11 Key Details to Know After Tilray Voted in Favor of the Aphria Merger

The merger of the year is now complete…

At a special shareholder meeting on April 30^th, Tilray, Inc. (TLRY) shareholders voted in favor of a merger agreement with Aphria, Inc. (APHA.TO)(APHA), a leading Canadian Licensed Producer (LP).

The closing of the transaction will result in the formation of a new global cannabis powerhouse. One of the reasons we are excited about the merger is related to the terms of the agreement as well as the potential to recognize more than $50 million of synergies.

A lot has changed from the days when Aurora Cannabis Inc. (ACB.TO) (ACB) spent more than $7 billion to acquire CanniMed and MedReleaf (most of the transactions have been written off as Aurora Cannabis closed several facilities that were a part of the acquisitions.

Today, we want to highlight 11 important aspects of the Aphria-Tilray merger and believe our readers should be aware of these facts:

1. Tilray approved three out of four proposed amendments at the meeting
2. Aphria CEO Irwin Simon will lead the combined company
3. The combined company would use the Tilray name and ticker symbol
4. Aphria’s shareholders will own approx. 62% of the outstanding shares on a fully diluted basis
5. The combined company is expected to recognized approx. $100 million of annual pre-tax cost savings within two years of the completion of the transaction
6. In the US, the combined company will leverage Aphria’s acquisition of Sweetwater Brewing, a craft beer company, to introduce its brands through CBD-infused beverages ahead of a potential change to federal legislation
7. In the European Union (EU), the combined company should benefit from Aphria’s German medical cannabis business and its EU operations as well as Tilray’s cultivation and production assets in Portugal
8. The combined company will be well positioned to pursue growth opportunities with its end-to-end, EU GMP supply and distribution chain
9. Aphria shareholders will receive 0.8381 shares of Tilray for each common share
10. Tilray’s shareholders are not expected to see any adjustment to its holdings
11. The deal is expected to close in the second quarter of 2021

If you are interested in learning more about “Tilray and Aphria”, please send an email to support@technical420.com with the subject “Tilray and Aphria” to be added to our distribution list.

For the fastest access to data on the merger, you can sign up for our free newsletter!

Share

Tags

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Top Stories