Aphria didn't need the merger. Tilray desperately needed a savior. Tilray shareholders were saved from doom, and finally have a chance to be winners.
That's why I don't understand why Aphria shareholders aren't getting a better deal. Tilray was going to be a fire sale like ACB in 12 months.
Aphria shareholders are taking on all of the risk.
The bet is that Aphria can do more with the same assets that current Tilray management failed to deploy profitably.
The first synergy will hopefully be instantaneous once the deal is finalized; lowering Tilray's all-in cost per gram of flower. It would otherwise be huge if it wasn't for Tilray's comparatively low Flower sales. Still, it should be a big cost savings that cuts into their loses.
Almost everything else is based on Aphria doing better with Tilray's brands than they did on their own, and hoped for legalization in the USA and EU.
Hopefully, legalization happens sooner rather than later, because Aphria's shareholders are going to be on the hook for Tilray's loses.
