Will Aphria/Tilray Profit From U.S. Weed Legalization?MSO tang gang aren't gonna like this article.
How much Aphria/Tilray could make from the merger
According to New Frontier, the U.S. legal marijuana industry was worth $13.6 billion in 2019. The more states legalize cannabis, the higher that figure is likely to go.
Currently, there are a number of companies supplying recreational and medical marijuana to the United States. That includes both Canadian firms and home-grown U.S. operations like Tilray. If the new Aphria/Tilray company were able to grab 20% of the U.S. marijuana industry, based on 2019 sales numbers, it would generate $2.72 billion in revenue.
Of course, total legal marijuana sales are likely to be higher in the future, and 20% is just an estimate. But even figuring fairly conservatively, we can see that there is significant potential revenue to be gained here. Tilray is probably already getting a nice share of the U.S. marijuana revenue just mentioned. Once the Aphria/Tilray merger closes, APHA investors will get a chunk of it as well. So, for Canadian investors holding APHA stock but not TLRY stock, this is “new” revenue.
Full Article:
https://ca.finance.yahoo.com/news/aphria-tilray-profit-u-weed-164539402.html