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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
Post by KnowNoton Jun 06, 2018 6:06pm
233 Views
Post# 28135790

Thoughts About Dilution

Thoughts About DilutionIgnore the non-sensical emotion on this Board. It serves no purpose and will cloud your judgement. I assure you the authors of the emotionally charged posts on all sides don't have a clue what they are talking about. You should not take investment advice from any of them.

Just a word about dilution. Dilution, in and of itself is not a bad thing; it is narrow-minded to think it is. You have to place everything in its proper context

Until recently, managerment for all companies have been forced to raise funds by issuing shares because there was no institutional debt financing available. This has turned out to be a blessing, really, beacuse if debt financing was available, the cannabis companies would have been saddled with crippling debt by now. Would you feel better if APH was in serious debt that could not be covered by revenues? Instead, APH gets to go to battle with a strong balance sheet.

The analysis now should be... yes, more shares were issued but will the return on the cash injection offset this? Management hasnt shown all their cards. You either trust them if you don't. If tou don't, no big deal, sell if you own, don't buy if you don't.  
Bullboard Posts