Aphria Stock: The Merger Deal and its Effects

In December 2020, Aphria and Tilray announced their reverse merger deal whereby it was confirmed that after these two firms will merge, they will form the largest cannabis company in the industry. For once, this announcement boosted the stocks of both companies because it came up as good news. Afterward, the stock of Aphria went down. The value of the stock has thereafter reduced a little. Reason for this Downfall Not all investors are happy with the news of this merger. While the stock of Aphria went down, on one hand, the stock of Tilray went up on the other. The reason for the rise in the stock value of Tilray is that its shareholders will get paid a premium because of this merger deal. If we consider overall, then Aphria has proved to be a more stable and constant company instead of Tilray. Tilray suffered losses this year but Aphria is way too solid for that matter. The investors are mainly concerned about the deal because it could also make things worse rather than making the companies stronger. Stock Analysis: Aphria Inc. (NASDAQ: APHA) and Tilray Inc. (NASDAQ: TLRY) Aphria Inc. (NASDAQ: APHA) 52 Week Range: $1.95 - $8.88 Average Volume: 11,420,290 Market Capital: $1.997B Forward Dividend and Yield: N/A (N/A) Tilray Inc. (NASDAQ: TLRY) 52 Week Range: $2.43 - $22.95 Average Volume: 19,919,441 Market Capital: $1.307B Forward Dividend and Yield: N/A (N/A) The Fate of the Stock of Aphria Inc. (NASDAQ: APHA) Despite the recent downs that the…

Big Merger deal between Tilray and Aphria

Tilray (NASDAQ: TLRY) and Aphria (TSE: APHA) have decided to merge and become the largest company for the production and distribution of marijuana. The total and combined value of these companies will thereafter be $4 billion. Let us look at their present individual statistics: Tilray (NASDAQ: TLRY) 52 Week Range: $2.43 - $22.95 Average Volume: 17,312,909 Market Capital: $1.246B Forward Dividend and Yield: N/A (N/A) Aphria (NASDAQ: APHA) 52 Week Range: $1.95 - $8.88 Average Volume: 9,885,689 Market Capital: $2.319B Forward Dividend and Yield: N/A (N/A) Canada first legalized marijuana in the year 2018 and in the United States, various states are legalizing the same one by one. The cannabis-infused drinks will also be led by the combination of these two big companies. While Tilray has partnered with the Anheuser-Busch InBev and the company that Aphria will take over is Sweetwater Brewing (the United States craft beer firm). For the production of branded CBD and hemp products, the main focus of these combined companies would be on Manitoba Harvest and Sweetwater. For the post of the Chairman and the CEO of the combined company, the present chairman and Chief Executive Officer of Aphria Irwin Simon will take over while the Chief Executive Officer of Tilray Brendan Kennedy will be on the board of directors of the new combined company. Trading of Stocks after this Merger Deal As per the conditions of this contract, 0.8381 shares of Tilray will go to the investors of Aphria (for each of the common shares…