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

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Aphria Inc. > What am I missing with the price????

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Comment by miscstuffon Feb 16, 2021 1:03am

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Post# 32570866

RE:What am I missing with the price????

bassfishing88 wrote:
Let's say the merger goes through and the tlry:apha merger is NEARLY 1:1 for the new company.The price for apha is significantly lower than tilry,so does apha have to move up or does tlry have to move down so that their prices are very close before the merger? Or is there another way this can play out?Just not getting this discrepancy right now.TIA

More than 15% of that discrepancy is because of your calculation - the conversion isn't 1:1, but .8381 shares of Tilray for 1 share of Aphria. In a perfect world with all investors knowing what was going on, you would expect the prices to be 1:.83, but my guess is that prior to the merger Tilray will be closer to but relatively higher than the conversion rate. APHA shares will be converted and many Tilray holders won't even notice. Where the price goes after that is anybody's guess. Maybe we go up because the deal is complete as promised. Maybe we go down with the "sell on the news" mentality. GLA

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