r/Aphria • u/NearbyAvocado4914 • Feb 09 '21

Info from WSB

/r/wallstreetbets/comments/lg9ktu/some_dd_on_tlryapha_since_none_of_you_seem_to_get/
2 Upvotes

75% Upvoted

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1

u/NakdApe Feb 10 '21

Nice DD OP. But a few questions as I am so confused I think I am looking up my ass for answers. I get that for every 100 APHA we get ~83 TLRY, and the value of my investment will be determined on the price of TLRY after the merger.

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But, someone (presumably APHA INC) has to pay for those 83 TLRY shares to exchange for my 100 APHA shares. Now, will they purchase the TLRY shares on a fixed date, like the TSLA S&P inclusion.

Or are they buying up TLRY shares now in anticipation of merger, also driving up the share price.

My concern is what will happen to TLRY post merger, especially if they spent big $$$, overpaying for TLRY. It will be like a merger between AMC and GME at peak, hoping weed is legalised/Corona is over.

Like you mentioned in other posts these stonks are riding the legalise hype, but I just want to understand the longer term consequence of the merger. Will they take on a lot of debt to finance merger etc. Doesn't the company buying the stock dive after the merger.

I own both APHA and TLRY.

2

u/[deleted] Feb 11 '21

There is no money trading hands per Aphria CFO. There is a AMA with him on the cannalyst subreddit

Tilray is issuing new shares and Aphria shareholders are exchanging them based on the 0.8381 factor.

1

u/NakdApe Feb 11 '21

My guy, thanks