- Under terms of the deal, Aphria (APHA) owners will receive 0.8381 shares of Tilray (NASDAQ:TLRY) for each Aphria share they own, while Tilray owners will continue to hold their shares. Aphria will own about 62% of the combined company at close at about a 23% premium to Tilray's close yesterday.
- The merged company will be called Tilray and continue to trade under the symbol TLRY.
- From the PR: "The Combined Company, supported by low-cost, state-of-the-art cultivation, processing, and manufacturing facilities, will have a complete portfolio of branded Cannabis 2.0 products in Canada. Internationally, the Combined Company will be well-positioned to pursue growth opportunities with Aphria’s medical cannabis and distribution footprint in Germany, and Tilray’s European Union Good Manufacturing Practices (“EU-GMP”) low-cost cannabis production facility in Portugal, which has export capabilities and tariff-free access to the European Union (“EU”) to meet increasing global demand for medical cannabis. In the United States, the Combined Company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater Brewing Company (“SweetWater”), a cannabis lifestyle branded craft brewer, and Manitoba Harvest, a leading hemp food manufacturer and a pioneer in branded CBD and wellness products."
- The deal is seen closing in Q2 of 2021.
- A conference call is set for 8:30 ET.
- APHA +10%, TLRY +28% premarket.
- Peers: Canopy Growth (CGC) +3%, Cronos Group (CRON) +3.2%, Aurora Cannabis (ACB) +4.4%,
- This morning's announcement was leaked last night.