APHA Discount

Hi Travis - let's do the math.

So today - say you bought 1000 APHA shares. That would be worth $16,580 in your account as they are trading at CAD$16.58 per share.

As per the deal, you are entitled to 838 Tilray shares (1,000 Aphria Shares X 0.8381
= 838 Tilray Shares)

Right now, TLRY is trading at USD $18.71 per share. That gives it a USD Market value of (18.71 * 838) USD$15,678.98.

Using today's exchange rate (1.28), that gives you a CAD market value of ($15,678.98*1.28) = $20,069.09$

So what this tells me, APHA is trading at a discount (~22%) to the current buyout offer (assuming my math is correct). Worth noting, i did this calculation about a month ago for another member - it was only at a single digit discount. At the moment, it certainly looks like an interesting arbitrage opportunity. As you pointed out, the closer it gets to the deal that gap should close. Unless, the market is thinking the deal will not go through but I haven't heard of any rumblings about that.

Mat

Hi Travis - let's do the math.

So today - say you bought 1000 APHA shares. That would be worth $16,580 in your account as they are trading at CAD$16.58 per share.

As per the deal, you are entitled to 838 Tilray shares (1,000 Aphria Shares X 0.8381
= 838 Tilray Shares)

Right now, TLRY is trading at USD $18.71 per share. That gives it a USD Market value of (18.71 * 838) USD$15,678.98.

Using today's exchange rate (1.28), that gives you a CAD market value of ($15,678.98*1.28) = $20,069.09$

So what this tells me, APHA is trading at a discount (~22%) to the current buyout offer (assuming my math is correct). Worth noting, i did this calculation about a month ago for another member - it was only at a single digit discount. At the moment, it certainly looks like an interesting arbitrage opportunity. As you pointed out, the closer it gets to the deal that gap should close. Unless, the market is thinking the deal will not go through but I haven't heard of any rumblings about that.

Mat