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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Bullboard Posts
Comment by WinterCon Aug 16, 2016 7:47pm
169 Views
Post# 25148079

RE:Will Bought Deal put pressure on share prices to decrease ?

RE:Will Bought Deal put pressure on share prices to decrease ? Well, assuming the number of buyers are kept constant, there will be more people selling the shares. If they decide to sell it for cheap, then obviously stock prices will decline. If they sell over a long period of time it won't affect the stock prices too much. If they try to unload everything as fast as they can. Other investors will notice and they will start selling as well, this will crash the stock prices. Hence, this means that they will sell a bit over a long period of time. They will hold the stocks if the prospect of the company is good.

Note that the number of buyers are going to increase significantly for this company over time (lots of volume later due to higher exposure), good growth in company revenue and profits will keep the stock prices increasing. The company also just acquired 30 million dollars. How well they spend this money will effect growth and eventuall share prices as well.

A company getting financing is a good thing, share dilutions are a bad thing. So they cancel each other out. Company growth looks good, so all in all its a positive thing for Aphria.
Bullboard Posts

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