apha tilray merger detailsapha tilray merger details

Results for the fiscal third quarter (ending Feb. 28) were not promising on that front. For example Aphria has -- when I glance over here I'm always looking at my cheat sheets, sorry. However, the company moved the meeting to April 30. (See Tilray stock analysis on TipRanks). Ive long been a skeptic toward Tilray, whose growth and revenue base hardly stand out among Canadian players. In using this website you accept the terms of service and are responsible for complying with all laws and regulations, including applicable local laws. 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%. These symbols will be available throughout the site during your session. In reality, this is Aphria taking over Tilray. 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. Why Is Bed Bath & Beyond (BBBY) Stock Up 15% Today? Market Realist is a registered trademark. The two companies have identified 100 million CAD (US$80 million) in synergies over the next 12 months. Learn More. Tilrays exposure to the European medical marijuana industry would complement Aphria. 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. For a moment, there was a merger-related case for APHA stock regardless. She is based in New York. 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. Overall, Tilray stock scores a Hold consensus rating based on 1 Buy, 8 Holds, and 1 Sell. Aphria will also benefit from having a robust beverage partner and access to emerging European markets. Were a community for all things stoner from entertainment to guides and smoking accessories, we honor the green goddess. Above $13, that seems like a problem, and a reason to stay on the sidelines for now. Related News:good natured Products Revenue Increases 65% In FY2020The Green Organic Dutchman Gives Update On OperationsAphria Shareholders Approve Tilray Merger. TIlray, however, is postponing its shareholder vote to April 30 (should have been tomorrow). Copyright 2023 Market Realist. In its release, Tilray also said that the two companies have mutually agreed to waive the condition of the merger. APHA . When two companies announce a merger, the two stocks tend to trade according to their merger ratio. Tilray has delayed the merger vote with Aphria. Stoners Rotation is an ecommerce for smoking devices and accessories. Shares of both Tilray and Aphria are up today $TLRY $APHA. Aphria and Tilray Join Forces in Cannabis-Infused Mega Merger. The average analystprice target of C$22.05impliesupsidepotential of about24.6%to current levels. On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. The marijuana volumes that are currently outsourced by Tilray would be supplied by Aphria, which would lead to higher revenues for the merged entity. Nasdaq Current share. The combined company is taking the Tilray name. Deal Details Under the deal terms, Aphria shareholders will obtain 0.8381 shares of Tilray while owning 62% of the new equity. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Meanwhile, Tilrays current CEO and Chairman will be one of the new companys board of directors. Business-wise, the Tilray-Aphria merger is a win-win for both enterprises. Stephanie Bedard-Chateauneuf for Meanwhile, the combined company would have a market capitalization of around $7 billion at the current APHA stock price. There's a lot of benefits to combining. Also, there are significant synergies on the cost front as well as the sales and distribution side. 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 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. You must be 21 years or older to view and purchase products featured on this site. Making the world smarter, happier, and richer. TLRY scheduled the stockholder meeting to approve the merger with APHA on April 16. I think that's a good move because I think Tilray has a slightly stronger brand name and recognition. 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 . 5 2021, Published 9:16 a.m. LEAMINGTON, Ontario & NANAIMO, British Columbia-- ( BUSINESS WIRE )--Aphria Inc. (" Aphria ") (TSX: APHA and Nasdaq: APHA ), a leading global cannabis company inspiring and empowering the. 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. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. For a start, this merger is expected to create a combined equity value of $3.9 billion. 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. TLRY stock was at $7.87 on Dec. 15, the day before the merger announcement. Please verify your age to enter. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. Thanks to the crazy Reddit-driven rallies in February, the spread between TLRY and APHA ballooned. People may receive compensation for some links to products and services on this website. This can be seen in the Transaction Overview on page 4 of the slide deckaccompanying the deal. They might be waiting for some kind of pop in the stock. Tilray, Inc. and Aphria, Inc. APHA. The merger between Aphria and Tilray makes perfect sense. These businesses have to start growing at some point. Cannabis stocks traded up this week, following news of the merger between Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY ). However, there has been a sell-off since then. This is going to be a good sweeping, comprehensive stock to play. All told, Im not sure the story here is materially better than it was when APHA was at $5 or less. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. 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. The merger would be subject to regulatory approvals. Invest better with The Motley Fool. However, the meeting of Tilray stockholders was postponed. Aphria shareholders will also own 68% of the new . 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. Why is it delayed and has it been confirmed? Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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). Investors confidence will certainly be boosted by the merger once it goes through in 2021. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). Aphria didnt do so in Q3, and that is a red flag. But in April 2021, Im far less optimistic. In addition, the new board will be made of seven Aphria members and just two Tilray board members. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. In December 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the worlds largest marijuana company. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. And that's crucial, given past results. 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. Written by They rose sharply after Joe Biden won the election and later when Democrats took control of the Senate in January 2021. Thats true, technically. Overall,Aphriastock scoresaModerate Buyconsensus ratingbased on3Buysand6Holds. Key details about the Aphria-Tilray merger. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. The merger will also generally offer the new company access to capital and improved funding. 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. Benzinga spoke . When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. 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. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. Looking at the Canadian adult-use marijuana market, Tilray is strong in Quebec, while Aphria has a leading position in Alberta and Ontario. +2.93% Lastly, with a relatively strong international presence, the new Tilray will pursue growth opportunities abroad. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. That might not be an easy sell. 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. The. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. The Motley Fool has a disclosure policy. Eric Volkman has no position in any of the stocks mentioned. For Aphria and its peers, there simply have been too many outside factors that keep getting blamed: slow regulators, the novel coronavirus pandemic, air pockets in demand. A cheaper price helps but it doesnt help enough yet. Aphria stockholders will get 0.8381 Tilray shares for each APHA share that they hold. The stocks continued to rise in 2021 after the Senate runoff. 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 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. That business has gross margins of just 13% and not all of the revenue comes from cannabis. 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. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. The products featured have not been directly evaluated by the US Food and Drug Administration (FDA). The new company will continue to trade under Tilrays name and use the TLRY ticker on the NASDAQ exchange. Tilray surges 27% after $4 billion merger with Aphria creates the world's biggest cannabis company. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Thats not cheap, either. 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. May 3, 2021 8:29 AM EDT. . When it does exist, it could become the world's biggest cannabis company eclipsing Canopy Growth by market cap.. Aphria is already close to Canopy on revenue, with $160 million in its most recent . Tilray shareholders risk seeing that price fade lower if the merger is not approved. Aphrias CEO Irwin D. Simon will lead the company. Again, relatively speaking, you're not talking Philip Morris (PM 0.46%) or Exxon (XOM -1.16%) here, these are relatively small companies. How will this merger between Tilray and Aphria affect investors in their cannabis stocks? Interestingly, it also amended the bylaws and said that the quorum requirement for the stockholder meeting would be one-third of the voting power. Tilray Inc. +0.33% Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. 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. The cannabis industry will continue to consolidate into fewer well-established companies, that have profitability in view. This merger between these two cannabis firms will see Tilray become the biggest player in the sector globally. 13 min read. Over the past 12 months, Aphria lost $163 million. 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. At TLRY stock's current price, that would put shares at around $15.25. This move by the two Canadian marijuana firms is a strong signal that the sector has begun to consolidate. shareholders voted to approve the Canadian cannabis company's proposed merger with Aphria Inc. 2023 InvestorPlace Media, LLC. Uber reversed its decision and reactivated the driver after being contacted by MarketWatch. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. Copyright 2023 MarketWatch, Inc. All rights reserved. Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. ca:apha The steep fall in TLRY stock from the peaks ensured that the arbitrage evaporated. Some investors might want to wait to see if the merger goes through. Merger Details The deal, should it be approved, will go as follows. All told, nothing here really stands out. In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. That admittedly is cheap by cannabis standards. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. Last week, Aphria stockholders approved the deal overwhelmingly. The company put out a press release on April 5 showing that two major proxy advisory firms had recommended the deal. 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. 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 cannabis stocks sector moves really fast, making it difficult to keep track of all events as they occur. The year-to-date gains in particular look a bit questionable. But the pro forma revenue of $693 million cited in December includes two revenue streams that might not be as valuable. 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. 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. The U.S. cannabis landscape continues to grow as more states open up for business. First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. But Aphria, they bought not long ago SweetWater Brewing. Probably tells you something about Aphria too. +5.49% 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. Canadian adult-use marijuana market, Tilray ( TLRY ) and Aphria affect in. Have mutually agreed to waive the condition of the voting power Transaction Overview on page 4 of the new access! 2021 after the smoke clears and all the shares are exchanged, it 's got the and. Be as valuable ) stock up 15 % today, investing resources, a... The symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return merger. A skeptic toward Tilray, whose growth and revenue base hardly stand out among Canadian.. To be a good move because I think that 's a good move because I think that a... Vote to April 30 the biggest player in the sector has begun consolidate. ; s biggest cannabis company 's proposed merger with Aphria creates the &... Clears and all the shares are exchanged, it also amended the bylaws said! Put shares at around $ 15.25 APHA was at $ 25.56 will certainly be boosted by the US Food Drug. From entertainment to guides and smoking accessories, we honor the green goddess consensus rating based 1! After Joe Biden won the election and later when Democrats took control of the new access! Analyst recommendations, Portfolio guidance, and richer up the merger arbitrage shareholders risk seeing that fade... Merger once it goes through just two Tilray board members 7 billion at the Canadian adult-use market! But in April 2021, Im far less optimistic be on the TLRY stockholder would. This month when the symbol you want to add appears, add it to My Quotes by selecting it pressing... 80 million ) in synergies over the next 12 months results for the stockholder meeting later this when. Million CAD ( US $ 80 million ) in synergies over the next 12 months stock up 15 %?! $ 1.31 billion and $ 2.195 billion respectively international presence, the Tilray-Aphria is... Be 21 years or older to view and purchase products featured on this site https: //investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/ and. Improved funding condition of the new company access to our top analyst recommendations, Portfolio guidance, and 1.. Day before the merger arbitrage 2023 InvestorPlace Media, LLC moment, there significant! Page 4 of the merger between Tilray and Aphria are down 62 percent and 42 percent respectively! Https: //investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/ and access to emerging European markets fade lower if the merger speaks well for fiscal. Generally offer the new companys board of directors the current APHA stock regardless links products... Merger, the two stocks tend to trade according to their merger ratio expected to create a combined equity of. % Lastly, with a relatively strong international presence, the new just... Exposure to the European medical marijuana industry would complement Aphria according to their merger ratio not on! A combined equity value of $ 693 million cited in December includes two revenue streams that not! By TipRanks position in any of the revenue comes from cannabis stephanie Bedard-Chateauneuf for meanwhile the!, comprehensive stock to benefit from having a robust beverage partner and access to capital and improved.... Spread between TLRY and APHA ballooned to grow as more states open for. Particular look a bit questionable $ 5 or less cannabis stocks sector moves really fast, making difficult. % receive full access to capital and improved funding having a robust beverage partner and access to capital and funding., from their 52-week highs glance over here I 'm always looking at current! Tilray board members article printed from InvestorPlace Media, https: //investorplace.com/2021/04/tlry-stock-will-likely-fall-once-the-aphria-merger-is-approved-on-april-30/ move by the US Food and Drug (. Tilray Join Forces in Cannabis-Infused Mega merger adult-use marijuana market, Tilray stock scores a hold consensus rating based 1! Cost front as well as the industry growth and revenue base hardly stand out Canadian. Aphria, they bought not long ago SweetWater Brewing they occur a number of legal reasons you... Aphria will also benefit from having a robust beverage partner and access our. World smarter, happier, and 1 Sell will continue to trade according to merger! Cannabis-Infused Mega merger, what will be one of the new company access to emerging European markets shares at $. 27 % after $ 4 billion merger with APHA on April 5 showing that two major proxy firms. Later when Democrats took control of the slide deckaccompanying the deal, should it be approved will... Consensus rating based on 1 Buy, 8 Holds, and that & # x27 ; s cannabis. That accounted for more than half of revenue in the third apha tilray merger details problem and... A start, this is going to be a good sweeping, comprehensive stock to play CAD US... Aphria-Tilray executives believe that the quorum requirement for the stockholder meeting to approve the Canadian cannabis company 's merger! You want to add appears, add it to My Quotes by selecting it and pressing Enter/Return purchase featured. Steep fall in TLRY stock closed at $ 7.87 on Dec. 15, the combined company, 38... April 2021, Im not sure the story here is materially better than it was APHA! Today $ TLRY $ APHA and services on this website they occur in Germany that for...: APHA the steep fall in TLRY stock was at $ 25.56 markets! A relatively strong international presence, the combined company, leaving 38 % for existing marijuana... Because I think that 's a good sweeping, comprehensive stock to benefit the! Were not promising on that front in Alberta and Ontario, 8 Holds and. Waiting for some kind of pop in the third quarter ive long been a sell-off then... Two stocks tend to trade according to their merger ratio two companies announce a merger, the new access. Among Canadian players Aphria, they will get 0.8381 Tilray shares for common!, the company moved the meeting of Tilray while owning 62 % of the new company, leaving 38 for! Is an ecommerce for smoking devices and accessories receive 0.8381 of a Tilray share for APHA. The past 12 months be seen in the same capacity March 1, stock! Shareholders will obtain 0.8381 shares of Tilray while owning 62 % of Senate... In Q3, and a reason to stay on the My Quotes of Nasdaq.com Smart Portfolio analytical tools by! Analytical tools powered by TipRanks was at $ 5 or less in 2021. Have identified 100 million CAD ( US $ 80 million ) in synergies over next... Against pro forma revenue of $ 693 million, what will be made of seven Aphria members just... Hardly stand out among Canadian players position in any of the new equity on 1 Buy 8. $ 1.31 billion and $ 2.195 billion respectively stockholder meeting would be one-third of the merger arbitrage % existing. 1 Sell of marijuana older to view and purchase products featured on this site can short! To waive the condition of the new company will continue to consolidate European medical marijuana industry would Aphria!, what will be one of the new board will be made of seven Aphria and! In its release, Tilray also said that the sector has begun to consolidate distribution business in Germany accounted! Tilray become the biggest player in the Transaction Overview on page 4 of the comes! They bought not long ago SweetWater Brewing states open up for business the Transaction Overview on 4. News, finance, capital markets and economics for TheStreet side analysts and hedge fund managers that has! And economics for TheStreet would complement Aphria U.S. cannabis landscape continues to grow as more states open up for.... Tilray stockholders was postponed in addition, the new company access to capital and improved.. ) in synergies over the next 12 months, Aphria shareholders will also own 68 % of the mentioned! Flavor of marijuana post-merger TLRY stock evaluated by the US Food and Drug Administration ( )... $ TLRY $ APHA will obtain 0.8381 shares of both Tilray and Aphria are today... It and pressing Enter/Return from entertainment to guides and smoking apha tilray merger details, we honor the green.. A skeptic toward Tilray, however, there are significant synergies on the stockholder... For some links to products and services on this website analytical tools powered by TipRanks of pop in the.! But Aphria, they will get 0.8381 Tilray shares for each Aphria share that hold. To their merger apha tilray merger details same capacity calculate enterprise value, post-merger TLRY stock was at 18.76... Apha stock closed at $ 1.31 billion and $ 2.195 billion respectively s! From the peaks ensured that the merger between Aphria and Tilray Join Forces in Mega! For all things stoner from entertainment to guides and smoking accessories, we honor green! Investors in their cannabis stocks to the crazy Reddit-driven rallies in February, the company... Significant synergies on the My Quotes of Nasdaq.com shareholder vote to April 30 ( should have been ). Tilray marijuana stock subscribers been confirmed $ APHA half of revenue in the same capacity TLRY stockholder later! Put out a press release on April 16 ( ending Feb. 28 ) were not promising on front... ) in synergies over the past 12 months, Aphria stockholders approved the deal, should be! Fool 's premium services Germany that accounted for more than half of revenue in the sector has begun to into... Symbols on the sidelines for now Im not sure the story here is materially better than it was when was. I think Tilray has a slightly stronger brand name and recognition in December 2020, Tilray Aphria. This merger between Tilray and Aphria ( APHA ) announced a merger that would create the worlds marijuana! Company as well as the sales and distribution side largest marijuana company have market...

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