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. 1125 N. Charles St, Baltimore, MD 21201. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. The two companies see $79 millionin cost synergies achievable within two years. Making the world smarter, happier, and richer. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. 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. On Monday, Tilray. The average analyst price target of $24.29 implies an upside potential of about 33% from current levels. On Friday after the markets closed, Tilray filed a joint preliminary. For one, this will make the combined company the largest cannabis company by revenue, as described on page 5 of their investor presentation. Tilrays exposure to the European medical marijuana industry would complement Aphria. Copy and paste multiple symbols separated by spaces. But even after that sell-off, and a 41% fall from last months highs, this is not a value play. Tilray shares closed Friday down 1.78%, but have gained 122% in the year to date. They rose sharply after Joe Biden won the election and later when Democrats took control of the Senate in January 2021. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. 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). The deal is expected to close in the second quarter. 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. If that doesnt happen, as is often the case, more jittery and short-term oriented shareholders could move out. What's Next for Tilray Now That Its Merger With Aphria Is Complete? 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. Combined, [Aphria and Tilray] have a strong portfolio and other stuff, edibles, traditional dried flower, of course. In addition, the new board will be made of seven Aphria members and just two Tilray board members. 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. The. For a moment, there was a merger-related case for APHA stock regardless. Moreover, vaporizing does not necessarily eliminate toxins. They come in the context of whats looked like negative news flow over the past five months. 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. 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). Another indicator that the deal will go through is that independent proxy advisory firms have recommended the deal to institutional shareholders. The news comes one business day after shareholders of the previous version of Tilray voted in favor of the deal. Once the merger is complete, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. 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 . Valuation is acceptable, but not compelling. These businesses have to start growing at some point. Overhead. For a number of legal reasons, you can't do that but it's got the aroma and the flavor of marijuana. December saw Tilray and Aphria announce that they will merge, creating the world's biggest cannabis company by revenue in the process. 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. Under the terms of the agreement, Aphria will become a wholly-owned subsidiary of Tilray. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 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. Uber reversed its decision and reactivated the driver after being contacted by MarketWatch. It's worth taking a look at. These 3 industries could be completely disrupted by data analytics. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria. In reality, this is Aphria taking over Tilray. Corey Goldman covers spot news, finance, capital markets and economics for TheStreet. 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 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 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. There's a lot of benefits to combining. Markets welcomed the news as a sign of consolidation in the. All rights reserved. Aphria shareholders will also own 68% of the new company, leaving 38% for existing Tilray marijuana stock subscribers. 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. *Average returns of all recommendations since inception. Current share. Again, the stock still is up 90% so far this year. In its release, Tilray also said that the two companies have mutually agreed to waive the condition of the merger. Back that out and the legacy business saw profit fall nearly 40%, even with lower losses from businesses under developments. Aphria shareholders voted in favor of the proposed merger with rival Tilray, which will create the world's largest cannabis company by revenue. Copyright 2023 Market Realist. It also expects that combining Aphria and Tilray will result in around $81 million in pre-tax cost synergies every year. As for APHA stockholders, they will get 0.8381 Tilray shares for each Aphria share that they hold. 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. has gained 47% and the S&P 500 I have also written about the potential merger synergies with both companies. 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. quotes delayed at least 15 minutes, all others at least 20 minutes. Offers may be subject to change without notice. A driver spent $180,000 to start an Uber Black business. That equals 632 million in losses (U.S. $505 million). 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. 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. 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). In December 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the worlds largest marijuana company. 3 Stocks to Buy That Could Be the Next Green Energy Leader, Aphria Stock Looks Like a Hard Pass Ahead of the Tilray Merger. Check your inbox or spam folder to confirm your subscription. So basically we can consider it a reverse merger. 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. Net cannabis revenue plunged by nearly one-fourth quarter-over-quarter. First of all, economies of scale. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Take Charge of Your Money During our April Sale! Through Tuesdays close, Tilray shares have fallen 54% in 2020, while Aphrias have risen 56%. Tilray Marijuana stocks rallied as high as 27% when it announced its agreement to enter into a merger with Aphria just before Christmas. Results for the fiscal third quarter (ending Feb. 28) were not promising on that front. To mark the new phase of its existence, Tilray has also changed its corporate logo. Nasdaq The U.S. cannabis landscape continues to grow as more states open up for business. Earnings already have weighed on APHA stock, which dropped 14% that day and now is off 19% from pre-earnings levels. Aphria has a company called CC Pharma based in Germany, which is very active and quite strong on the German medical marijuana market. Against pro forma revenue of $693 million, what will be Tilray looks cheap by sector standards. Making the world smarter, happier, and richer. In the middle of February, APHA stock was trading at around 0.41x what TLRY was trading at. Moreover, some might want to see if the proposed synergies actually do pan out, which could take some time. Aphria didnt do so in Q3, and that is a red flag. For a start, this merger is expected to create a combined equity value of $3.9 billion. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. 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. 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. On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. Invest better with The Motley Fool. You must be 21 years of age or older to view the page. Marijuana stocks and cannabis legalization have always had their destinies interwoven. Aphria said that the reverse-acquisition of Tilray was approved by 99.38% of the shares represented at its shareholders' meeting. You can go short on Tilray stock and long on Aphria stock to benefit from the merger arbitrage. Aphria ( APHA ) and . The combination of solid growth, experienced management, and profitability (if on an adjusted basis) made APHA stock stand out. You can still play the arbitrage in the Tilray-Aphria merger even if it isn't as juicy as it was two weeks ago. The problem with having any concerns about the merger is that Aphria itself is coming off an ugly earnings report. So that's an encouraging development. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. They project that the combined company will command a 20% market share via their subsidiaries and brands. 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. If you are looking at a better marijuana stock to buy between TLRY and APHA, choose APHA before the merger based on the merger arbitrage. As such, these devices are not designed to cure or treat disease. Copyright lost 361 million CAD in the nine month period ending Feb. 28. 13 min read. 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. This will help reduce their combined losses. Aphrias shareholders have already voted and approved the merger on April 15. Benzinga spoke . The big problem across the marijuana industry these days is production. Will More Tobacco Giants Invest in Marijuana Stocks? Tilray Inc. On Monday, Tilray announced that its "business combination" with peer Aphria (APHA) had been completed, and the two are now one. As these markets begin to re-open, Tilray is poised to strike and transform the industry with our highly scalable operational footprint, a curated portfolio of diverse medical and adult-use cannabis brands and products, a multi-continent distribution network, and a robust capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders.". 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. This is going to be a good sweeping, comprehensive stock to play. As of Wednesday, 30th December 2020, market capitalization for Tilray and Aphria was at $1.31 billion and $2.195 billion respectively. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. Last week, Aphria stockholders approved the deal overwhelmingly. Locked in or trapped? 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. 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 . As I noted previously, as a standalone company, APHA looks better placed compared to TLRY given its better financials and lower comparative valuation. Hopefully, the merger will find more than 100 million CAD in synergies to make this company profitable. Is Aphria taking over Tilray profit fall nearly 40 %, even lower... Doesnt happen, as is often the case, more jittery and short-term oriented shareholders could move out two! Case for APHA stockholders, they will get 0.8381 Tilray shares closed Friday down 1.78,! 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