Here's why. The combined company, which will operate as Tilray (the Company), brings together two highly complementary businesses to create the leading cannabis-focused consumer packaged goods (CPG) company with the largest global geographic footprint in the industry. Additional Information About Tilray and Where to Find It. I look forward to leading the talented teams of both Aphria and Tilray as we seek to create a leading global cannabis and consumer packaged goods company with a portfolio of medical, wellness and adult-use brands consumers love., Mr. Kennedy, Tilrays Chief Executive Officer, commented, We are thrilled to bring together two cannabis industry leaders. In connection with the proposed transaction, Aphria will file a management information circular, and Tilray will file a proxy statement on Schedule 14A containing important information about the proposed transaction and related matters. Aphria ()() shareholders have voted in favour of the reverse acquisition of rival Canadian pot producer Tilray ().The decision helps pave the way for the blockbuster deal announced in December to form the world's largest pot company by revenue. has gained 11.7%. Tilray shareholder." Michael A. Gayed, CFA on Instagram: "Aphria shareholders overwhelmingly voted in support of a merger with Tilray. CMA - Competition & Markets Authority - Amazon / iRobot merger inquiry - on 18th April 2023 at 6:12 am; CMA - Competition & Markets Authority - Amazon / iRobot merger inquiry - on 6th April 2023 at 4:30 am; CMA - Competition & Markets Authority - Investigation into Amazon's Marketplace - on 31st March 2023 at 9:01 am During the second quarter of 2021, they will merge to become one company (I hope). Then there is the thriving medical business, which has a global footprint. Lets take a look at three reasons for this. Electric-vehicle tax credit: See which EVs qualify on updated list, She's a self-taught real estate investor turned millionaire, If King Dollar is wobbling, this asset is your best investment, says Citi, Mark Zuckerbergs total 2022 pay rose because of the increased use of private aircraft. But the opportunity in the U.S. could easily boost these numbers. On December 16th, Aphria (TSX: APHA) (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) announced a pending stock-based merger. Tilray and Aphria Close Merger. Third Quarter Performance. 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 . Article printed from InvestorPlace Media, https://investorplace.com/2021/03/why-the-aphria-tilray-merger-will-be-a-winner-apha-stock/. Yet the terms of the deal look more advantageous to Aphria. The required two-thirds majority of Aphria shareholders backed a motion to approve the deal at a virtual meeting on Wednesday. The estimate is that they could hit about $78 million within the next couple years. The Motley Fool recommends Hexo Corp. The Combined Company, supported by low-cost, state-of-the-art cultivation, processing, and manufacturing facilities, will have a complete portfolio of branded Cannabis 2.0 products in Canada. The third thing is that after the acquisition, Tilray will control an estimated 12.9% of the Canadian cannabis market, up from its 8.1% share today. She is based in New York. This includes leveraging Aphria and Tilray's proven distribution networks in Canada to sell SweetWater's 420 cannabis lifestyle brand in Canada. 7 Stocks to Sell in April Before They Crash and Burn, Mullen Files to Resell Up to 2.1 Billion Shares of MULN Stock, 7 Dividend Stocks to Buy That Are Backed by Strong Cash Flows, 3 Reasons Why the Aphria-Tilray Merger Will Be a Winner. Tilray generated free cash flow of $3.3 million, compared to a cash burn of $28.3 million a year earlier. 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. The service requires full JavaScript support in order to view this website. Tilrays new leadership team and board of directors will provide a strong foundation for the Company to accelerate growth and capitalize on the business combinations many benefits. Other information regarding the participants in the Tilray proxy solicitation and a description of their direct and indirect interests in the proposed transaction, by security holdings or otherwise, will be contained in such proxy statement and other relevant materials to be filed with the SEC in connection with the proposed transaction. The transaction was structured as a reverse acquisition, where Aphria acquired Tilray. The merger has already been completed after some delay, and Aphria shares had a name change. The all-stock deal, which puts together two of the market's best known . 2 2021, Published 8:51 a.m. Certain material factors or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Tilray to strike US$250M deal to buy Hexo: Sources - BNN Bloomberg. Tilray's Takeover. 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. Please enable JavaScript to view the page content.<br/>Your support ID is . 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. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. Tilray Inc. shareholders approved the merger with Aphria Inc., creating a cannabis powerhouse that's both the largest medical marijuana company in Europe and a major player in Canada's . The service requires full cookie support in order to view this website. 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. Consider that the price went from $5.50 to $20. But this is certainly a sophisticated strategy. Tilray Brands Consolidates Hold: Profits Will Drive Shares Higher . Tilray, for its part, has already used this business development strategy to markedly increase its market share in Canada through the 2021 merger with Aphria, and then again with its latest . 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. Enhances Consumer Packaged Goods Presence and Infrastructure in the U.S.: In the United States, the Combined Company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater, a 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. 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. The Combined Company will be led by a best-in-class management team and board of directors, with strong track records in consumer-packaged goods and cannabis experience internationally. Your support ID is: 3409538128455382982. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. This is some 80s arbitrageur shit going down. ET, 4 Reasons to Stay Far Away From Tilray Brands Stock, Why Tilray Stock Sank and Moved the Canadian Cannabis Market Today. The continued use of Tilray as the Companys name evokes hard work and hope til shortened from tilling the soil and ray as in a ray of sunshine. This includes leveraging Aphria and Tilrays proven distribution networks in Canada to sell SweetWaters 420 cannabis lifestyle brand in Canada. Of course, the timing of this rally coincides with the presidential election. 203-682-8253 Tilray (TLRY) and Aphria (APHA) both do something with cannabis. Theoretically, Aphria stock should have traded at 0.8381 times what Tilray traded at before the merger. Growing legalization and adoption of cannabis for the . Markets Aphria will also have seven directors and Tilray will have two. 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 . On Stocktwits, a user named tyler3535 has argued that Tilray would have to lose half of its value based on the merger ratio. Get Out Now. The bulk of . Operational Efficiencies Expected to Generate Approximately US$81 Million Annual Pre-Tax Cost-Saving Synergies for New Tilray Within Eighteen Months, Irwin D. Simon, Aphrias Chairman and CEO, will Lead the New Tilray and Has Appointed New Executive Leadership Team; New Members of the Board of Directors Also Appointed, New Tilray Poised to Transform the Global Cannabis Industry as a Consumer Packaged Goods Powerhouse with a Diversified Portfolio of Leading Brands, Renewed Financial Strength to Drive Accelerated Growth Strategy and Sustained Profitability, Tilrays Shares Will Continue Trading on the NASDAQ Under Symbol TLRY; Starting May 5, 2021, Tilrays Shares Will Commence Trading on the Toronto Stock Exchange Under Symbol TLRY. Recreational marijuana sales are expected to soar if marijuana is legalized at the federal level in the U.S., a real possibility now that Democrats control the Senate. Tilray is a pioneer navigating toward the end of prohibition and built to deliver on the collective wellbeing of the Companys employees, consumers, patients, partners, and local communities. The CEO replied, Leave Pity City.. Regulatory approvals expected to be required include Competition Bureau (Canada), U.S. HSR and Germany FDI. 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. Visit a quote page and your recently viewed tickers will be displayed here. You will be redirected once the validation is complete. In a reverse merger structure, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share, implying a 23% premium to Tilray's share price before the announcement. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. In addition, the Combined Company will have a portfolio of carefully curated brands across all consumer segments that are sold through its distribution partners. Initial returns from the start imply a 20%+ gap opportunity. 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. Through Tuesday's close, Tilray shares have fallen 54% in 2020, while . For more information, visit: aphriainc.com. Internationally, the Combined Company will have the opportunity to reach additional pharmacies and patients via distribution relationships. 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 . The merger between Aphria and Tilray was completed on May 3, 2021. The new entity will be the clear leader in the Canada market, which has continued to see strong growth. Tilrays mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. To access the recording dial (855) 859-2056 and use the passcode 4334816. Cowen provided a fairness opinion dated December 15, 2020 to the board of directors of Tilray stating that, as of the date of such opinion and based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the Exchange Ratio is fair, from a financial point of view, to Tilray. Aphria has generated positive adjusted EBITDA over the last six quarters2, which in combination with the synergies to be realized, provides a robust platform for future profitability and cash flow generation for the Combined Company. 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. Although, assuming the deal does go through as seems reasonable then there could be a short-term increase in APHA stock. On a pro forma basis for the last twelve months reported by each company, the Combined Company would have had revenue of C$874 million (US$685 million). The combined company had a market cap of approximately US$8.2 billion based on the closing stock prices on April 30, 2021. However, in the case of Aphria and Tilray, both stocks rose after the merger news. This represents a 17% compound annual growth rate. 5 Hypergrowth Stocks With 10X Potential in 2023, spending is expected to hit a hefty $55.9 billion by 2026, spending to hit $41 billion by 2025, which would represent a 21% CAGR, One Little-Known Tech Stock Could Be the Next Big Thing in 2023, NIOs New Expansion Plans: What It Means for Investors, Louis Navellier and the InvestorPlace Research Staff. were down 7% Monday, but are up 106% in the year to date, while the Cannabis ETF The merger between Aphria and Tilray was completed on May 3, 2021. After all, Aphria is merging with rival Tilray (NASDAQ:TLRY). Die Tilray (ex Aphria)-Aktie konnte zuletzt im NASDAQ Bsc-Handel zulegen und verteuerte sich um 1,6 . 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 . Forward-looking statements are provided for the purpose of presenting information about managements current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. 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. Aphria and Tilray each believe the business combination pursuant to the Arrangement will provide the following financial and strategic benefits, among others: Financial Strength and Flexibility:The Combined Company will enjoy an attractive financial profile with pro forma revenue of C$874 million (US$685 million) for the last twelve months reported by each company, the highest in the global cannabis industry. Uh-Oh. The Arrangement is expected to close in the second quarter of calendar year 2021 following the receipt of such regulatory approvals, as well as court approval of the Arrangement. The Major Red Flag That BBBY Stock Investors Need to Know About. Tilray shares Approval of a majority of the votes cast by Tilray stockholders will be required to, among other things contemplated by the Agreement, authorize the issuance of Tilray shares to Aphria shareholders pursuant to the Arrangement. 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. Aphria and Tilrays complementary brands will be available across economy, value, core, premium and premium plus product offerings. 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 . A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April . Irwin D Simon, formerly Aphrias CEO and chairman, will lead the new Tilray, with Tilrays current CEO Brendan Kennedy joining the board. On Friday after the markets closed, Tilray filed a joint preliminary proxy . Management opted to make the transaction for $56 million in newly issued stock rather than using any of its $408 million in cash and equivalents. 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