Tilray Inc. Now, all eyes will be on the TLRY stockholder meeting later this month when the company takes up the merger vote. Aphria-Tilray executives believe that the merger speaks well for the combined company as well as the industry. TLRY stock was at $7.87 on Dec. 15, the day before the merger announcement. Volkman: Yeah. 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. A driver spent $180,000 to start an Uber Black business. 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. Regardless, the merger should save a lot of money. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. The two companies see $79 millionin cost synergies achievable within two years. 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. Type a symbol or company name. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. On Monday, Tilray's shares closed 7.2% lower, against the 0.3% rise of the S&P 500 index. Through Tuesdays close, Tilray shares have fallen 54% in 2020, while Aphrias have risen 56%. Incidentally, there was a massive merger arbitrage in the TLRY and APHA merger. Written by Aphria shareholders will receive 0.8381 shares of TLRY stock for every one share of APHA stock they own. 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 (APHA) and Tilray (NASDAQ:TLRY) are merging.Combined, the two companies are likely to save money - the main focus of the press releases - but it will take some time until those savings . Whats happening with the Tilray and Aphria merger? According to executives from both Aphria and Tilray, the merger is targeted at cost savings and creating synergy. Mar. Since th Canopy Growth (NASDAQ: CGC), a top weed stock and leading cannabis producer and distributor has just added a new name to its growing Cannabis stocks have been experiencing an ecstatic high since the final quarter of last year. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. The cost savings will also lead to considerable improvements to the bottom line for the new company. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. First, Aphria has a distribution business in Germany that accounted for more than half of revenue in the third quarter. After all, there is always the possibility that it could fall through. 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Aphria shareholders will also own 68% of the new . In terms of leadership for the combined company, Aphrias current CEO and Chairman, Irwin Simon will work in the same capacity. Shares of both Tilray and Aphria are up today $TLRY $APHA. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. Net cannabis revenue plunged by nearly one-fourth quarter-over-quarter. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. As I had noted previously, the massive arbitrage wasn't sustainable. 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. Then the company deactivated his account. 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. Part of the cause of the sell-off is that APHA got some draft from the Reddit rallies, even if it didnt move as high as did Tilray. 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). Making the world smarter, happier, and richer. Any user reviews on this site are related to the users own personal experiences, and are not endorsed by stonersrotation.com. Second, Aphria also now owns Sweetwater Brewing. On Friday after the markets closed, Tilray filed a joint preliminary. Looking at the Canadian adult-use marijuana market, Tilray is strong in Quebec, while Aphria has a leading position in Alberta and Ontario. 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. Tilray would acquire Aphria and the new entity would trade under the "TLRY . 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. No wonder both the stocks rallied after the merger was announced. 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%. 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. Aphria shares closed down 0.5% and are also up 122% year-to-date. THCX, On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Eric Volkman has no position in any of the stocks mentioned. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Combined, Tilray and Aphria will make $874 million in revenue compared to $842 million by runner-up Curaleaf (OTCMKTS:CURLF). Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Thats true, technically. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. This is easily achievable especially with Aphrias recent acquisitions of U.S. craft beer company Sweetwater Brewing. Say hello to what has become, at a stroke, a dramatically larger marijuana company: the new version of Tilray (TLRY). Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! Stoners Rotation is an ecommerce for smoking devices and accessories. A cheaper price helps but it doesnt help enough yet. 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. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-hard-pass-ahead-tilray-merger/. For a moment, there was a merger-related case for APHA stock regardless. 2023 InvestorPlace Media, LLC. According to the merger ratio, APHA stock should trade at 0.8381x of TLRYs stock price. Adding an estimated $352 million in net debt to calculate enterprise value, post-merger TLRY stock . It's worth taking a look at. These symbols will be available throughout the site during your session. Tilray will hold a meeting of shareholders to vote on the reverse takeover by Aphria onApril 30. Thats 40% of the pro forma total for both companies. Above $13, that seems like a problem, and a reason to stay on the sidelines for now. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. For Tilray, it will provide a much-needed boost to their balance sheet after a rocky year. +0.33% Nasdaq 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. At TLRY stock's current price, that would put shares at around $15.25. Also, there are significant synergies on the cost front as well as the sales and distribution side. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. 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. Growth looks tepid. Markets welcomed the news as a sign of consolidation in the. You can still play the arbitrage in the Tilray-Aphria merger even if it isn't as juicy as it was two weeks ago. Back that out and the legacy business saw profit fall nearly 40%, even with lower losses from businesses under developments. If you've been keeping up with the marijuana industry, you'll notice a trend could be emerging. 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. Investors found the prospect of a Tilray-Aphria merger exciting. Making the world smarter, happier, and richer. 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. Corinne Cardina: Let's talk about a big splashy deal. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. For a start, this merger is expected to create a combined equity value of $3.9 billion. 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. The products featured have not been directly evaluated by the US Food and Drug Administration (FDA). quotes delayed at least 15 minutes, all others at least 20 minutes. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. 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 . LEAMINGTON, Ontario & NANAIMO, British Columbia-- ( BUSINESS WIRE )--Aphria Inc. (" Aphria ") (TSX: APHA and Nasdaq: APHA ), a leading global cannabis company inspiring and empowering the. 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. Copyright In addition, the new board will be made of seven Aphria members and just two Tilray board members. Once the merger is complete, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. All told, nothing here really stands out. SweetWater Brewing makes a product called 420 Strain, 420 of course being not-so-secret code for marijuana. 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. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. Per the companys earnings releases, low-margin distribution revenue has totaled nearly $290 million over the past four quarters. On Monday, Tilray. The steep fall in TLRY stock from the peaks ensured that the arbitrage evaporated. 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. 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. 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. 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. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. TLRY was trading at almost twice what it should have based on the merger ratio. Meanwhile, the combined company would have a market capitalization of around $7 billion at the current APHA stock price. Deal Details Under the deal terms, Aphria shareholders will obtain 0.8381 shares of Tilray while owning 62% of the new equity. Canadian operators desperately need consolidation amid an ongoing supply glut. Create your Watchlist to save your favorite quotes on Nasdaq.com. TLRY, But Aurora Cannabis (NYSE:ACB) is cheaper on that basis and, again, not all of Aphrias revenue is created equal. Whats the TLRY-APHA merger date and is there still an arbitrage opportunity available before the merger is complete? Aphria has a company called CC Pharma based in Germany, which is very active and quite strong on the German medical marijuana market. However, since then, both TLRY and APHA have fallen sharply amid the sell-off in marijuana stocks. On March 1, APHA stock closed at $18.76, while TLRY stock closed at $25.56. Simply click here to get the full story now. Then and now, Aphria's (now Tilray's) leadership has touted many benefits of the two companies coming together. That business has gross margins of just 13% and not all of the revenue comes from cannabis. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 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