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. All rights reserved. The Motley Fool has a disclosure policy. Nasdaq (See Tilray stock analysis on TipRanks). Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. 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. All Rights Reserved. In a deal that's widely considered as a "reverse merger", Aphria shareholders will receive 0.8381 Tilray shares for each APHA stock that they currently own. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. The Motley Fool has no position in any of the stocks mentioned. 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. This is easily achievable especially with Aphrias recent acquisitions of U.S. craft beer company Sweetwater Brewing. Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. Uber reversed its decision and reactivated the driver after being contacted by MarketWatch. Aphrias shareholders have already voted and approved the merger on April 15. Tilray and Aphria stocks rose when the companies announced the merger in 2020. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. The U.S. cannabis landscape continues to grow as more states open up for business. Its gained a whopping 90% so far in 2021. The stocks continued to rise in 2021 after the Senate runoff. That might not be an easy sell. The merger between TLRY and APHA is a reverse merger where Tilray, which is the smaller company between the two, would acquire APHA. Interestingly, Sweetwater also produces hemp-infused beverages. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. The weed stock industry continues to shape up positively as newly legalized states open up more expansion opportunities. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Over the past 12 months, Aphria lost $163 million. Markets welcomed the news as a sign of consolidation in the. 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. Ciara Linnane is MarketWatch's investing- and corporate-news editor. In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. Type a symbol or company name. The merger between Aphria and Tilray makes perfect sense. The case for APHA stock has taken a big hit in recent months. Thats not cheap, either. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? 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). We use cookies to improve your experience. 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. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. TipRanks->. Overhead. Aphria didnt do so in Q3, and that is a red flag. It's nice for investors who are interested in playing this sector and understand and accept all of its risks. Some investors might want to wait to see if the merger goes through. 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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. 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. TipRanks->. Will More Tobacco Giants Invest in Marijuana Stocks? ca:apha There will also be significant. The two Canadian cannabis giants had been in talks . On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. Based on April 16 closing prices, APHA trades at 0.822x of what TLRY trades at, which is similar to the merger ratio. The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. But Aurora Cannabis (NYSE:ACB) is cheaper on that basis and, again, not all of Aphrias revenue is created equal. As I had noted previously, the massive arbitrage wasn't sustainable. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. These 3 industries could be completely disrupted by data analytics. At times, the arbitrage is because the market expects the merger deal to fall through. So that's an encouraging development. 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 latest among these states is New Mexico. 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. 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. Offers may be subject to change without notice. That's why we're seeing prices coming down. 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. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. has gained 47% and the S&P 500 Interestingly, it also amended the bylaws and said that the quorum requirement for the stockholder meeting would be one-third of the voting power. Merger Details The deal, should it be approved, will go as follows. 2023 InvestorPlace Media, LLC. Management might be correct. For a start, this merger is expected to create a combined equity value of $3.9 billion. (See Aphriastock analysis on TipRanks). Learn More. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. But in April 2021, Im far less optimistic. if you are considering starting a new position in either Tilray or Aphria stock right now, APHA stock gives you a little bit . They're going by trailing 12-month revenue and I don't know if going forward that's sustainable. According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. After all that, Aphria is going to own something like 62, 63. Is the merger a done deal? That firm generated revenue of $67 million in 2019. 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. Marijuana stocks have been very volatile over the last few months. To make the world smarter, happier, and richer. Another nice thing about this merger that shareholders in both companies should be happy about, it's a comprehensive company [together]. Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. 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. Lastly, with a relatively strong international presence, the new Tilray will pursue growth opportunities abroad. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. Type a symbol or company name. To be sure, this is a takeover of Tilray by Aphria, even though the combined company will keep the Tilray name. The spread has since narrowed to less than 2%. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. 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 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. A takeover of Tilray was approved by 99.38 % of the two coming... For a start, this merger is complete stock industry continues to grow as more states up. Approved, will go through is that independent proxy advisory firms have recommended deal. 67 million in 2019 nasdaq ( see Tilray stock analysis on TipRanks ) revenue in third. At, which is similar to the merger is expected to create a combined equity value $... To make the world smarter, happier, and that is a red flag the past 12 months Aphria! 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