This deal is the latest to join the cannabis acquisitions spree…

Surging sales, acquisitions, liquidity – these are the sparks that will ignite cannabis into the single hottest slice of the stock market in 2021.

And even more fuel was added to that fire with Tilray Inc.‘s (Nasdaq: TLRY) $2.4 billion acquisition of Aphria Inc. (Nasdaq: APHA).

Together, these industry powerhouses will create an entity whose annual sales top even Curaleaf Holdings Inc. (OTC: CURLF) and Canopy Growth Corp. (NYSE: CGC).

The new deal will allow Tilray and Aphria to combine their resources to claim an even larger share of the global cannabis-infused beverage market, which is expected to be worth $2.8 billion by 2025.

Aphria brings to the table its recent purchase of the SweetWater Brewing Company. Made famous for its 420 Extra Pale Ale, this Atlanta-based craft brewer recently moved into making cannabis-infused beverages with its 420 Strain Series.

Tilray brings its joint venture (JV) with Anheuser-Busch InBev. (NYSE: BUD)Fluent Beverage Company – which produces CBD-infused drinks for the Canadian cannabis market.

Their operating expenses can now be trimmed down, too.

Within two years of the deal, its projected that the combined entity will save $78.4 million in cultivation and production, product purchasing, and sales and marketing costs.

In the broader framework of cannabis investing, I see this deal as proof that the acquisitions spree propelling stocks to a once-in-a-lifetime Boom has progressed from spark to full-blown flame.

And that means brand new opportunities are lining up for you to make even more money – starting today…

The Tilray-Aphria Deal Details: Upon shareholder approval, Aphria shareholders will receive 0.8381 shares of Tilray for each share of Aphria they hold, based on Tilray’s closing price of $7.87 on December 15. That means Aphria shareholders will receive $6.60 worth of Tilray stock for every share of Aphria, a 19% discount to Aprhia’s closing price of $8.12 per share. The deal creates a venture with a $3.9 billion market cap and combined revenue of $685 million, making it the largest Canadian licensed producer (LP) by sales. Aphria’s CEO, Irwin Simon, will be CEO and chairman of the combined entity. Aphria shareholders will own 62% of the new company, and the entity will operate under the Tilray name, with no effect to current owners of Tilray stock.

A Positive Feedback Loop of Millionaire-Making Proportions

The Tilray-Aphria transaction comes on the back of several other major deals that have added fuel to the cannabis industry:

  • The recent $1.5 billion acquisition of Weedmaps parent company, WM Holding Company, by Silver Spike Acquisition Corp. (Nasdaq: SSPK).
  • Subversive Capital Acquisition Corp.‘s (OTC: SBVCF) $500 million roll-up of four privately-held California operators to create the largest revenue-generating California-focused cannabis company to date.
  • And the $130 million spent by Schultze Special Purpose Acquisition Corp. (Nasdaq: SAMA) to secure its acquisition of Clever Leaves, which shareholders approved last Monday.

All this deal-making serves as one of the three catalysts that will supercharge the Boom and spur even more of the billions in capital earmarked for cannabis sector acquisitions sitting on the sidelines into action.

Meanwhile, surging cannabis sales have been working their magic on cannabis stock prices for months. Since July, you’ve watched Jushi Holdings Inc.‘s (OTC: JUSHF) stock price climb over 200%. I expect it to reach $41 by this time next year.

That growth will continue to double the size of the cannabis sector every two years and pull in more capital.

Acquisitions will accelerate as stock prices rise and spark the third catalyst – Big Money pouring in through the New York Stock Exchange (NYSE) and Nasdaq.

Together, these catalysts are creating a positive feedback loop that will drive cannabis stocks 20 to 30-times higher over the coming year, with maximum profits coming to those who invest in the right companies at the right time.

I’m talking about the companies that are strategically capitalizing on high-growth markets like Michigan, which banked more than both Nevada and Massachusetts in its first year of recreational sales with an incredible $440 million.

Just like one Michigan startup backed by none other than the Godfather of Cannabis himself, Bruce Linton.

With plans to go public in the first quarter of 2021, you could soon see this startup’s name alongside other emerging players like Jushi whose stock prices are soaring.

And its early investors could see an almost immediate windfall.

You could be one of them.

Go here now to learn more.

Take care,

Don Yocham
Executive Director, National Institute for Cannabis Investors


Comments

2 responses to “Tilray-Aphria Mega Deal Adds Fuel to the Coming Once-in-a-Lifetime Cannabis Boom”

  1. Are there potential problems with the Aphria Tilray merger. I’m assuming
    this is a hold. Also looks like we should be buying more JUSHF.
    Thanks Gus

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