The company, which has a 12.1-per-cent market share in Canada, attributed its poor performance last quarter to economic shutdowns at home and in Germany, where it has a drug importation company If you believe the merger will go through successfully, it’s possible that you can profit from going long APHA while shorting TLRY as the two equity units reach a valuation that is commensurate with the terms of the merger. >>> READ MORE, world’s largest global cannabis company by sales, spearheaded multiple groundbreaking events, abolish the death penalty for 32 offenses, including drug charges, account for about $30 billion or 73% of this sector, Louis Navellier and the InvestorPlace Research Staff, This Discount on Alibaba Stock Won’t Last Forever, Matt McCall and the InvestorPlace Research Staff. While those are advantages, they're not likely to make Canopy Growth's stock five times more valuable. After the merger, the combined entity will generate $874 million in sales, making it the largest Canadian cannabis company. Summary. That’s why the pending merger of Aphria and Tilray (NASDAQ:TLRY) is intriguing. Aphria, Tilray To Form Cannabis Giant Amid U.S. In 2020, one of the most significant developments in the legal cannabis sector was the announced merger of leading Canadian Licensed Producers (LPs) Aphria Inc. (APHA.TO) (APHA) and Tilray, Inc. (TLRY). The merger arbitrage has come down heavily over the last few weeks. But before you rush into APHA stock, you should realize that even with global cannabis expansion, the U.S. will still own the lion’s share of the market. The Aphria-Tilray merger While the rise in most cannabis stocks on Feb. 9 looks like it's related to sentiment rather than fundamentals, Aphria's is based on its merger. Indeed, mergers and acquisitions may be the only way to make the sector sustainable, at least in the near term. According to an ArcView Market Research and BDS Analytics report, the cannabis sector will reach $40.6 billion by 2024. Therefore, true international viability for weed may be years, perhaps decades down the line. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. But now that legalization dropped this standard, many companies that ordinarily would have been discouraged to compete quickly arrived on the scene. We will be closely following how the merger agreement advances and if you want to receive updates on the merger, please send an email to support@technical420.com with the subject “Aphria and Tilray Merger” to be added to our distribution list. The completion of the merger will get that ratio to the agreed-upon 0.8381. Many companies tried to cut costs to survive the pandemic and accomplished this through stock award programs. And with the U.S. being the dominant player in cannabis, the black-market dilemma is especially problematic during this pandemic. Tilray and Aphria are set to approve the merger at shareholder meetings next week. quotes delayed at least 15 minutes, all others at least 20 minutes. is not a licensed broker-dealer, market maker, investment advisor, or underwriter. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. . Also, South Korea, which has very conservative anti-drug policies, amended its laws to allow imports of CBD-infused products. Subscribe now and learn how you can capitalize on the Green Age! The industry benchmark, the Horizons Marijuana Life Sciences ETF, has soared 95% so … The botanical industry has enjoyed a massive resurgence but new questions about viability have sprouted over the trailing year. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Investors seeking to profit from the merger of Canadian cannabis companies Tilray Inc. and Aphria Inc. are best to do so by buying shares of Aphria, … For sure, everyone in the cannabis sector is eyeballing the U.S. — that’s where the demand is. Proprietary commentary can also be accessed by simply entering a ticker symbol into the search box such as “TLRY” or “APHA“, or clicking on a stock ticker in the tag cloud at the foot of this article. Enter your email below to join the official Technical420 newsletter. Investors were pleased to see consolidation in the … Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination. Tilray stock soars after 'reverse' merger deal with Aphria at a 23% premium Published: Dec. 16, 2020 at 7:21 a.m. Should the deal go through as planned, the combined entity will become the world’s largest global cannabis company by sales. In this segment from Motley Fool Live … 1125 N. Charles St, Baltimore, MD 21201. and noticed that executives were reporting large stock grants (especially when you value the positions at the current share price) from previously announced equity incentive initiatives. As a result, any change in Aphria's share price directly impacts Tilray's share price. This field is for validation purposes and should be left unchanged. According to the company’s website, it was the first company “to legally export medical cannabis from North America to Australia and New Zealand.” Tilray was also the first “to legally export medical cannabis products from North America to Europe.”. While this type of activity is completely normal, we believe our readers should be aware of the trend. 3 Big Stories to Catch Up On. Aphria’s Global Ambitions Give It Some Heft Ahead of Tilray Tie-up, Is a Stock Market Correction Coming? We highlight companies that have the most growth potential by utilizing our proprietary analytics platform. It’s a heckuva risk but it’s there if you want it. 1125 N. Charles St, Baltimore, MD 21201. APHA stock seems like a compelling buy based on its upcoming merger with Tilray but you should look at the facts before deciding. Aphria agrees to a reverse merger with Tilray, valuing the combined company with a listed EV of $3.9 billion. Aphria shareholders will receive 0.8381 shares of Tilray stock for each share of Aphria common stock they own, while Tilray shareholders will continue to hold their existing Tilray … When all cannabis products were under strict governmental controls, this limited the overall profitability of the green industry. Notably, Malaysia “announced that it would abolish the death penalty for 32 offenses, including drug charges.” This came after protests following the controversial death sentencing of a Malaysian man who sold medicinal cannabis. The good news is that their merger has once again sparked interest in … Typically, we would not highlight this type of insider trading activity but find it to be of significance due to the three separate shareholder lawsuits that have recently been. On Aphria’s side of the ledger, the cannabis firm has operational footprints in Europe and South America. With a high barrier of entry, many would-be weedpreneurs simply took a pass. Furthermore, investing in such securities involves substantial risk of loss and investors should seek advice from financial professionals before investing. Still, a cloudy narrative means you should think carefully about APHA stock. Article printed from InvestorPlace Media, https://investorplace.com/2021/04/apha-stock-interesting-international-ambitions-but-is-it-enough/. Initial returns from the start imply a 20%+ gap opportunity. Michael Berger is Managing Partner of StoneBridge Partners LLC. However, Aphria is undervalued relative to Tilray, which sets up an interesting trading opportunity. Primarily, Tilray spearheaded multiple groundbreaking events. Previously a maligned and illegal black market, the botanical industry is steadily becoming a legal and taxable one worldwide. It’s not guaranteed that the merger will go through, although it should. As the marijuana world knows by now, Tilray ( NASDAQ:TLRY) and Aphria ( NASDAQ:APHA) are combining in a big weed-stock merger. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. One of the more groundbreaking developments in the investment market in recent memory has been the legal cannabis sector. We are bullish on the growth prospects that are associated with the combined company and expect it to benefit from having additional resources and substantially more market share in Canada and in strategic international markets. Merger Terms For APHA Stock After Aphria and Tilray merge, the combined entity will be called Tilray and the shares will continue to trade on Nasdaq … Therefore, my thinking in this situation is that if you’re interested in APHA stock, you should do so because of its underlying fundamentals. But looking over the horizon, the combined entity could benefit from their global ambitions. TLRY closed Wednesday at $25.29. All rights reserved. We were recently analyzing Tilray’s SEC insider transaction filings and noticed that executives were reporting large stock grants (especially when you value the positions at the current share price) from previously announced equity incentive initiatives. For the fastest access to data on the Aphria and Tilray merger, you can set up a free account or sign up for our free newsletter! Seeking Alpha - Canadian cannabis players, Canopy Growth (NASDAQ:CGC), Tilray, and Aphria have more than doubled in value in Q1 2021. If you’re going to buy APHA stock, I’d be careful. Nasdaq Although Tilray said the plaintiffs’ allegations lack merit and that it will not disclose additional filings or subsequent amendments, we believe the recent developments are significant as the management team works to complete the merger with Aphria. Copyright © Next Cryptocurrency to Explode in 2021? What Did the Stock Market Do Today? Speaking of near-term catalysts, our own Will Ashworth described the arbitrage opportunity for APHA stock. For more proprietary Merger Arbitrage Limited content and analysis on this buyout, click either Tilray (TLRY) or Aphria (APHA). 2021 InvestorPlace Media, LLC. However, the U.S. will account for about $30 billion or 73% of this sector. Now what. ©2021 Technical420 LLC – All Rights Reserved. Copyright © 2021 InvestorPlace Media, LLC. The reality, dear reader, is that the window for massive gains from Tilray stock and Aphria stock has likely passed. Investors looking to tap cannabis for a new wave of upside should keep an eye on developments between Aphria (NASDAQ:APHA) and … In the all-stock merger, Aphria shareholders will receive 0.8381 shares of TLRY stock for each share of APHA they own. The recent reverse merger acquisition of Tilray announcement by Aphria provides an intriguing pseudo-arbitrage opportunity. Aphria and Tilray to Merge In $4 Billion All-Stock Pot Deal Aphria and Tilray agree to join forces, creating the world’s biggest marijuana production and distribution company with a … However, intense competition quickly came in, with companies like Aphria (NASDAQ:APHA) wanting a piece of the pie. TLRY closed Wednesday at $25.29. Technical420 is dedicated to educating investors about the risk and rewards of investing in the cannabis industry. This merger transaction will be an all-stock deal. After all, for the average consumer weed is weed — it’s hard to distinguish one brand from another. If So, When? 2020 was a challenging year for the global economy as the COVID pandemic negatively impacted all types of business. Image source: Getty Images . You might find them in the afterhours session but it’s not too often that they’re available for several sessions, waiting for any investor to mull over and exploit. Although Tilray said the plaintiffs’ allegations lack merit and that it will not disclose additional filings or subsequent amendments, we believe the recent developments are significant as the management team works to complete the merger with Aphria. On Dec. 16, 2020, Aphria (APHA) and Tilray (TLRY) announced a merger that's set to create the world’s largest cannabis company. Typically, we would not highlight this type of insider trading activity but find it to be of significance due to the three separate shareholder lawsuits that have recently been filed. After the definitive merger agreement was announced, we published a series of articles on the growth profile of the combined company. The news of a combined Aphria-Tilray business has investors excited, on top of general sector enthusiasm. Both Aphria and Tilray shares soared in mid-December, when the two companies first announced their merger. In 2020, one of the most significant developments in the legal cannabis sector was the announced merger of leading Canadian Licensed Producers (LPs) Aphria Inc. (APHA.TO) (APHA) and Tilray, Inc. (TLRY). Back in November 2018, Newsweek reported that several Asian countries were rethinking the issue of legalization, at least for certain circumstances. Last month, Aphria announced a merger with Tilray (NASDAQ:TLRY) in an all-stock deal likely to close in the second quarter of 2021. Essentially Aphria is acquiring Tilray because after the smoke clears and all the shares are exchanged, it's an all-stock transaction. This global operational experience could serve the combined entity well as the international market gradually warms to cannabis. That’s because law enforcement has bigger problems on its hands than to worry about someone lighting up. Technical420, LLC. with the subject “Aphria and Tilray Merger” to be added to our distribution list. 8 Tokens on Watch Thanks to the Coinbase IPO, 7 Infrastructure Stocks Excited For The $2 Trillion Biden Plan, Bill Gates Is Right About SPACs and QuantumScape, Smart Contracts Could Elevate Cardano to a Top Tier Cryptocurrency, 8 High-Risk Stocks to Buy That Are Worth Taking A Chance On.
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