Marijuana News

Aphria-Tilray Scaling Together

So, I have been learning more about the rule of 10’a as I have gotten older. I should rather say applying the rule of 10’a as I have gotten older. I understand spreading investments across real estate, metals, stocks, commodities, livestock, CDs, and crypto. Looking at cannabis stocks recently has me driven to put my money where my smoking is….

Tilray Art 2

Watching the market, Tilray and SNDL (Sundial Growers) are cannabis stocks that have been considered primed for continued growth. Those that have invested in the past have seen great returns. Like 150% returns. So let’s look more at Tilray! 

Marijuana Business daily reports “On-again, off-again merger talks between rival cannabis producers Tilray and Aphria had their genesis in October 2019. When an unidentified investment bank, active in the marijuana space, pitched a meeting between the company’s respective CEOs. According to a proxy statement filed by regulators. From there, the blockbuster merger took more than a year to finalize: Talks were placed on hold as the pandemic emerged, and the terms were subject to significant revision”. 

Tilray Art 3

The article is an interesting read if you check out the full content on marijuana business daily. Reading between the lines you get a story of leveraging, bringing in third parties for leverage and the potential to nix the deal or scale it bigger at any given moment. This could have been much to do about nothing; however, the behind the scenes working produced a partnership that may put some serious money in investors pockets.   

While certain elements of the pandemic affect how business is scaled back or re-allocated these negotiations were more involved with the effects of the pandemic on how the market was growing. The cannabis industry is one of the few markets that have been fool-proof since the pandemic. These negotiations were more about waiting to see how the market would level out for the cannabis industry, but the fact the market would yield a higher price was never in question.  

Aphria

The deal between these two conglomerates was finalized in December of  2020. The final deal’s terms were announced Dec.16, including an equity ownership split of 62% for Aphria and 38% for Tilray with Simon keeping the CEO title – almost the reverse of the first deal pitched by Tilray, according to Marijuana Business News. Invest wisely my friends. The industry is only growing.

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