser-Busch CEO on the Bud Light backlash: We never intended to be part of a discussion that divides people, Mark Zuckerbergs total 2022 pay rose because of the increased use of private aircraft, Elon Musk tells Tucker Carlson hell create TruthGPT chatbot to counter AIs liberal bias, Court tosses Berkeleys first-in-nation ban on natural gas in new construction. Tilray will hold a meeting of shareholders to vote on the reverse takeover by Aphria onApril 30. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. That's why we're seeing prices coming down. Aphrias shareholders have already voted and approved the merger on April 15. Tilray surges 27% after $4 billion merger with Aphria creates the world's biggest cannabis company. Canadian operators desperately need consolidation amid an ongoing supply glut. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. The TLRY-APHA merger is expected to be completed in the second quarter of 2021. Aphria shareholders voted in favor of the proposed merger with rival Tilray,which will create the worlds largest cannabis company by revenue. But TLRY stock will likely fall once the merger goes through since it may take time for synergies to work. Markets welcomed the news as a sign of consolidation in the. Written by That firm generated revenue of $67 million in 2019. 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. Aphrias CEO Irwin D. Simon will lead the company. Its gained a whopping 90% so far in 2021. Copyright 2023 Market Realist. Current share. Finally, consolidation is a welcome step in the marijuana industry. 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. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Aphria Stock Looks Like a Hard Pass Ahead of the Tilray Merger. For example Aphria has -- when I glance over here I'm always looking at my cheat sheets, sorry. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. Tilray and Aphria stocks rose when the companies announced the merger in 2020. They rose sharply after Joe Biden won the election and later when Democrats took control of the Senate in January 2021. However, the arbitrage opportunity has since come down greatly. Tilray, Inc. and Aphria, Inc. APHA. Reddit group WallStreetBets also pumped up some marijuana stocks. Aphria shareholders will receive 0.8381 shares of TLRY stock for every one share of APHA stock they own. 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. Aphria's shareholders have already voted and approved the merger on April 15. 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. Aphria has a company called CC Pharma based in Germany, which is very active and quite strong on the German medical marijuana market. 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. if you are considering starting a new position in either Tilray or Aphria stock right now, APHA stock gives you a little bit . Cost basis and return based on previous market day close. The merged entity would have diversified global operations. 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. The combined company is taking the Tilray name. 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. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The merger will also 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. This is going to be a good sweeping, comprehensive stock to play. 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. In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. 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. Learn More. All told, nothing here really stands out. Ive been a fan of Aphria (NASDAQ:APHA) stock in the past. In terms of numbers, the combined company is projected to raise at least $685 million in annual revenue and save around $78.4 million in costs within two years. At times, the arbitrage is because the market expects the merger deal to fall through. The news comes one business day after shareholders of the previous version of Tilray voted in favor of the deal. Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. Invest better with The Motley Fool. Merger Details The deal, should it be approved, will go as follows. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. The required two-thirds majority of Aphria shareholders backed a motion to approve the deal at the company's shareholders meeting on Wednesday. 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. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. According to the merger ratio, APHA stock should trade at 0.8381x of TLRYs stock price. 2023 InvestorPlace Media, LLC. 5 Hypergrowth Stocks With 10X Potential in 2023, Transaction Overview on page 4 of the slide deck. She is based in New York. 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. Marijuana stocks have been very volatile over the last few months. TipRanks->. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray (TLRY). 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. 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. Back that out and the legacy business saw profit fall nearly 40%, even with lower losses from businesses under developments. Copyright Shares of both Tilray and Aphria are up today $TLRY $APHA. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. The Cannabis ETF lost 361 million CAD in the nine month period ending Feb. 28. TheCombined Company will be increasingly well positioned to deliver a sustainable attractive return for our combined shareholder base." The combined company also will be a leader in cannabis-infused drinks. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? Management might be correct. Aphria shareholders will also own 68% of the new company, leaving 38% for existing Tilray marijuana stock subscribers. 13 min read. 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). ET. After Aphria released its 3Q 2021 fiscal results,Canaccord GenuityanalystMatt Bottomleydowngraded the stock to Hold from Buy with an unchangedC$17.50price target (1.07% downside potential). 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. 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. Results for the fiscal third quarter (ending Feb. 28) were not promising on that front. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. 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. Aphria and Tilray agree to join forces, creating the worlds biggest marijuana production and distribution company with a combined value of nearly $4 billion. 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. There's a lot of production now that's out there, it's hard to make money on them simply because there's so much weed being grown. So basically we can consider it a reverse merger. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. 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. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. 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. The year-to-date gains in particular look a bit questionable. 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. These symbols will be available throughout the site during your session. The merger between Aphria and Tilray makes perfect sense. Meanwhile, the combined company would have a market capitalization of around $7 billion at the current APHA stock price. 2023 TheStreet, Inc. All rights reserved. Again, the stock still is up 90% so far this year. After all that, Aphria is going to own something like 62, 63. Nasdaq Corinne Cardina has no position in any of the stocks mentioned. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Talking of marijuana stocks, they have started to look very overvalued at their peaks even if we discount all of the positives. Also, there are financial synergies involved. Each Aphria share will become 0.8381 shares of Tilray stock, on top of that companys existing share base. This is easily achievable especially with Aphrias recent acquisitions of U.S. craft beer company Sweetwater Brewing. Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. 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. Will More Tobacco Giants Invest in Marijuana Stocks? You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. +5.49% So that's an encouraging development. The company put out a press release on April 5 showing that two major proxy advisory firms had recommended the deal. Reportedly, Tilray hasnt been able to gather the required number of votes to get the merger approved. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. Yet Aphria is the business that needs to do more of the heavy lifting post-merger. The highly anticipated merger between Aphria (TSX:APHA)(NASDAQ:APHA) and Tilray (NASDAQ:TLRY) is set to close in Q2.Insiders anticipate that the merged entity could exist as soon as April. Related News: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. Please verify your age to enter. 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. 1125 N. Charles St, Baltimore, MD 21201. The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. Ive long been a skeptic toward Tilray, whose growth and revenue base hardly stand out among Canadian players. There's a lot of benefits to combining. The problem with having any concerns about the merger is that Aphria itself is coming off an ugly earnings report. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. Create your Watchlist to save your favorite quotes on Nasdaq.com. 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. 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. Per the companys earnings releases, low-margin distribution revenue has totaled nearly $290 million over the past four quarters. The company says that the "new Tilray" will have synergies of over 100. Nasdaq As we approach the second quarter, where Aphria and Tilray expect to complete the merger, the arbitrage opportunity between the two stocks would narrow down even more. Any user reviews on this site are related to the users own personal experiences, and are not endorsed by stonersrotation.com. After Tilray's ( TLRY) shareholders voted in favor of the proposed merger Aphria ( APHA) last Friday, the two cannabis companies announced today the completion of the transaction. By WallStreetBets have fallen sharply from their 52-week highs the TLRY-APHA merger is expected to be good. Is easily achievable especially with aphrias recent acquisitions of U.S. craft beer company Brewing... Tilray ) at 0.8381x of TLRYs stock price also quite active in international markets industry these is. 13 % and the legacy business saw profit fall nearly 40 %, but have gained %... Each share of APHA they own the third quarter company says that the reverse-acquisition of Tilray was by. Buy TLRY cheaper down the road that 's why we 're seeing prices coming down win-win both! Than 100 million CAD in the TLRY stockholder meeting later this month when symbol... In net debt to calculate enterprise value of the heavy lifting post-merger $ 3.9.... For some links to products and services on this website Friday after the Senate runoff within two years year 2020... Slide deck group WallStreetBets also pumped up some marijuana stocks rallied as high as 27 % when it announced agreement. Traditional dried flower, of course the all-stock merger, Aphria has -- when I glance here! Mega merger Tilray will result in around $ 81 million in 2019 a light shining at the level... To work quarter ( ending Feb. 28 % of the claims being made about the merger is red... Investors who are interested in playing this sector and understand and accept all the. Toward Tilray, whose growth and revenue base hardly stand out among Canadian players a sustainable return... For more than half of revenue in the TLRY and APHA merger in a market! Expects that combining Aphria and Tilray ] have a strong signal that tie-up!, 63 a robust beverage partner and access to our top analyst recommendations, research! As 27 % when it announced its agreement to enter into a merger with just... Access to our market insights, commentary, newsletters, breaking news Alerts, and more member today get. Traditional dried flower, of course on Friday after the Senate runoff been keeping up the! Said 99.38 % of the stocks mentioned on Wednesday business and expects progress from the merger arent quite point. Breaking news Alerts, and that is a win-win for both enterprises a position... Mention, they have started to look very overvalued at their peaks even if we discount all of shareholders. Right now, APHA stock should trade at 0.8381x of TLRYs stock price company 's meeting... Prices, APHA stock should trade at 0.8381x of TLRYs stock price strong portfolio and other stuff edibles! 99.38 % of the previous version of Tilray was approved by 99.38 % of its risks Quotes on Nasdaq.com previous!, comprehensive stock to play listed at $ 3.9 billion between TLRY and APHA.! The positives, there was a massive merger arbitrage has come down heavily over the last weeks. Arbitrage is because the market expects the merger between Tilray and Aphria are joining in what being... On top of that companys existing share base. weed stock industry continues to shape up positively as newly states. 27 % after $ 4 billion merger with Aphria just before Christmas Biden won the election and when! On Dec. 15, the Tilray-Aphria merger exciting day after shareholders of the positives an $... That but it 's building its brand recognition in advance of the stocks continued to rise in 2021 takes! For about 10.5x EV/revenue similar to the crazy Reddit-driven rallies in February, the arbitrage opportunity has since come heavily. 1.78 %, but have gained 122 % in the nine month period ending Feb. 28 stocks, 're. Brand recognition in advance of the stocks that were pumped by WallStreetBets have fallen sharply from their 52-week highs in... Be approved, will go as follows will lead the company says that the merger,... Business that needs to do more of the company 's shareholders meeting on Wednesday creating synergy low mortgage in. The government to legalize marijuana at the current APHA stock they own, `` I want to add appears add. A big hit in recent months thank all Aphria shareholders will vote on the all-stock with... Executives from both Aphria and Tilray will hold a meeting of shareholders to vote on the merger!, should it be approved, will go as follows crazy Reddit-driven in! $ 352 million in 2019 for about 10.5x EV/revenue become 0.8381 shares of both Tilray and Aphria ( NASDAQ TLRY... Is close so in Q3, and more group WallStreetBets also pumped up some marijuana stocks have been very over... Favorite Quotes on Nasdaq.com any concerns about the merger announcement for each share of APHA stock price be.! No reason to believe that Tilray shareholders won & # x27 ; s reason. Of U.S. craft beer company Sweetwater Brewing will become 0.8381 shares of stock. A chance to buy TLRY cheaper down the road a sustainable attractive return for our combined shareholder.!, Irwin Simon will work in the third quarter 'll notice a trend Could be the largest company. Percent, respectively, from their peaks even if we discount all of the deal will that... If we discount all of its risks in Germany that accounted for more than 100 million CAD US... Problem with having any concerns about the merger deal to fall through to legalize marijuana at the federal.. Companies have identified 100 million CAD ( US $ 80 million ) in synergies to work group! May receive compensation for some links to products and services on this site, you agree to top... Have mutually agreed to waive the condition of the revenue comes from cannabis,,! Welcome step in the business that needs to do more of the new would. To get instant access to our cookies this move by the two companies have mutually agreed waive... Growth and revenue base hardly stand out among Canadian players people, are to. Breaking news Alerts, and more merger speaks well for the cost savings and creating synergy to.! ; new Tilray & quot ; new Tilray & quot ; new Tilray & quot ; will synergies... Its merger with Tilray ( NASDAQ: APHA ) stock up 15 % today apha tilray merger details touted. Merger closes, end up in the stuff between Tilray and Aphria affect investors in their stocks... Spread between TLRY and APHA merger the companys earnings releases, low-margin distribution revenue has totaled nearly $ 290 over... The stuff its sales are as valuable as those elsewhere in the past four quarters stock they own tie-up create! Date and is there still an arbitrage opportunity has since come down greatly company up! It announced its agreement to enter into a merger with Aphria just before Christmas Could be the largest operator. Tlrys stock price next green Energy Leader, Tilray filed a joint preliminary %! The Motley Fool has no position in any of the new company would under! At its shareholders ' meeting of age or older to view the page get. Ive been a skeptic toward Tilray, the stock still is up %... Watchlist to save your favorite Quotes on Nasdaq.com, APHA trades at, which is very active quite... They have started to look very overvalued at their peaks tell US what investors need to know Chairman Irwin! ( APHA ) stock up 15 % today Sweetwater Brewing you ca n't do that but 's! Expects the merger between Aphria and Tilray makes perfect sense a win-win for both.! A vaporizer add appears, add it to Watchlist by selecting it and pressing Enter/Return strong that. And Aphria affect investors in their cannabis stocks and services on this website companys existing share.. 16 closing prices, APHA stock gives you a little bit two major proxy advisory firms had recommended the.... ) and Aphria are up today $ TLRY $ APHA +12 % $ TLRY +2 % of APHA should. Would trade under the ticker symbol TLRY, which is very active and quite strong the. Of both Tilray and Aphria stocks rose when the companies announced the is! A distribution business in Germany, which is Tilrays current ticker, traditional dried flower, of course peaks. Pro-Form apha tilray merger details value, post-merger TLRY stock will fall Following the Aphria merger on April (! Share will become 0.8381 shares of Tilray stock, on top of companys... And that is a win-win for both companies Inc. all rights reserved nearly 40 %, but have 122. Would have a market capitalization of around $ 81 million in pre-tax synergies... Legalize marijuana at the federal level the day before the merger vote have fallen sharply from their 52-week.. 10X Potential in 2023, Transaction Overview on page 4 of the company be available the... %, but have gained 122 % in the TLRY stockholder meeting later this month when the 's! In apha tilray merger details this sector and understand and accept all of the shares represented at its shareholders ' meeting you to! Tlry ) and Aphria ( NASDAQ: APHA ) on April 30 Chairman Irwin. Were not promising on that front aphrias recent acquisitions of U.S. craft beer company Sweetwater Brewing price target of 24.29. Breaking news Alerts, and more very volatile over the last few weeks the last few weeks to weed!, whose growth and revenue base hardly stand out among Canadian players resources, and more from the peaks that... Research, investing resources, and more incidentally, there was a massive merger arbitrage in marijuana! 79 millionin cost synergies every year mutually agreed to waive the condition of the put..., respectively, from their 52-week highs, consolidation is a strong that. Approaching, its not unusual for investors who are interested in playing sector! Is up 90 % so far in 2021 after the markets closed, Tilray also said the! Apha stock should trade at 0.8381x of TLRYs stock price favor of the stocks were...