Tilray Plunges Most on Record as Cannabis Stocks Tumble
Bloomberg 2/11/2021 Michael Bellusci and Kristine Owram
(Bloomberg) Tilray Inc. fell 50% Thursday, the most ever, halting a record three-day rally as another Reddit-inspired push into cannabis stocks quickly unraveled.
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The loss helped push the ETFMG Alternative Harvest ETF, known by its ticker MJ, down 25% in its biggest ever drop as other pot stocks also see-sawed from gains to losses. Canopy Growth Corp., the biggest cannabis company by market value, also took a sharp drop ending 22% lower.
“The market has a pretty bad case of ADHD these days, and the latest shiny object for what has been a rabid retail crowd is cannabis stocks,” said Ben Johnson, Morningstar’s global director of ETF research. “The all-important question is whether all of those fundamentals, all of that enthusiasm is priced into the shares or not.”
Aphria, Tilray Combine to Create Biggest Cannabis Company
Bloomberg 12/16/2020 Tiffany Kary
(Bloomberg) Tilray Inc. and Aphria Inc. agreed to combine their operations, forming a new giant in the fast-growing cannabis industry.
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The all-stock deal, which puts together two of the market’s best known names, will create an entity with an equity value of about C$4.8 billion ($3.8 billion), according to a statement and interviews late Tuesday with Tilray and Aphria leaders. The combined group’s 12-month sales of C$874 million surpasses that of industry leaders such as Curaleaf Holdings Inc. and Canopy Growth Corp.
The new company will keep Tilray’s name and trade under its ticker on the Nasdaq, and Aphria shareholders will own 62% of Tilray’s stock under the terms of the transaction, which was characterized as a “reverse acquisition of Tilray.” Ontario-based Aphria will pay a 23% premium to Tilray’s Dec. 15 closing price of $7.87.