This is why I'm on the fence with medreleaf deal
The Motley Fool Search Ticker or Keyword Another Marijuana Stock Megadeal: Will Aurora Cannabis Buy MedReleaf? No. 2 plus No. 3 could result in No. 1 in the Canadian marijuana industry. Keith Speights (TMFFishBiz) May 6, 2018 at 9:41AM Does a deal make sense? There are no details to analyze yet, so it's premature to say if an acquisition of MedReleaf by Aurora Cannabis would be good for the two companies' shareholders. However, I think that the idea of combining the two companies is generally a good one. If we were just looking at the Canadian marijuana market, it would be a different story. Although most marijuana growers have been cranking up production capacity in anticipation of the legalization of recreational marijuana later this year, it appears that there could more supply than demand in the Canadian market. But Canada isn't the only country with a growing marijuana market. At least 22 other countries have legalized medical marijuana, including Germany. Worries about a supply glut are overblown if these international markets reach their potential. Aurora's management team talked in April about a potential $37 billion marijuana market in Europe, with a market of up to $110 billion annually in the rest of the world. I suspect those estimates are overly optimistic, but even if the market potential is only half that size, increasing capacity makes sense for the company. Buying MedReleaf would be a quick way of boosting production capacity. However, if Aurora does acquire MedReleaf, it would likely mean some pain for investors. Aurora issued 69.3 million new shares and paid $134 million (in Canadian dollars) to buy CanniMed. MedReleaf is around three times bigger than CanniMed. It seems likely that Aurora would need to not only issue more shares but also take on additional debt to fund a buyout of MedReleaf. My two cents: if deal goes through it is good for us on the long run. Short term we would be in a bigger consolidation period and not a good sign for those who bought in at a high price. Not a big supporter of fool but I read their articles to get more insight. Not a bad debate. https://www.fool.com/investing/2018/05/06/another-marijuana-stock-megadeal-will-aurora-canna.aspx