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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 Alex1100on May 14, 2020 12:43pm
374 Views
Post# 31028268

Simple math...

Simple math...

My napkin math says that if Apha bought a debt of 127 mil for 18.7 mil shares @ 25% discount, it could only means the following:

Since no creditor would agree to such terms without getting anything in return, the deal could be such that enable the Mysterious (creditor) to made up for its loss by shorting Apha s/p with its 18.7 million newly printed shares (what else would he do with them otherwise). This means that the price of 5.24 Cad from 07/05/20, should have been lowered to the level of 3.55 cad in order to cover the Mysterious loss (31.75 mil), and that is of course without interest. This price action of course immediately followed, however, it seems that it happened more because of the (expected) market reaction on dilution, than because of shorting, which is of course even worse as it increases the danger of future s/p control by Mysterious. So, to make long story short, this agreement was, good for both parties, but certainly not for the shareholders, for whom this was an unnecessary dilution, and represent a additional danger, because the Mysterious has not yet run out of ammunition...(remaining convert. deb.not to mention)!


Bullboard Posts