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

Aphria Inc.

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Comment by skyplton Sep 03, 2019 3:21pm

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Post# 30091498

RE:RE:RE:RE:RE:RE:Let's keep this board focused on APHA information.

Thanks DD1964. I guess my primary question is how is this monetized...or can it be?

Daredevil1964 wrote:

Hopefully, I can explain this correctly.
Here is an example, if the shares are trading at $10, and a convertible bond converts to $30 per share, a convertible bondholder has no incentive to convert his bond. For all intents and purposes, analysts treat the convertible bond as straight debt. However, if the share price rises above $30, it's highly likely that the bonds will convert to equity. In this case, the analyst must make adjustments to debt and shareholders' equity to factor the impact if all the bonds covert, whether this happens or not.

This increases the company's share count, which is not too pleasing for existing shareholders. Earnings per share decline as a result. The conversion affects debt-based ratios such as debt-to-equity. Equity-based ratios like return on equity are affected as well.