Cannabis plants grow in a greenhouse at a Aphria Inc. facility. Source: Wye Communications
- Aphria to pay a 23% premium on Tilray’s Dec. 15 closing price
- New company to retain Tilray’s ticker and trade on the Nasdaq
Tilray Inc. and Aphria Inc. agreed to combine their operations, forming a new giant in the fast-growing cannabis industry.
The all-stock deal, which puts together two of the market’s best known names, will create an entity with an equity value of about C$4.8 billion ($3.8 billion), according to a statement and interviews late Tuesday with Tilray and Aphria leaders. The combined group’s 12-month sales of C$874 million surpasses that of industry leaders such as Curaleaf Holdings Inc. and Canopy Growth Corp.
The new company will keep Tilray’s name and trade under its ticker on the Nasdaq, and Aphria shareholders will own 62% of Tilray’s stock under the terms of the transaction, which was characterized as a “reverse acquisition of Tilray.” Ontario-based Aphria will pay a 23% premium to Tilray’s Dec. 15 closing price of $7.87.
“I realized that Aphria needed to expand out of Canada, and merging with Tilray was a great answer because it’s a U.S.-domiciled business with great international assets,” said Aphria Chief Executive Officer Irwin Simon, who will be chairman and CEO of the combined group.
Aphria gained as much as 6.5% Wednesday in New York, while Tilray rose as much as 26%.
To Read The Rest Of This Article By Tiffany Kary on Bloomberg
Published: December 16, 2020
Founder & Interim Editor of L.A. Cannabis News
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