RE:RE:RE:Rumors CGC APHA round 2ProfCornelius wrote: Positivelive1 wrote: Why would APH merge with a company that can't turn a profit or produce winning brands?
How about receivng oodles of capital, via STZ, to conquer Europe with, unencumbered access, through CGC, to a ginormous US market that is about to open up soon if the Dems take the senate and presidency and the fact that Aphrias share price will rocket when CGC takes a majority stake while retaining Irwin Simon as CEO. Sounds good to me. Prof
Betting Bruiser doubling down now , follow up Tweet
https://twitter.com/BettingBruiser/status/1315725784787582983?s=20
It would be a perfect opportunity for Constellations Brand (STZ) which is a big CGC shareholder to acquire the only real competition out there without paying any cash, would be an all share acquisition in my opinion. This would also give them access to APHA 500M cash and nice CC Pharma exposure.
It seems like a good strategic move also to negate any big company, when I say big companies I'm talking about the other big Alcohol / Tobbaco / Pharmas to acquire the only possible competition which is APHA.
I would be really envious if I were STZ and my competitor acquires APHA for 5 B$ CAD (in that case, compared to STZ, it would be a 100% acquisition for that price, that's the price STZ payed for CGC) to have access to a company like Aphria that is :
- Ebidta Positif
- #1 Rec Sales
- 500 M cash
- Done building except for Art of state facility we never got follow up news on
- Good Germany/Europe exposure, CC Pharma
- So obviously unlike CGC, if APHA was to be acquired by a STZ competitor, for 5B $ CAD to continue with my example, it would add to the 500M cash APHA has and would be used for U.S expansion once it's legal, would be a 2 for 1 price. Pay 5B$ CAD as an excuse to own Aphria and then use that same 5B$ for expansion.
- From an APHA shareholder, looks like a bad deal (Merger with CGC) considering what Canopy Growth Corporation was able to negociate with STZ.
- I'm sure big investors will knock on Aphria door if Biden wins and US legalizes.
So from my point of view/opinion, it would really hurt STZ if they allow a competitor to acquire APHA. So why not bribe APHA with the arguments ProfCornelius gave.
For alll the bullet points reason, I would not want a APHA CGC Deal.
Irwin must do what is right for APHA shareholders, not what is right for STZ/CGC shareholders
It's only a rumor, so until it's official, we have to take it with a grain of salt. Wanted to share my opinion nonetheless because it's an interesting topic.