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Here's Why Tilray Stock Soared 22% Today

By Howard Smith - Updated Jan 14, 2021 at 4:18PM

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Earnings from Aphria are moving Tilray shares today.

What happened

Shares of Tilray (TLRY) have been on a tear since the start of 2021. The stock has gained more than 121% in just the last two weeks, including a 22% rise on Thursday, as of 3:45 p.m. EST.

So what

Today's jump comes after fellow Canadian pot grower and merger partner Aphria (APHA) announced fiscal second-quarter 2021 earnings this morning. On Dec. 16, 2020, Aphria and Tilray announced plans to merge, creating what will be the largest global cannabis company by revenue. 

marijuana buds and Canadian money

Image source: Getty Images.

Now what

Aphria reported net revenue growth of 33% in the second quarter compared to the prior-year period. The company said net cannabis revenue nearly doubled, and each of its three revenue categories (cannabis, distribution, and alcoholic beverages) grew sequentially over the prior quarter. It also sold 28% more weight than the 2021 fiscal first quarter. Cash cost to dry each gram of product decreased for the fifth straight quarter, to 0.79 in Canadian dollars ($0.62), down 9% from the previous quarter. 

Aphria CEO Irwin Simon will lead the combined company when it merges with Tilray. Simon said in a statement that the companies are on track to close the transaction by the end of June 2021. He added the merger will include over CA$100 million in pre-tax synergies. 

Shares of Aphria are moving nearly 20% higher today. Tilray shareholders will maintain their shares upon closing of the transaction, while Aphria shareholders will receive 0.8381 shares of Tilray for every Aphria share.

Aphria shareholders will own approximately 62 percent of the outstanding Tilray shares once the transaction is complete. 

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