RE:Dilution Timeline of Aphria since Inception & VOTE Comments Reposting this as this was the most amount of personal time I have ever consumed on a single SH post. Please read and understand the TLRY mission here.
Make your vote count. They should have called the vote
"Dry Powder for Acquisitions". That would bring in the correct vote..... YES.
Use your head and think about how the share price would react if Tilray were to announce an Option Deal for an MSO two or three weeks down the road. CommonCentsforDollars wrote: I pulled data from Sedar to create this dilution timeline. Below the timeline I have made a few comments in regards to the course of Aphria since inception plus comments in regards to the vote.Might be worth while for someone on the fence or others that don't know the Aphria to Tilray history.
April 30th 2013: 106,667 Shares Outstanding
Aphria company shell with an idea,.. lets grow medical mj.
June 26 2014
Black Sparrow (Capital Pool) announces LOI with Pure Nature Wellness to do business as Aphria. 38,679,587 shares with Black Sparrow holding 5.6% of the shares and Aphria holders receiving 94.4% of the shares. 5,791,460 purchase warrants and 2,600,000 options issued.
July 31 2014
Initial Private placement of 11,500,000 Subscription receipts at $1.10 per subscription receipt. Each subscription receipt entails 1 common share and 1 purchase warrant at an exercise price of $1.50.
At this STARTING POINT of being CVE stock exhange listed there are 53,281,855 shares outstanding / fully diluted 73,975,583
Cash burn and Aphria One Expansions
Feb 2016: 64,984,290 Shares Outstanding
Cash burn and significant Aphria One Expansions
Feb 2017: 124,074,220 Shares Outstanding
Broken Coast Bought: 230 Million Dollar deal: 10 Million Cash + 15.3 Million Shares
Double Diamond Facility announced
Feb 2018: 177,697,791 Shares Outstanding
CC Pharma Bought: 24.5 Million Euro’s + a potential 23.5 Million in performance milestones
LATAM Assets Bought: 194 Million Dollar deal: $1 Million Cash + 15.7 Million Shares
Double Diamond Construction costs
Nov 30 2018: 249,931,744 Shares Outstanding
Dec 2018: Irwin Simon takes over Vic’s CEO position
Feb 2019: Irwin liquidates stake in LHS – Free’s up 47.4 Million dollars
April 2019: 350 Million Dollars raised using Convertible Debentures *** Important
Germany Facility Construction costs
Oct 2019: Liquidates remaining stake in Althea – Free’s up another 15 Million dollars
Feb 2020: 267,134,208 Shares Outstanding
Repayment of $90.8 Million USD of Convertible Debentures
Bought Sweetwater: $250 Million Cash + $50 Million in Shares
Feb 2021: 316,795,419 Shares Outstanding
May 3rd 2021: Merged with Tilray: 446.16 Million Shares Outstanding
Starting any new company will always require cash for growth and expansion. This is expected. What is most important is having a management team that makes intelligent decisions from the beginning. With a share price so low in the early days it becomes very costly when looking at a dilution standpoint. For example to raise 10 Million dollars at $1 per share we get a 10,000,000 share dilution versus a raise at $15 a share where we get a share dilution of less than 670,000 shares. This is why it is so important in the early days to be extremely wise with expenditure decisions.
Within the first 2 years the cost of cash burn and the building out Aphria One was so substantial that shareholders were diluted by more than 100%. This is also the cost of raising such substantial capital at a low share price.
By the time Vic left there was 250 Million Shares Outstanding from the original 53 Million shares Outstanding when the stock first started trading
Irwin Simon took over in Dec 2018.
Irwin intelligently saw where the cannabis sector was going before it did. Before Liberty Health shares dumped Irwin made an exit arrangement to break us free of an extremely costly 12.5% interest fee from the poor arrangement that Vic Neufeld had made for someone else to “hold” our shares. Getting out of the burdensome cash burning arrangement while also freeing up nearly 50 Million dollars and retain a significant return from our original investment.
By April of 2019 Irwin made arrangement to raise 350 Million dollars through convertible debentures. By raising CASH through debentures he reduced selling pressure on the stock and raised enough money to get through the oncoming storm that he saw coming that most CEO’s didn’t. *** IMPORTANT: Look at any LP’s stock chart from April of 2019, after raising the much required 350 Million dollars is when the sector tanked into the dead for nearly 2 years. Irwin Simon prepared us to survive through that cannabis cash raising drought. Other CEO’s didn’t prepare and many went through reverse splits or terrible dilution raises. ACB and HEXO being two of the ugliest examples.
The sector is rapidly moving in USA. Irwin has proven that he can operate within Canada better than any other LP by retaining the largest market share and producing better numbers than our competitors, already before merging with Tilray. The Canadian government issued over 500 grow licenses which is not Irwin’s fault. That has created an extremely competitive environment working with far thinner margins than our counterparts in the USA.
While some would like to see organic growth, we nor any CAD LP are in a position ”time” wise. MSO’s are currently working within what I would categorize as a grey market. The ability of seed to sale generating substantial profits in an environment that lacks a controlling body, costly red tape and Federal taxes. It is possible in the future there won’t be seed to sale which depends on the structure and control that the US government puts in place. However, in the meantime all the BIG MSO’s are banking 100’s of millions of dollars in profits. In order to be in a position to compete when federal legalization happens and to partake in the American market we will need to make acquisitions. The ONLY WAY to be able to do that is by voting YES and giving our proven CEO the ability. A NO vote puts management in hand cuffs. I can’t fathom what type of shareholder would want to do that.
The other aspect of a YES vote not only gives Irwin the capability of making accretive acquisitions, but by making acquisitions that bring immediate profit to our bottom line will also encourage institutional investors into our shares. Thus reducing the high level of retail ownership and putting shares into stronger hands which in turn will provide less share volatility and better share stability and growth going forward. We need those institutional investors.
It is your vote. Make your own desicion. You know where I sit on it.
eom
momo