Post by
fourtwenty on Feb 03, 2021 11:07am
Why is Aphria share price lagging so far behind Tilray?
A similar question asked before but rephrased. Why is Aphria's share price lagging so far behind tilray? Is there that much concern the deal might not go through? Based on the ratio of the deal APHA should be trading at roughly 843% of Tilray ($23.71USD) but instead it is trading at $17.18USD. That's a massive spread so I was wondering if anyone has insight into why the spread is so high?
Are there real concerns the deal won't go through?
Comment by
dbapha on Feb 03, 2021 12:31pm
I've been lurking around here forever (I bought not too long after IPO; ~1.35)....always regretted not selling when it previously hit $24; now that we're back, thinking about cashing in. Problem is, the spread between APHA and TLRY doesn't make sense to me, and if APHA caught up, I'd be up another $150k so don't want to unload. Any ideas?
Comment by
wideopenthrottl on Feb 03, 2021 12:42pm
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Comment by
Ziggy1950 on Feb 03, 2021 12:44pm
This should be mid to upper twenties , I will wait for merger & legalization and see how it looks then. Lots of catalysts to come into play yet.
Comment by
dbapha on Feb 03, 2021 12:55pm
Thanks all. But any ideas/speculation as to why the spread exists in the first place? I feel like I'm missing something fundamental.
Comment by
CommonCentsforDollars on Feb 03, 2021 1:01pm
Tilray is short squeezing. Shares short is a cajillion + whatever was shorted naked. While there are a lot of shares short on Aphria it is nothing like the cajillion Short on TLRY. Also TLRY has far less shares outstanding which ups the ante of the squeeze. Aphria is along for the ride. That is why the lag in price.