King Cannabis Irwin Simon CEO of the Year! Well, Aphria now has will have more US and Beverage revenue than Canopy. if You consider their 420 brand “cannabis related” (Terpenes and such but that’s a stretch) I could argue Aphria will have more Cannabis (read hemp) drink revenue than Canopy. It cost shareholders much less than CGC’s attempts to enter the US thus far considering they’re using a credit line for part of the purchase and dilution is minimal since Aquisition is financially accretive And APHA can actually realize the monies from US sales on their balance sheet. Plus with Covid impacting sales it’s possible SweetWater was had for a small discount relative to if Covid had not been a thing.
Canopy on the other hand spent +$300M on an obligatory “option”, no immediate (or guaranteed future) returns for that “investment” and the company (ACRG) is not exactly a top Teer performer.
Lord Jones was $300m for how much revenue and assets? Is that an overcrowded market or a growing one?
SweetWater has current distribution ability and infrastructure in over half the USA (including Costco and airlines), and products in multiple countries across the Atlantic. Growing market with cannabis focused branding and popular products. It’s easy to expand an already functioning beverage facility to include cannabis extraction and infusion especially in a cannabis progressive state. Or leverage the physical assets to work with Cannabis distributionwithin USA once permissible.
In the meanwhile the $29Billion annual craft brewing market continues to grow in favour of flavourless options.
Immediate accretion to balance sheet, minimal dilution in the true sense of the word, immediate realizable revenue in a growing US market, and established brands that already resonate with cannabis culture.
It really is just math and attempting to generate immediate positive income instead of hype for future potential from operations.
copied from TheCannalysts
'In the U.S., Aphria is taking advantage in (the craft brewing) industry, but at the same time leveraging it for cannabis. The deal was about cash-flow generation that provides us an avenue to continue to build a war chest for further entries into the U.S. as we continue to build out the U.S. opportunity".