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
Catalysts:
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
Risks:
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