More important for potentially buying Aphria stock, though, are the specific terms of the merger. Aphria shareholders will receive 0.8381 shares of Tilray for each of their Aphria shares. Tilray shareholders will keep the current shares. Currently, Aphria is trading at close to 0.73 times Tilray's share price.
Full Answer
What happened to Aphria shares?
Aphria has stopped trading and all Aphria shares are now converted to Tilray shares. The merger had got delayed due to the delay in approval from Tilray shareholders.
Should you buy Aphria stock before or after the Tilray merger?
So, buying Aphria now and shorting Tilray is a good short-term bet for making a profit when the merger completes. Shorting Tilray shares allows investors to borrow and sell the stock now, and then buy the stock later to return it to the lender.
Can Aphria make its mark in the European medical cannabis market?
Aphria has a good hold in the European medical cannabis market, thanks to its German subsidiary, CC Pharma. It earns around 98% of its distribution revenue from it. Coupled with Tilray's operations in Portugal, the new entity can easily make its mark in Europe.
Can Aphria's acquisition of Sweetwater Brewing give it a run at canopy?
Cannabis beverages are one kind of cannabis derivative -- others include vapes, chocolates, edibles, and concentrates -- which Canada legalized in October 2019. But with the acquisition of American craft beer maker SweetWater Brewing, Aphria can give Canopy a run for its money in this segment, while also growing its revenue.
What happens to my Aphria stocks after the merger?
The company will continue to trade on the Nasdaq Global Select Exchange under the symbol "TLRY" and will commence trading on the Toronto Stock Exchange under the symbol "TLRY" on May 5. Under the terms, Aphria shareholders receive 0.8381 of a Tilray share for each common share of Aphria.
Should I hold my Aphria stock?
Aphria Inc(APHA-T) Rating A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
What does Aphria merger mean for shareholders?
The transaction is effectively a takeover of Tilray by Aphria, with Aphria shareholders receiving 0.8381 of a share of Tilray common stock for each of their Aphria shares. Aphria shareholders will therefore own 62 per cent of the new company, while Tilray stockholders will own the remaining 38 per cent.
Can I buy Aphria stock?
(APHA) Stock Summary: The basic steps to invest in Aphria are the same you can follow to buy any stock. You can buy stock in 3 simple steps, but each requires multiple decisions as you determine your needs and limits.
Is Aphria a good buy now?
Currently, Aphria is trading at close to 0.73 times Tilray's share price. The single most compelling reason to buy Aphria stock right now is that this ratio absolutely must increase to the 0.8381 ratio included in the merger agreement.
Should I sell my Tilray stock?
(TLRY-Q) Rating. Stockchase rating for Tilray Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
Did Tilray buy out Aphria?
Tilray-Aphria merger closes, expanded company to control biggest share of Canadian pot market. Canadian cannabis companies Tilray Inc. and Aphria Inc. say their merger deal has now closed after receiving approval from shareholders of both companies.
Did Aphria get delisted?
Aphria's (NASDAQ:APHA) last trading day is today after it complete its deal with Tilray (NASDAQ:TLRY). The effective date for suspension of the shares is Monday, according to a Nasdaq delisting notice.
Is apha merger with Tilray?
Tilray Inc. TLRY, -2.36% 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, paving the way for the creation of the world's biggest cannabis company measured by revenue.
How much did Tilray buy Aphria for?
Back in December, Tilray entered into a definitive agreement to acquire Aphria in a deal with a listed market valuation of ~$4 billion, at the time. Aphria shareholders will receive 0.8381 shares of Tilray and end up controlling 62% of the company.
Why is Tilray trading so low?
Shares of Tilray were down after the company reported a wider-than-expected net loss in the fourth quarter despite a beat in revenue.
Why is APHA going down?
Aphria stock plunged Monday after the Canadian cannabis firm missed expectations for third-quarter sales and its net loss widened. Also falling were shares of Canadian peer Tilray , which plans to merge with Aphria.
How much of Tilray does Aphria own?
But the most important point to note is that each Aphria shareholder will get 0.8381 shares of Tilray.
What is the aphria-tilray merger?
Currently, investors are keen to cash in on the Aphria-Tilray merger arbitrage opportunity. A merger arbitrage occurs when the stock price of the target company trades below the proposed acquisition price, mostly because of uncertainty around whether the deal will succeed or fall through. This price difference allows investors to buy the stock ...
What is shorting tilray stock?
Shorting Tilray shares allows investors to borrow and sell the stock now, and then buy the stock later to return it to the lender. In this way, the investor is essentially betting that the stock price will sink, allowing them to make a profit from the difference between the buying price and the selling price.
How much is the cannabis market worth in 2027?
The global cannabis market is expected to grow at a compound annual growth rate (CAGR) of around 17.8% to be worth $65.1 billion by 2027. Knowing this, I think it's smart to invest in a growing pot stock and hold it for the long term in order to reap all the possible benefits.
What happens if a merger doesn't go through?
But there are also risks to an arbitrage -- like if the merger doesn't go through, the share price will drop. Additionally, if more people opt to take advantage of the arbitrage, the opportunity might vanish altogether. However, there is another way to make money out of this merger deal (if you have the patience).
Is Aphria a long game?
Aphria and Tilray are playing the long game. No doubt, the arbitrage opportunity creates a short-term advantage until the merger closes. But stock investments are almost always fruitful when played out for the long run. Cannabis is an evolving, quickly growing industry.
How much is Aphria stock worth in 2020?
Still, Aphria investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Aphria stock bought on April 13, 2020, would be worth about $4,336 today. Looking ahead, analysts are expecting more upside for Aphria in the next 12 months.
What is the stock price of Aphria in 2021?
Aphria In 2021, Beyond: The stock ultimately peaked at $32.29 in February 2021 before pulling back to around $13.17. Traders may be taking profits in the stock after its huge run in the past year.
What company did Aphria merge with?
Click here to get my trades! However, the biggest news by far in the past year came in December when Aphria announced a merger with Tilray Inc (NASDAQ: TLRY) in a deal that would create the world’s largest international cannabis company by revenue.
How much is Aphria losing in 2020?
In 2019 Aphria reported a $16.5 million net loss on $237.1 million in revenue. In 2020, those numbers jumped to a net loss of $84.6 million on $542.3 million in revenue. At the beginning of 2020, Aphria shares were trading at around $5.30.
Is Aphria merging with Tilray?
Aphria (A PHA) 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 start showing up in its earnings.
Is the combined company too far off from profitability?
Truth be told, the combined companies are not too far off from profitability. And they have a solid book value with a very large asset base to work from, so this is one area that I can see the trends and fundamentals moving towards profitability:
A Troubled Past
- Before we get into the company overview, let’s discuss its stock risks. In 2018, it overinvested in the acquisition of LATAM Holdings. An independent investigationconcluded that the deal was a way for board members to get more money. The conflict of interest led Aphria’s former CEO, Vic Neufeld, to resign. New leadership is set to get the company back on the right track. As a result …
Aphria Brands
- Aphria Inc. (NASDAQ:APHA) operates a range of weed brands catering to value, core, premium, and premium+ consumers. Its flower, pre-roll, and vape products have shown sales growth quarter-over-quarter. Its products include flower, pre-rolls, concentrates, vapes, tinctures, capsules, topicals, gummies, and beverages.
Strategy
- Aphria has a clear strategy for growing its market share across Canada. It’s created a strong portfolio of curated brands and segments. It's built a large distribution network in every province. Aphria has gained this through partnerships with Shoppers Drug Mart and Great Northern Distributors. Aphria’s state-of-the-art facilities are located in Leamington, ON, Duncan, BC, and Br…
Financials
- Aphria completed its fourth-quarter earnings for the fiscal year 2020 at the end of May. Investors weren’t too happy with the results. The company reported a net loss of 98.8 million Canadian dollars. Compare that to its net income of 15 million in the previous year’s quarter. As a result, some investors sold their shares, but was it too premature?
Is Aphria Stock A Buy?
- Cannabis 2.0 in Canada brought edibles and concentrates to the market. Aphria has set itself up to be a leader in the derivative market. It's currently the number one seller in the vape segment in Ontario, Canada’s biggest province. It plans to launch more than 25 new vape products in the fiscal year 2021. That's sure to win it vape fans across Canada. Aphria has earned the highest gr…