Tilray Files 8-K Highlighting The Path Forward For The Tilray/Aphria Mega-Merger

When compared to other mergers and acquisitions (M&A) in the cannabis industry, the Aphria Inc. (APHA.TO) (APHA) and Tilray, Inc. (TLRY) merger is one of the most significant transactions to be reported by the cannabis sector in recent years.

We considered the combined company to be a leading play on the global cannabis market and are bullish on its leverage to the European Union (EU). Once the acquisition is completed, we expect the combined company to find substantial synergies between the two businesses and consider this to be an attractive aspect of the story.

Today, Tilray filed an 8-K with the Securities and Exchange Commission (SEC) that covered the Aphria merger agreement and we wanted our readers to be aware of the filing. In the filing, the companies reported an amended merger agreement that provides for the following:

1. Aphria will convene and conduct a meeting in connection with the transaction, as promptly as reasonably practicable (no later than June 30^th)
2. Tilray will convene and conduct a meeting in connection with the transaction, as promptly as reasonably practicable (no later than June 30^th)
3. States that certain holders of Aphria’s outstanding restricted share units or deferred share units and certain holders of options to acquire Aphria shares will not exchange such securities for replacement securities from Tilray. Pursuant to provisions of Aphria’s benefit plans, such securities will be settled or exercisable for Tilray shares
4. Clarifies the requisite approval of Tilray shareholders that is required to complete the merger
5. Makes certain corresponding edits to the merger agreement to implement the foregoing

A Leading Cannabis Conglomerate in the Making

We believe the combined company is well positioned to compete with Canopy Growth Corporation (WEED.TO) (CGC) for a leadership position in Canada’s medical and recreational cannabis market and in certain international markets (especially in the EU).

Going forward, we would not be surprised if Canopy Growth made additional strategic acquisitions in the near term. We believe the Aphria-Tilray merger has accelerated the consolidation theme of the cannabis sector and expect to see additional acquisitions announced in the coming months.

We are bullish on the growth prospects that are associated with the Tilray-Aphria merger agreement and believe that our readers need to be aware of the opportunity. If you are interested in learning more about the Aphria-Tilray merger, please send an email to support@technical420.com with the subject “Aphria-Tilray Merger” to be added to our distribution list.

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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.

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