Aphria Stock Analysis

Business Description:

  • CAD 369 million in revenues in FY20 (ended in May 2020) - one of the largest marijuana producers in the world

  • 107 000 kg of cannabis produced in FY20 and 39 600 sold

  • All-in cash cost of dried cannabis of $1.90 including cash cost of $1.04

  • No US business yet as Federal Ban still in place

  • Merger will create largest cannabis company worldwide with TTM revenues of CAD 874 million vs CAD 842 million for current leader Curaleaf and CAD 602 million current second place Trulieve


  • All stock merger with each share of APHA to be converted into 0.8381 shares of TLRY

  • Current spread around 20%

  • Huge market potential, especially if the US legalizes marijuana (Legal in 39 out of 50 states)

  • Speculative bubble of 2018 over as industry have now consolidated and companies more stable

  • Will own about 20% of market share in Canada


  • Highly competitive industry

  • Regulated industry, some products might need approval from authorities

  • Still losing a lot of money

  • Speculative stock

Read Full analysis on my Research Partnership: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/29945014

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