- Executives at Aphria and Tilray had more information than we did in December when the deal was first announced. But now with both fall quarters reported, we have greater clarity.
- While it looked like Aphria was overpaying by about 22% using the numbers we had in December, that looks like a much more modest 9% now.
- Despite that, on balance I like the combination for Aphria. It fills holes in their portfolio, and gives them a chance to bring Tilray’s underperforming assets up to their level.
- There is a long-short spread trade to be had right now, but both stocks are being batted around by Reddit users, so it can be dangerous.
For further details see:
Aphria And Tilray: Reassessing With Q4 Numbers