I currently own 1279 shares of Aphria stock worth $9920, as of today. They say we will gain 0.8381 shares of Tilray stock for each share of Aphria stock we own. a) Does that mean that I give up my 1279 shares Aphria stock for only 1072 shares of Tilray (1279 X .8381 = 1072) and take a loss? B) Does it mean I get in addition to my 1279 shares of Aphria stock I also get 1072 shares of Tilray? If the answer is "A" and I'm going to take a loss should I sell my stock just before the merger happens in the 2nd quarter of 2021?
It is A but you are not saddled with a loss because currently TLRY is $9.14 a share while APHA is less $7.80 a share. Usually people hold the new stock after a merger because it's like they are still holding their old company plus more. In your case Aphria is being added to Tilray. Just make sure Tilray's management is at least as competent.
