Bullboard - Stock Discussion Forum 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... see more

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Aphria Inc. > Does anyone know the answer to these questions ?

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Post by StockDoc60 on Dec 16, 2020 6:01pm

Does anyone know the answer to these questions ?

1.Stock Closing prices Dec15th :
Aph(tsx) == 10.32. Cad

Tilray (nasdaq) == 7.87 usd/ (aprox 10.00 cad@1.27 rate )

so both stocks were almost the same price at the end of the day . If this is so why do we get a .83 exchange rate on tilray share and not closer to 1 to 1? It seems like we lost 17% ?
what am I missing here ?

2. Assuming the .83 rate is what we get and two investors hold a 1000 Aphria shares each .
investor A has 1000 on nasdaq and investor B has 1000 on tsx.

Do both investors end up with rhe same number of Tilray shares . 830 shares in usd ?

3. Today Tilray trading is much much stronger than Aphria on tsx ( where I hold my shares )
Supposev this continues and Tilray goes to 15 usd and Aph goes to 7cad .

Do I still get the same number of Tilray shares at the close of the deal even though the Aph share value has declined . If that is so , isn't it better to accumulate tilray via Aphria shares ?.

thanks in advance

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Comment by kingbear on Dec 16, 2020 6:12pm

It's .838:1 no matter what happens. Aphria and Tilray will trade together. Basically if you want to know what Aphria should be at... it's .838 of Tilray's SP. IF Tilray is at $13 Aphria will be at around 10.89 USD. (13 x .838).

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Comment by probowler900 on Dec 16, 2020 7:06pm

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 ...more

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Comment by StockDoc60 on Dec 16, 2020 8:28pm

Thanks to all those who helped shed some light on the questions I posed on an earlier post ! it now seems to me that we will all eventually inherit 830 Tilray USD shares for every 1000 Apha that we own ( either on tsx or nasdaq). So , as long as Tilray keeps going North we will be fine no matter what Aph shares does !, With greater US exposure that should likely happen. Given the ...more

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