Canadian cannabis firms Tilray and Aphria have closed on the previously announced business combination with the new company operating as Tilray. The combined company – lauded at the announcement of the deal last year as the world’s largest cannabis company based on pro forma revenue – has a market capitalization of about $8.2 billion based on April 30 close stock prices.
Shares of the combined company will commence trading on the Toronto Stock Exchange and Nasdaq Global Select Exchange under the “TLRY” symbol on Wednesday.
Irwin D. Simon, Aphria’s chairman and CEO, will lead the combined firm. Tilray’s current director and former CEO Brandon Kennedy will serve on the combined company’s board of directors.
“Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. As these markets begin to re-open, Tilray is poised to strike and transform the industry with our highly scalable operational footprint, a curated portfolio of diverse medical and adult-use cannabis brands and products, a multi-continent distribution network, and a robust capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders.” – Simon in a press release
Under the terms of the agreement, Aphria shareholders received 0.8381 shares of Tilray for each Aphria common share.
The company said it expects to see an estimated $81 million of annual pre-tax cost synergies within 18 months and plans to achieve cost synergies in the areas of cultivation and production, cannabis and product purchasing, sales and marketing, and corporate expenses.
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