Last week, Tilray, Inc. (TLRY) reported that it would reschedule the special shareholder meeting to take place April 30th and the change caught our attention.
At the meeting, Tilray shareholders will vote on the previously announced merger agreement with Aphria, Inc. (APHA.TO) (APHA) and we expect to see the transaction approved. On top of pushing back the date of the meeting, Tilray also lowered the amount of outstanding shares that need to be present to vote on the deal.
Today, Tilray filed an 8-k with the Securities and Exchange Commission (SEC) and outlined the proposal that would be voted on by shareholders. According to the filing, the proposals that will be voted on include the following:
- To consider and vote on a proposal to increase the number of authorized shares of Tilray from 743,333,333 shares to 900,000,000 shares
- To consider and vote on a proposal to issue Tilray Class 2 common stock to Aphria shareholders pursuant to the Arrangement Agreement
- To consider and approve, on an advisory (non-binding) basis, the compensation that may be paid to Tilray’s named executive officers that is based on or otherwise relates to the transactions contemplated by the merger agreement
- To approve the adjournment of the Tilray meeting to a later date or dates, if necessary or appropriate, to solicit additional proxies in the event there are not sufficient votes at the time of the special shareholder meeting
The cannabis sector has come off its 2021 highs and has recently been under pressure. Canadian Licensed Producers (LPs) have been especially impacted by this and during this time, both Aphria and Tilray have been under considerable pressure. We are bullish on the growth prospects of the combined company due to the leading leverage it would have in strategic international markets (Europe and the United States).
Once Tilray shareholders vote on the transaction, the deal should be completed shortly after and this is an event that we are closely following. If you are interested in learning more about the closing of the merger, please send an email to firstname.lastname@example.org to be added to our distribution list.
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