Tilray (Nasdaq: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in 15 countries spanning five continents. The move should leave the company with a credible claim to being the largest marijuana business in Canada, and it will contribute to Tilray's reputation as being one of the more acquisition-hungry competitors. Aphria and Tilray executives will host a conference call and webcast with a supplemental presentation to discuss the strategic business combination today, December 16, 2020 at 8:30 a.m. Eastern Time. The company owns SweetWater, a cannabis craft beer brewer, and Manitoba Harvest, a hemp, CBD and wellness products maker that has access to 17,000 stores in North America. In the United States, Tilray has a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater, a leading cannabis lifestyle branded craft brewer, and Manitoba Harvest, a pioneer in branded hemp, CBD and wellness products with access to 17,000 stores in North America. Uh-Oh. Each of Aphrias and Tilrays respective board of directors has unanimously approved the Agreement and the Arrangement. This is some 80s arbitrageur shit going down. Canadian cannabis companies Tilray Inc. and Aphria Inc. announced the closing of their merger on Monday, creating the world's biggest weed company measured by revenue. Establishes an Unrivaled European Platform:The Combined Company will be well-positioned to pursue growth opportunities with its end-to-end EU-GMP supply chain and distribution, which includes Aphrias German medical cannabis distribution footprint and Tilrays 2.7 million square foot European EU-GMP low-cost cannabis cultivation and production facility in Portugal. The transaction was structured as a reverse acquisition, where Aphria acquired Tilray. 2 2021, Published 8:51 a.m. For more information, visit: www.Tilray.com, Investors The division has a presence in 27 states. Finally, the new entity will be positioned nicely in the U.S. market. Both stocks jumped after the announcement as markets welcomed consolidation in an industry marred by perennial losses. Following its blockbuster merger with Aphria, Tilray continues its M&A streak and grows its revenue and geographic reach considerably. Toronto-listed Aphria shares were virtually flat at $17.81. This is why Aphrias merger with Tilray is so critical. Tilray generated free cash flow of $3.3 million, compared to a cash burn of $28.3 million a year earlier. Our business combination with Tilray aligns with our strategic focus and emphasis on our highest return priorities as we strive to generate value for all stakeholders., I am honored to work with Brendan Kennedy, a pioneer in the cannabis industry, and the Tilray team as they join forces with our talented employees at Aphria, continued Mr. Simon. The companies are expecting the new combined company which will operate as Tilray to generate pretax cost-saving synergies of $81 million within 18 months of closing. We believe that the Company has the strategic footprint and operational scale necessary to compete more effectively in todays consolidating cannabis market with a strong, flexible balance sheet, strong cash balance, and access to capital, which we believe will give the Company the ability to accelerate growth and deliver long-term sustainable value for stockholders. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. We as well onlynstock I'm in 40k on it now joke I'm since Aphria I have a good job and can hold long term but it is depressing some days Reply . The Tilray/Aphria merger must be at risk of falling apart. The all-stock deal, billed as a "reverse acquisition" of Tilray by the companies in a presentation to investors, will see Aphria shareholders receive 0.8381 shares of Tilray for each Aphria share . Offers may be subject to change without notice. Many investors are now wondering what happened to Aphria and Tilray stocks after the merger. +0.71% This actually presents an arbitrage opportunity, in which an investor can short Tilray and buy Aphria to lock in a gain. Theoretically, Aphria stock should have traded at 0.8381 times what Tilray traded at before the merger. Now the enthusiasm for the U.S. market may be overly optimistic. The merger was announced on December 16, 2020 and I assume they're still looking to merge as the deal makes a lot of sense in terms of market share and cost synergies. And it is global. Stock Market 101 ; Types of Stocks ; Stock Market Sectors ; Premium Services This press release features multimedia. Markets Each of Aphrias and Tilrays respective directors and officers and certain principal Tilray Stockholders have entered into voting support agreements agreeing to vote their Aphria Shares or Tilray Shares, as applicable, in favor of the resolutions put before them pursuant to the Agreement. Creates the Leading Canadian Adult-Use Cannabis Licensed Producer: Together, Aphria and Tilray will be the leading adult-use cannabis Canadian Licensed Producer based on revenue for the last twelve months by combining their respective brands, distribution networks and world-class facilities. Substantial Synergies. The Motley Fool recommends Hexo Corp. The trouble is, when it announced in late 2020 its planned merger with Aphria, another major Canadian cannabis business, the pair controlled a total of . There is also a razor-thin majority in the Senate. Aphria and Tilray use words such as forecast, future, should, could, enable, potential, contemplate, believe, anticipate, estimate, plan, expect, intend, may, project, will, would and the negative of these terms or similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Aphria Inc. is a leading global cannabis company inspiring and empowering the worldwide community to live their very best life. On April 10, Tilray Brands (TLRY -0.20%) advanced the consolidation of the marijuana industry one step further when it announced that it was acquiring Hexo, an underperforming Canadian cannabis operator. Aphria has a strong presence in Germany which is the only European country with medical marijuana, so . And the company still isn't profitable, it still isn't growing its top line very quickly year over year, and it's still burning cash every quarter. For instance, Aphria stock was trading around 0.4115 times Tilray on Feb. 10less than half of what it should be trading at based on the merger terms. On Dec. 16, 2020, Aphria (APHA) and Tilray (TLRY) announced a merger that has created the worlds largest cannabis company. Investors and security holders of Aphria and Tilray are urged to carefully read the entire management information circular and proxy statement (including any amendments or supplements to such documents), respectively, when such documents become available before making any voting decision with respect to the proposed transaction because they will contain important information about the proposed transaction and the parties to the transaction. Cost basis and return based on previous market day close. has gained 44% and the S&P 500 This process is automatic. Copies of these documents may be obtained, free of charge, from the SEC or Tilray as described in the preceding paragraph. Under the terms of the Arrangement, the shareholders of Aphria (the "Aphria Shareholders") will receive 0.8381 shares (the "Exchange Ratio") of Tilray for each Aphria common share (each . *Average returns of all recommendations since inception. Likewise, the stock market heavily disfavors marijuana companies and unprofitable companies at the moment, and Tilray falls into both of those buckets. patricia de melo moreira/Agence France-Presse/Getty Images, J&J, Goldman and Walgreens take brunt as Tuesdays blue-chip losses intensify, Fund managers havent been this pessimistic all year: B. of A. survey, U.S. cannabis producers are now favored by Wall Street analysts, whove soured on Canadian companies, New Yorks 13% cannabis tax may be too high, since state has one of the most sophisticated black markets in U.S., expert says, Employees asked about canceled bonuses. Tilray shareholder." Michael A. Gayed, CFA on Instagram: "Aphria shareholders overwhelmingly voted in support of a merger with Tilray. Having a cost advantage is extremely important especially as markets get saturated. The recent reverse merger acquisition of Tilray announcement by Aphria provides an intriguing pseudo-arbitrage opportunity. While it could still become the most important marijuana business internationally in due time, reaching that goal is a plan that's in progress at the moment. The forward-looking statements included in this news release are made as of the date of this news release and neither Aphria nor Tilray undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. The reverse merger with Tilray will see Aphria shareholders get 0.8381 shares of Tilray for each Aphria share they own, while owning 62% of the combined company, which on a pro forma basis had . In the event of federal permissibility, the Company expects to be well-positioned to compete in the U.S. cannabis market given its existing strong brands and distribution system in addition to its track record of growth in consumer-packaged goods and cannabis products. ET on Thursday. Now that the Aphria/Tilray merger has been announced, we can expect other top-tier Canadian pot stocks, like Canopy Growth Corp (NASDAQ:CGC) and Aurora Cannabis Inc (NYSE:ACB), to begin to see . 2023 InvestorPlace Media, LLC. The last issue with buying Hexo is that three of its four marijuana brands are targeted toward the value segment of the market. The company will receive 0.8381 shares of Tilray and get about 62% of the ownership of the new entity. The new entity will be the clear leader in the Canada market, which has continued to see strong growth. The webcast will be archived for 30 days. Material risks that could cause actual results to differ from forward-looking statements also include the inherent uncertainty associated with the financial and other projections; the prompt and effective integration of the Combined Company; the ability to achieve the anticipated synergies and value-creation contemplated by the proposed transaction; the risk associated with Aphrias and Tilrays ability to obtain the approval of the proposed transaction by their shareholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all; the risk that a consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; the outcome of any legal proceedings that may be instituted against the parties and others related to the Arrangement Agreement; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; risks relating to the value of Tilrays common stock to be issued in connection with the transaction; the impact of competitive responses to the announcement of the transaction; and the diversion of management time on transaction-related issues. : www.Tilray.com, Investors the division has a presence in 27 states, Investors the has! 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