Following the completion of the merger between Aphria, Inc. and Tilray, Inc. (TLRY.TO) (TLRY), CEO Irwin Simon received a compensation package that will allow him to receive more than 2.3 million shares of Tilray (according to a Form 4 filed with the SEC). The compensation that was issued to him was from his former agreement with Aphria. Since Tilray is now the controlling entity, the compensation was converted to Tilray shares.
At current levels, the pay package is worth more than $37 million (based on Tilray’s closing price on May 5th). Although the size of the pay package is significant, Simon was chosen to be the CEO of the combined company and is highly vested in the long-term success of the business.
Denise Faltischek serves as the Chief Strategy Officer (CSO) and the Head of International Business for Tilray. According to a Form 4 filed with the SEC, Denise received a compensation package that will allow her to receive more than 350,000 shares of Tilray and we consider this to be a reasonable sized package based on her role with the company. The compensation that was issued to him was from his former agreement with Aphria. Since Tilray is now the controlling entity, the compensation was converted to Tilray shares.
The closing of the merger agreement represents a major milestone for the entire cannabis industry. Over the next year, we expect to see additional merger of large-scale cannabis operators to compete with the likes of Canopy Growth Corporation (WEED.TO) (CGC) and Tilray.
The combination of Aphria and Tilray created a company that has substantial resources to capitalize on the global cannabis market. Although many people like to talk about how the transaction strengthen Tilray’s balance sheet, we believe there was a vast improvement in the amount of human capital as a results of the transaction.
Most recently, Tilray appointed Dara Redler, a former Coca-Cola Co (KO) lawyer, as the new interim Chief Legal Officer. She previously served as Tilray’s general counsel and we are favorable on the expertise that she brings to the combined company.
During the last year, we have seen a drastic increase in consumer demand for cannabis infused beverages (CBD and THC). Prior to the merger being announced, Aphria acquired SweetWater Brewing Company, a craft brewer. Based on Redler’s experience at Coca-Cola, we believe she has unique expertise to support the company’s focus on the cannabis beverage market.
From a revenue standpoint, the combination of Aphria and Tilray created the world’s largest legal cannabis company. We are favorable on the assets that are owned by the combined company and believe that CEO Simon is the right person to be at the helm of it.
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This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws, including statements related to the Company’s ability to support its continued growth and fund the business’ sales and financial goals for at least the remainder of fiscal 2021 with proceeds remaining from its recent offering. While these forward-looking statements represent the Company’s current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially, including risks and uncertainties associated with market conditions. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company’s management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “expect”, “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements.