Canadian Manufacturing

Aphria and Tilray to merge, will use Tilray name moving forward

The companies said the deal will give them a pro forma revenue of $874 million and see the new Tilray control more than 17 per cent of the retail cannabis market

December 16, 2020  The Canadian Press

Two of Canada’s most prominent cannabis companies are combining in a blockbuster deal that will see the pair become the world’s largest pot firm based on revenue and control the largest share of the country’s retail market.

Leamington, Ont.-based Aphria Inc. and Nanaimo-based Tilray Inc. said on Dec. 16 that they will merge under the Tilray name — a move they say will help them unlock $100 million in savings and position them to dominate in the Canadian and U.S. markets.

“This transaction brings together two leading cannabis companies, creating a clear global leader, strengthening our global footprint and positioning the new Tilray for further growth,” Tilray chief executive Brendan Kennedy told a conference call with financial analysts.

Under the agreement, Aphria will receive 0.8381 shares of Tilray for each Aphria common share, while Tilray’s shareholders will see no adjustment to their holdings.

Advertisment

Once the deal is complete, Aphria’s shareholders will own about 62 per cent of the outstanding Tilray shares on a fully diluted basis.

Aphria chairman and chief executive Irwin Simon will lead the combined company, while Tilray’s Kennedy will sit on the new company’s nine-person board, alongside seven others from Aphria and one more person from Tilray.

The companies said the deal will give them a pro forma revenue of $874 million and see the new Tilray control more than 17 per cent of the retail cannabis market — the largest share held by any Canadian licensed producer.

Most of the country’s largest cannabis companies, including rivals Aurora Cannabis Inc. and Canopy Growth Corp., have spent the year laying off thousands of workers, shuttering facilities and taking multimillion-dollar writedowns.

The new Tilray wants to position itself to take advantage of the market and will maintain offices in New York and Seattle, in addition to Toronto, Leamington, Vancouver Island, Portugal and Germany.


Print this page

Related Stories