For one, this will make. These symbols will be available throughout the site during your session. Also, there are financial synergies involved. Aphria shareholders voted in favor of the proposed merger with rival Tilray,which will create the worlds largest cannabis company by revenue. Its gained a whopping 90% so far in 2021. Copyright 2023 Market Realist. The most notable is the argument that the tie-up will create the worlds largest cannabis company by revenue. Aphrias pending merger with Tilray (NASDAQ:TLRY) admittedly makes some sense. Stoners Rotation is an ecommerce for smoking devices and accessories. Copy and paste multiple symbols separated by spaces. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. Also, in SPACs, there can be significant arbitrage between the common stock and the warrants. 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. Benzinga spoke . The problem with having any concerns about the merger is that Aphria itself is coming off an ugly earnings report. Tilray Inc. have merged after months of negotiations, creating a company with a combined market cap of $3.3 billion. On Monday, Tilray's shares closed 7.2% lower, against the 0.3% rise of the S&P 500 index. This means be patient and look to average costs into TLRY stock. 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. Cardina: Can you tell us what investors need to know? 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. Any user reviews on this site are related to the users own personal experiences, and are not endorsed by stonersrotation.com. 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. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? 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). Which is not exactly a cannabis-infused beer because it's sold in the States. The Tilray and Aphria merger has received regulatory approvals and APHA stockholders have also confirmed the merger. Over the past 12 months, Aphria lost $163 million. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. That firm generated revenue of $67 million in 2019. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Moreover, some might want to see if the proposed synergies actually do pan out, which could take some time. The delayed merger vote and the new quorum requirements have raised concerns. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. APHA . Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. 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. Growth looks tepid. Balsky is bullish on the business and expects progress from the government to legalize marijuana at the federal level. Create your Watchlist to save your favorite quotes on Nasdaq.com. 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. 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. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Markets welcomed the news as a sign of consolidation in the marijuana industry where most players are making losses even on the EBITDA level. On Monday, Tilray announced that its "business combination" with peer Aphria (APHA) had been completed, and the two are now one. Merger Details The deal, should it be approved, will go as follows. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. 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. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Interestingly, it also amended the bylaws and said that the quorum requirement for the stockholder meeting would be one-third of the voting power. 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 average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. 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. Probably tells you something about Aphria too. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. Also, there are significant synergies on the cost front as well as the sales and distribution side. 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. But the point is that folded into this broader company, that's going to [help] make it quite full-blown and comprehensive and a sweeping company to own. For Tilray, it will provide a much-needed boost to their balance sheet after a rocky year. Copyright 2023 MarketWatch, Inc. All rights reserved. Tilray (NASDAQ:TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ:APHA) on April 30. 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. There will be a chance to buy TLRY cheaper down the road. The pro-form enterprise value of the company is listed at $3.9 billion. Type a symbol or company name. However, for the merger to be confirmed, it would have to be approved by TLRY stockholders. Nasdaq Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. Tilray and Aphria are joining in what is being called a pot stock megamerger. The required two-thirds majority of Aphria shareholders backed a motion to approve the deal at the company's shareholders meeting on Wednesday. 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. What's Next for Tilray Now That Its Merger With Aphria Is Complete? Marijuana stocks and cannabis legalization have always had their destinies interwoven. Lastly, with a relatively strong international presence, the new Tilray will pursue growth opportunities abroad. Aphria shareholders will receive 0.8381 shares of TLRY stock for every one share of APHA stock they own. But even after that sell-off, and a 41% fall from last months highs, this is not a value play. Previously, the companys bylaws warranted that the majority of the stockholders had to be present to convene the meeting. Copyright 2023 Market Realist. All rights reserved. Aphria (APHA) - Get Free Reportand Tilray (TLRY) - Get Free Report, two giants in the cannabis industry, on Wednesday revealed plans to join forces in an all-stock deal that will create the worlds biggest marijuana production and distribution company. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Related News:good natured Products Revenue Increases 65% In FY2020The Green Organic Dutchman Gives Update On OperationsAphria Shareholders Approve Tilray Merger. 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 . shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Stephanie Bedard-Chateauneuf for APHA stockholders would own the majority 62 percent stake in the merged entity, while existing TLRY stockholders would hold the remaining stake. 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. This is going to be a good sweeping, comprehensive stock to play. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. So it's building its brand recognition in advance of the company being actually able to put weed in the stuff. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. That equals 632 million in losses (U.S. $505 million). I should mention, they're also quite active in international markets. Results for the fiscal third quarter (ending Feb. 28) were not promising on that front. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. There's no reason to believe that Tilray shareholders won't approve the merger as well. 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. Market Realist is a registered trademark. Thats true, technically. Read on to find out. SPX, Aphria stockholders will get 0.8381 Tilray shares for each APHA share that they hold. You must be 21 years or older to view and purchase products featured on this site. 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). 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. Even assuming pandemic impacts led to weaker performance in 2020, Sweetwater still accounts for a high-single-digit percentage of pro forma revenue. 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). Current share. Tilray's merger with Aphria, announced in December and set to close in Q2, will create the largest cannabis company. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. 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. Interestingly, Sweetwater also produces hemp-infused beverages. has gained 47% and the S&P 500 The combined U.S. operations will focus on Sweetwater and Manitoba Harvest, which makes branded hemp and CBD products. However, the arbitrage opportunity has since come down greatly. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. No wonder both the stocks rallied after the merger was announced. Finally, consolidation is a welcome step in the marijuana industry. Stephanie Bedard-Chateauneuf for Learn More. Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. That move was also expected to make it easier for the deal to be approved. (See Aphriastock analysis on TipRanks). Under the terms of the agreement, Aphria will become a wholly-owned subsidiary of Tilray. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. Since then it has more than doubled to $18.36 as of April 29. The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. Reportedly, Tilray hasnt been able to gather the required number of votes to get the merger approved. SweetWater Brewing makes a product called 420 Strain, 420 of course being not-so-secret code for marijuana. All Rights Reserved. The cost savings will also lead to considerable improvements to the bottom line for the new company. 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. Notable is the argument that the quorum requirement for the combined company as as... This means be patient and look to average costs into TLRY stock for one. Stock Up 15 % Today as a sign of consolidation in the stuff the required number votes. 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