The Daily Hit: December 16, 2020

It’s time for your Daily Hit of cannabis financial news for December 16, 2020.

On The Site

Aphria

Aphria (APHA) and Tilray (TLRY) have announced the two companies would be merging. Aphria shareholders will receive 0.8381 shares of Tilray’s for each Aphria stock they own. Aphria will own about 62% of the combined company, however, the merged company will supposedly be known under the Tilray name and would trade with the TLRY stock ticker. Both stocks moved higher on the news, which neither company has commented on.

The combined revenue of the two companies would be approximately $685 million, making it the largest in terms of sales, but the combined market cap is still lower than competitor Canopy Growth (NASDAQ: CGC). Aphria said in a statement that the implied pro forma equity value of the Combined Company is approximately C$5.0 billion (US$3.9 billion), based on the share price of Aphria and Tilray at the close of the market on December 15, 2020.

Aurora

Aurora Cannabis Inc.  (NYSE: ACB) provided a business update amending the company’s credit facility. The shares were falling in price on the news and were lately down 1% and selling at $10.01. The company said that there are no changes to the commitment amounts under the facility which currently stand at $101.2 million under the term loan and $15 million under the revolver (currently $2 million drawn). The second amended and restated credit facility has a first ranking general security interest in the assets of Aurora and can be repaid without penalty at the company’s discretion.

C21

 C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) announced unaudited results for its third-quarter ending October 31, 2020, with revenue of $9.5 million. Most of the revenues came from Nevada’s retail operations which rose 5% sequentially to $8.9 million. C21 also delivered a net income of $2.3 million for the quarter. The company’s strong results delivered $0.014 earnings per share in the third quarter and an earnings-positive result year-to-date with net income of $475,000.

Gage

Michigan-based Gage Cannabis Co. has secured an investment of $20 million from funds advised by JW Asset Management as part of the company’s Regulation A, Tier 2 capital raise. The company said it is hoping to go public by the end of the first quarter of 2021. Additionally, Gage confirmed that general public access to the Offering will close on December 16th, 2020.

In Other News

Indus Holdings, Inc. (OTCQX:INDXF), announces the pricing of its previously announced overnight marketed public offering of 20,000,000 units of the company at a price of C$1.50 per Unit, for aggregate gross proceeds of C$30,000,000. In addition, the company has granted the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the Offering on the same terms and conditions to cover any over-allotments and for market stabilization purposes.

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