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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

Comment by probowler900on Dec 16, 2020 7:06pm
329 Views
Post# 32124804

RE:Does anyone know the answer to these questions ?

RE:Does anyone know the answer to these questions ?Based on your question I will use exageratted scenerio:

If Aphria went to $1 share and Tilray was at $10 share. You are best to buy Apha.You would get .8381 of a Tilray share valued at $8.381 for $1 investment.

If Aphria went to $10 share and Tilray went to $10 share.You are best to buy Tilray because upon conversion,your Aphria share becomes .8381 of a tilray share valued at $8.381 a loss of $1.619 per Aphria share.

Both scenerios are using same currency of US dollars.

Ideally at the current time,the share differential should be that Aphria shares trade as a direct relation to Tilray shares at the 83.81% of the Tilray stock price. Being as such:
If Tilray is at $10.Aphria should be $8.381 per share US dollars.
Any variance in that ratio creates an advantage over the other in buying or selling either stock based on the example above.

The reason the 7.87 will no longer match up per your question is because that price does not reflect the 23% premium that was offered as part of the merger deal after the fact.

Hope this gives some colour to the current scenerio.
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