Aphria and Tilray set to merge, becoming the largest company in the cannabis space

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The two cannabis giants are finalizing an all-stock merger deal

Two of the largest operators in the cannabis industry have just made a deal to merge and become the largest single marijuana business on the planet. Aphria Inc., a global cannabis company, and Tilray Inc., a cannabis research, cultivation, production and distribution company, have just announced that they have “entered into a definitive agreement to combine their businesses in order to create the world’s largest global cannabis company based on pro forma revenue.”

The merger is pursuant to a plan of arrangement under the Business Corporations Act, and the implied pro forma equity value of the combined companies is approximately $3.93 billion, based on the share price of Aphria and Tilray when the market closed on December 15.

The new company will then become a truly global company, with offices in New York and Seattle in the US, and in Toronto, Lamington and on Vancouver Island in Canada. They also have offices set up in Portugal and Germany operating under the Tilray corporate name with shares trading on NASDAQ under ticker symbol TLRY.

The newly-created company will be supported by low-cost, state-of-the-art cultivation processing and manufacturing facilities and will offer a complete portfolio of branded cannabis 2.0 products in Canada.

Internationally, the combined company will be pursuing 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. The facility in Portugal has export capabilities and tariff-free access to the EU to meet the increasing global demand for medical cannabis.