There is a risk that some or all the expected benefits of the Arrangement may fail to materialize or may not occur within the time periods anticipated by Aphria and Tilray. In an all-stock deal agreed to last . Tilray shares In addition, the Combined Company will have a complete breadth of products in every major cannabis category, including flower, pre-roll, oils, capsules, vapes, edibles and beverages. The Company is well-positioned to pursue international growth opportunities with its strong medical cannabis brands, distribution network in Germany, and end-to-end European Union Good Manufacturing Practices (EU-GMP) supply chain, which includes its production facilities in Portugal and Germany. Aphria (APHA) and Tilray (NASDAQ:TLRY) are merging.Combined, the two companies are likely to save money - the main focus of the press releases - but it will take some time until those savings . The market capitalization is now about $6 billion. The last issue with buying Hexo is that three of its four marijuana brands are targeted toward the value segment of the market. Cannabis does look like a secular growth market. Yet the terms of the deal look more advantageous to Aphria. On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. People may receive compensation for some links to products and services on this website. Aphrias CC Pharma division is a leading importer and distributor in Germany. Copyright 2023 Market Realist. In Canada, the combination of Aphria and Tilray will create the leading adult-use cannabis company with gross revenue of C$296 million (US$232 million) in the adult-use market for the twelve months reported by each company. Aphria Inc. shareholders have voted in favour of the cannabis company's plan to merge with Tilray Inc. Leamington, Ont.-based Aphria did not immediately announce how many shareholders voted in . 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. Then the company deactivated his account. For a more detailed discussion of risks and other factors, see the most recently filed annual information form of Aphria and the annual report filed on form 10-K of Tilray made with applicable securities regulatory authorities and available on SEDAR and EDGAR. Complementary, Scalable Medical and Adult-Use Cannabis Businesses Strengthen Leadership Position in Canada; Expands U.S. and International Reachthrough World-Class Cultivation, Manufacturing, Diversified Product Portfolio and Distribution Footprint, Robust Supply Chain and Operational Efficiencies Expected to Generate Approximately C$100 Million of Pre-Tax Annual Cost Synergies, Aphria and Tilray to Host a Conference Call and Webcast at 8:30 a.m. Eastern Time. Having a cost advantage is extremely important especially as markets get saturated. He is also the founder of. The deal is pursuant to a plan of arrangement (the Arrangement) under the Business Corporations Act (Ontario), and the implied pro forma equity value of the Combined Company is approximately C$5.0 billion (US$3.9 billion), based on the share price of Aphria and Tilray at the close of market on December 15, 2020. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Headquartered in Leamington, Ontario the greenhouse capital of Canada Aphria Inc. has been setting the standard for the low-cost production of high-quality cannabis at scale, grown in the most natural conditions possible. Is Tilray Stock a Buy With Its Acquisition of Hexo? 1 Based on the most recently reported quarterly financial statements for Aphria and Tilray.2 Non-GAAP measure which may not be consistent between companies in our industry. The combined company had a market cap of approximately US$8.2 billion based on the closing stock prices on April 30, 2021. A pioneer in cannabis research, cultivation, and distribution, Tilrays unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages. The bulk of . Forward-looking statements involve significant known and unknown risks and uncertainties. The transaction was structured as a reverse acquisition, where Aphria acquired Tilray. Additional Information About Tilray and Where to Find It. All rights reserved. LEAMINGTON, Ontario & NANAIMO, British Columbia--(BUSINESS WIRE)--Dec. 16, 2020-- Aphria Inc. (Aphria) (TSX: APHA and Nasdaq: APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, and Tilray, Inc. (Tilray) (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced that they have entered into a definitive agreement (the Agreement) to combine their businesses and create the worlds largest global cannabis company (the Combined Company) based on pro forma revenue1. With a strong financial profile, low-cost production, leading brands, distribution network and unique partnerships, we believe the Combined Company will be well-positioned to deliver sustainable, attractive returns for stockholders. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. Yet there are also major business synergies with the merger. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. https . Substantial Synergies: The combination of Aphria and Tilray is expected to deliver approximately C$100 million of annual pre-tax cost synergies within 24 months of the completion of the transaction. The Agreement includes certain reciprocal customary provisions, including covenants in respect of the non-solicitation of alternative transactions, a right to match superior proposals and C$65million (US$50 million) reciprocal termination fee payable under certain circumstances. 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. Management claims that there should be around $25 million in annual cost synergies to realize after the purchase is complete, but it's unclear how long that will take to occur. The news comes one business day after shareholders of the previous version of Tilray voted in favor of the deal. Following the completion of the Arrangement, the Combined Company will have principal offices in the United States (New York and Seattle), Canada (Toronto, Leamington and Vancouver Island), Portugal and Germany, and it willoperate under the Tilray corporate name with shares trading on NASDAQ under ticker symbol TLRY. Tilray-Aktie gibt vorbrslich krftig ab: Tilray mit hherem Verlust als erwartet Quartalsbilanz Der Cannabis-Konzern Tilray hat am Montagabend nach US-Brsenschluss seine Bcher zum dritten . Interestingly enough, based on these terms, APHA stock is trading at a discount. But this could be a conservative number. Material risks and uncertainties that could cause actual results to differ from forward-looking statements include the inherent uncertainty associated with the financial and other projections a well as market changes arising from governmental actions or market conditions in response to the COVID-19 public health crisis; the prompt and effective integration of the Company; the ability to achieve the anticipated synergies and value-creation contemplated by the business combination; the response of business partners and retention as a result of the business combination; the impact of competitive responses to the business combination; and the diversion of management time on business combination-related issues. Investor Relationsinvestors@aphria.com, Tilray contacts: Media Amy Bonwick, 647-515-3748amy@pomppr.com, Investors Raphael Gross 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 . In Canadas C$3.1 billion adult-use, retail market3, the Combined Company will have one of the lowest cost production operations with its state-of-the-art facilities. View source version on businesswire.com: https://www.businesswire.com/news/home/20201216005519/en/, Aphria contacts: Media Tamara Macgregor Markets First, the terms of the deal will mean that their shares get a bit diluted. As part of the deal, Aphria paid a premium of 23 percent over Tilrays Dec. 15 closing price. Learn More. Tilray will host a special shareholder meeting on April 16 th and we are excited for the merger to be completed. has gained 11.7%. Tilray Inc. and Aphria Inc. agreed to combine their operations, forming a new giant in the fast-growing cannabis industry. Die Aktie von Tilray (ex Aphria) zhlt am Dienstagvormittag zu den bestplatzierten des Tages. Well, I think the deal will be transformative for APHA stock and has the potential to lead to strong long-term gains. Copyright | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Tilray stock has fallen sharply from the peaks. Analyst Report: Tilray Brands, Inc.Tilray is a Canadian producer that cultivates and sells medical and recreational cannabis. Holders of Tilray Shares prior to the completion of the transaction continue to hold their Tilray Shares with no adjustment as a result of the transaction. 437-343-4000, Investors Making the world smarter, happier, and richer. We are bringing together two world-class companies that share a culture of innovation, brand development and cultivation to enhance our Canadian, U.S., and international scale as we pursue opportunities for accelerated growth with the strength and flexibility of our balance sheet and access to capital, said Mr. Simon. Tilray generated free cash flow of $3.3 million, compared to a cash burn of $28.3 million a year earlier. Offers may be subject to change without notice. She is based in New York. Certain material factors or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. In Portugal, Tilrays EU-GMP cultivation and production facility will provide the Combined Company with the capacity to cultivate and produce medical cannabis products in order to meet international demand and has export capabilities, which provides tariff-free access to the EU. As for Tilray, it has a strong business in Portugal. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. After the merger completion, the new entity trades under Tilrays ticker symbol, TLRY on both the US and Canadian stock exchanges. 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. The Combined Company is expected to leverage SweetWaters craft beer manufacturing and distribution network to build brand awareness for the Combined Companys leading brands via craft beers, hard seltzers, and other beverages as it seeks to take advantage of opportunities for both the adult-use and health and wellbeing beverage trends. Nothing short of a trainwreck and I have been sounding the alarms since they admittedly cooked the books with the Aphria merger (see the actual admission in the press release and call). Certain information in this communication constitutes forward-looking information or forward-looking statements (together, forward-looking statements) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. When it does exist, it could become the world's biggest cannabis company eclipsing Canopy Growth by market cap.. Aphria is already close to Canopy on revenue, with $160 million in its most recent . The Company expects to deliver approximately US$81 million (C$100 million) of annual pre-tax cost synergies within eighteen months and plans to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, and corporate expenses. Jefferies LLC provided a fairness opinion to the Board of Directors of Aphria on December 15, 2020, stating that, as of the date of such opinion and based upon the scope of review and subject to the assumptions, limitations and qualifications stated in such opinion, the Exchange Ratio is fair, from a financial point of view, to the Aphria Shareholders. The record date for determining the Aphria Shareholders and the Tilray Stockholders entitled to receive notice of and vote at the Aphria Meeting and the Tilray Meeting, respectively, was . Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. This includes leveraging Aphria and Tilrays proven distribution networks in Canada to sell SweetWaters 420 cannabis lifestyle brand in Canada. Generally, when a company decides to buy another at a premium, the acquiring company's stock price falls. Nothing short of a trainwreck and I have been sounding the alarms since they admittedly cooked the books with the Aphria merger (see the actual admission in Michael Bowen sur LinkedIn : Tilray discloses $1.2B quarterly loss, plan to buy cannabis rival Hexo for