Tilray, Aphria Close Merger, Create The 'New' Tilray

Tilray, Inc. TLRY and Aphria, Inc. APHA have merged after months of negotiations, creating a company with a combined market cap of $3.3 billion.

The two Canadian cannabis giants had been in talks since December with Aphria’s current CEO Irwin Simon to create a new enterprise.  

In April, Aphria shareholders finally voted in favor of the merger. Tilray shareholders followed suit and approved the transaction on Friday.

The Merger Deal: Under the deal, each Aphria shareholder received 0.8381 of a Tilray share for each Aphria common share held on April 30.

  • The resulting company, which is expected to generate roughly $81 million in annual pre-tax cost synergies within the next eighteen months, kept the Tilray name and will continue to trade on Nasdaq Global Select Exchange under the ticker symbol TLRY.

The company is also poised to debut on the Toronto Stock Exchange under the ticker symbol “TLRY” on Wednesday, May 5.

Why It Matters: The new cannabis-focused CPG company will utilize Tilray’s consumer packaged goods presence which relies on SweetWater, a cannabis lifestyle branded craft brewer, hemp as well as CBF brand Manitoba Harvest, which is available in over 17,000 stores in North America.

Moreover, the company will continue to boost its international presence by utilizing its medical cannabis brands, distribution network in Germany and the European Union’s Good Manufacturing Practice supply chain.

Tilray announced recently that it will soon be entering the Portugal market after obtaining all regulatory and market permits to offer its medical cannabis products to consumers in the southern European country.

“Our focus now turns to execution on our highest return priorities, including business integration and accelerating our global growth strategy,” Simon said Monday.

“Our global team is laser-focused on turning potential into performance and addressing consumer and patient needs for safe, innovative, and high-quality products,” he added.

The leadership team of the newly combined company includes:

  • Irwin D. Simon, chairman and CEO
  • Carl Merton, chief financial officer
  • Denise Faltischek, head of international and chief strategy officer
  • Jim Meiers, president of Canada operations
  • Jared Simon, president at Manitoba Harvest and Tilray Wellness
  • Rita Seguin, chief human resources officer
  • Dara Redler, interim chief legal officer and corporate secretary
  • Berrin Noorata, chief corporate affairs officer
  • Lloyd Brathwaite, chief information officer
  • Freddy Bensch, CEO of SweetWater

The board of directors of the merged enterprise, which Simon will chair, includes:

  • Renah Persofsky, ICD.D, vice-chair (lead director) and chair of the nominating and governance committee and independent director
  • Jodi Butts, nominating and governance committee member and independent director
  • David Clanachan, newly appointed independent director
  • John M. Herhalt, chair of the audit committee and independent director
  • David Hopkinson, member of nominating and governance committee, compensation committee and independent director
  • Brendan Kennedy, current director and former CEO at Tilray
  • Tom Looney, member of audit committee and compensation committee and independent director
  • Walter Robb, chair of the compensation committee, member of audit committee and independent director

Watch Benzinga Cannabis Insider: CEO Irwin Simon Breaks Down The Tilray-Aphria Merger

Photo by Roberto Valdivia on Unsplash

 

Posted In: . SimonIrwin DmergerCannabisM&ANewsTopicsMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.