There's basically only one reason why investors should consider buying Tilray stock: They expect it to move higher. Three days later, Aphria countered with a proposal that Tilray’s ownership stake would be 55%. Aphria shareholders will … Read more to find out. But why would an investor choose to buy APHA stock AND short TLRY stock? After the merger, the combined entity will generate $874 million in sales, making it the largest Canadian cannabis company. Should you buy on the dip? There are a few things to consider first. HUGE Aphria Stock Update! NIO Stock Forecast: Buy, Sell, Or Hold; Palantir Slumps Following Earnings Beat; Wall Street Breakfast: Bitcoin Goes To The Moon; Tilray, Aphria Are On Fire, And Whether You Should Buy In; Fusion Fuel Green: High-Risk High-Reward Hydrogen Stock; The Bottom Fishing Club: Photronics; Cancer And Gene Therapy; BOTZ: The Future Is Autonomous Is that a reasonable expectation after the huge gains already generated in … Contributor. PS, don't ever rely on a stranger for financial advice. The new company would be the world’s biggest marijuana production and distribution company. But should you buy Tilray before the Aphria merger?Image source: Getty Images.Continue reading (.8381% of 14.45 is 12 ish) Also I was looking everywhere but does anyone know when Aph stock becomes Tilray? Per the terms of the agreement, Aphria shareholders will receive 0.8381 shares of Tilray for each Aphria common share, a 23% premium to Tilray’s closing price as of Dec 15. Tilray's profit metrics are still weak, and shares are not in buy range. Bottom line: TLRY stock is not a buy right now. Tilray and Aphria Surge on Merger Plans, Pot Stock Peers Gain. Aphria merges with Tilray. While the company will be named Tilray following the close of the transaction, Aphria is clearly in the driver's seat. Tilray, Inc.(NYSE:TLRY): Although Tilray’s (TLRY) shares spiked last year on a booming cannabis market, it declined this month on investors’ anxiety surrounding the company’s recent merger plans and poor earnings growth in its last reported quarter. In this case, there are many risks if you simply buy Aphria stock hoping the deal closes. The stock missed analyst estimates again last week. The deal reinforces that cannabis, still seen by some as a fringe investment, is a fast-evolving sector as … Aphria shares were up about 4% in response, while Tilray stock has erupted about 24% on the day. When compared to other mergers and acquisitions (M&A) in the cannabis industry, the Aphria Inc. (APHA.TO) (APHA) and Tilray, Inc. (TLRY) merger is one of the most significant transactions to be reported by the cannabis sector in recent years.. We considered the combined company to be a leading play on the global cannabis market and are bullish on its leverage to the European Union (EU). It makes it seem like Aph is at a bit of a discount. Alliance Global Partners published a strong positive rating for Aphria on Thursday, with a forecast of $26.00; Aphria Inc. cultivates, processes, produces, markets, distributes, and sells medical cannabis in Canada and internationally. The clock is ticking on the completion of the biggest marijuana merger ever. I may be super dumb, but looking at the merger agreement, it seems like every Aphria stock gets converted to .8381 Tilray. If I weren't already a shareholder of Aphria, I would refrain from buying Tilray until a quarter or two after the merger closes. But should you buy Tilray before the Aphria merger? Should You Buy Tilray Stock Before the Aphria Merger? All of the stocks that were pumped by WallStreetBets have fallen sharply from their peaks. Under the terms of the arrangement, Aphria shareholders will receive 0.8381 of a Tilray Share for each Aphria share. The merged company will be well-positioned to pursue global growth opportunities thanks to the combining of both company’s assets. In addition, the company’s pricey valuation could make it more difficult for its stock to gain in the near term. Image source: Getty Images. Go check the math yourself if you were to spend $100 on each one and all things being equal on the day of the merger. So, why is Tilray trading at 14.45 and Aph at 9.71? Revenue Increased 26% to $210.5 Million in 2020 Compared to Prior Year Net Loss $(3.0) Million in Q4 2020 Versus Net Loss $(219.8) Million in Q4 2019 Achieved Adjusted EBITDA Goal With $2.2 Million in Q4 2020 Combination with Aphria Inc. Expected to Close in Q2 2021 to Create the Worl Should you Buy Aphria Stock before the Merger with Tilray? Talking of marijuana stocks, they have started to look very overvalued at their peaks even if we discoun Under the terms of the deal, Aphria shareholders will received 0.8381 Tilray shares for each share owned. Aphria stock brief. BNN Bloomberg | Aphria shareholders should vote in favour of Tilray deal: Proxy advisory firms April 5, 2021 Two independent proxy advisory firms are recommending Aphria Inc. shareholders vote in favour of the cannabis company merging with Tilray Inc. Tilray and Aphria collectively control 17% of Canada's retail marijuana market, although Aphria's CEO Irwin D. Simon said he was shooting for a 30% market share in … The Motley Fool - Keith Speights • 36d. This strategy is known as a hedge, and a hedge is an investment made to reduce risk. 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 shares. Aphria and Tilray are proposing to combine their businesses pursuant to an arrangement under the Business Corporations Act (Ontario). With the massive Aphria-Tilray cannabis merger grabbing the … This is especially true with Canadian producer Tilray (TLRY). In March, after COVID-19 emerged as a global pandemic, Simon suggested pausing. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Aphria's shares are up over 170%, while Tilray stock has more than tripled year to date. A new growth driver is the nearly $300 million acquisition of SweetWater Brewing, a cannabis-flavoured beer … Should you buy Tilray stock or go with another TSX pot stock before the hype returns? Instead of buying Tilray, buy Aphria. NewsWatch To profit from planned merger of Tilray and Aphria, buy Aphria, says this analyst Published: Feb. 16, 2021 at 12:00 p.m. Last month, Aphria announced a merger with Tilray (NASDAQ:TLRY) in an all-stock deal likely to close in the second quarter of 2021. Aphria Stock, Tilray Stock, & the Canadian Marijuana Market. Under terms of the agreement, Aphria shareholders will receive 0.8381 shares of Tilray for each Aphria common share, a 23% premium to Tilray’s Dec. 15 closing price of $7.87. Should You Buy Tilray Stock Before the Aphria Merger? Better Buy: Aphria vs. Tilray 0 Fears of another wave of the COVID-19 pandemic looming on the horizon are taking shape even before the first wave in the U.S. has been contained, and investors are arguably concerned about what stocks they should hold on to during this difficult period. So, should I buy Tilray stock? It was a long time coming, but it appears that good times have returned at last to the formerly beleaguered marijuana market. ET The company should complete its merger with Aphria in mid-April. It will trade on the Nasdaq under Tilray stock’s TLRY ticker. Assuming Tillray remains a higher value than Aphria, Aphria should be your buy into the merger. Tilray, Inc.(NYSE:TLRY): While the cannabis sector looked red hot at the beginning of the year, there has been a noticeable dropoff over the past couple of weeks. Explanation of Aphria & Tilray merger and which one to buy before the merger (arbitrage possibility). The company should complete its merger with Aphria … Tilray’s stock price could fall, shrinking the spread, or upside. Should I buy Aphria stock? Aphria (NASDAQ:APHA) and Tilray … The Aphria-Tilray merger is great news for the company and will open many doors for possible future growth. Tilray shareholders will continue to hold Tilray … But in the case of Tilray (NASDAQ: TLRY), patience should be a virtue. Usually, I like to answer this with a straight yes or no. Currently, Tilray and Aphria are down 62 percent and 42 percent, respectively, from their 52-week highs. Why buy Tilray? Aphria closed on Thursday at $16.27 after only changing a 0.49%. Should You Buy Tilray in April? 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