The largest global cannabis company has now emerged as Tilray and Aphria join forces
As announced in advance, the day has finally arrived where two of the biggest companies in the cannabis industry have finally joined forces to become an absolute powerhouse. Aphria Inc. and Tilray, Inc. finally announced yesterday that the business combination process has come to an end and it is now the beginning of a new era in the cannabis industry worldwide.
The combined company will still operate under the Tilray name and will be two businesses with the best possible skills in the industry, which will be considered the leading consumer packaged goods company with the largest global geographic expansion in the cannabis industry. Following this merger, it is estimated to reach a market capitalization of approximately $8.2 billion based on closing stock prices on April 30, 2021.
The Nasdaq Global Select Exchange will still be listing Tilray’s Class 2 common stock and as of tomorrow it will begin trading on the Toronto Stock Exchange, both under the same ticker symbol “TLRY.” As previously agreed, each Aphria shareholder received 0.8381 of a Tilray share for each Aphria common share.
Irwin D. Simon, the company’s chairman and chief executive officer, commented, “Our focus is now on executing on our highest performance priorities, including business integration and accelerating our global growth strategy. The Covid-19-related roadblocks have presented unique challenges in the Canadian and German markets. As these markets begin to reopen, Tilray is poised to attack and transform the industry with our highly scalable operational footprint, select portfolio of diverse medical and adult-use cannabis brands and products, multi-continent distribution network, and strong capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders.”
It is expected that as a result of this combination we will now see the world’s largest cannabis company, a strategic footprint and operational scale, low-cost, state-of-the-art production and the leading Canadian producer of cannabis for adult use, and enhanced presence and infrastructure for consumer packaged goods in the US.