Lets take a look at the bought deal and what to expect. Bought deal was announced today for the issuance of Approx 19 million shares @ a price of $11.85 ps for total proceeds of 225 million - 258 million. What impact will this have on the company? When compared to
this chart is officially no longer valid. It does not take into consideration an event such as a bought deal. I've gone ahead and looked at historical data, when compared to bought deal financing, from Alcohol / MJ sector and averaged the percentages out. Its not a true representation of what may happen tomorrow, but its the best I can do atm. Expect an open around 12.30$ ps tomorrow, followed by continued pressure to a low of 11.79$ (Hint: Buying opportunity) and by days end, guess what, the stock ends on a positive note: Expect a high of 13.42 before closing around 13.05 ps. June 7th, expect an open around 12.47$ ps, followed by, once again continued pressure to a low of 12.14$ ps (Hint:Buying opportunity) and by days end, guess what, the stock ends again on a positive note: expect a high of 14.00 ps (Unlikely, but we'll see) and a close of 13.15 for the day. June 8th - final day analyzed, expect an open around 12.67$ ps followed by, once again continued pressure to a low of 12.16 and by days end, guess what, the stock ends again on a positive note: expect a high of 13.65 ps and a close of 13.05 for the day. Now, I do want to mention, 11.85$ is the moving average of the past two weeks, its not a bad deal for the bought deal, its not a good deal either, its a fair deal. As, such the share price will reflect a more bearish sentiment with bullish continuation. By no means, will this bullish run be over, it just means, your not going to see the double digit gains, while others in the sector are receiving them. We reached out to Aphria and spoke to Dr. Phil W this evening to grab his prospective of the deal. Unfortunately, he was not willing to divulge information on the bought deal. But, what he did mention was comforting. I simply asked whats with the bought deal? His answer, 'You have a 2500$/month of income and your looking for a higher paying job. You find one that pays 5000$ /month but you need 5,000$ $ to buy the car to get to your new job. You factor in living costs of 1500$, Food for 500$, New pair of shoes that cost 100, entertainment for 200$, what your left with is 200$ - not enough to buy that new car. Sure you can save that 200$ each month and have $5000 saved in two years time; or you can go out and buy that car for 5000$ with a loan and secure that high paying job that's available NOW and have the same amount (2400$) saved in just 1 month? (end quote). To say the least, Aphria has a deal already in place. That wasn't hard to gather and by the sound of it, we're all going to hear about it shortly.
