New Jersey is now the largest state on the East Coast to have gone through the marijuana legalization process. What does this mean for the future of the cannabis industry? FOX Business’ Kristina Partsinevelos with more.
Aphria Inc. and Tilray Inc. have agreed to merge in a deal that will form the largest cannabis company in the world.
The all-stock deal will create a company worth approximately 5 billion Canadian dollars ($ 3.9 billion) that generated $ 685 million in sales in the past year, making it larger than any other company in the global cannabis industry.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| TLRY | TILRAY INC | 9.98 | +2.12 | + 26.87% |
| APHA | APHRIA | 8.54 | +0.42 | + 5.23% |
“By leveraging our combined strengths and capabilities, we expect to be able to more effectively meet the needs of consumers around the world and improve patient care,” Brendan Kennedy, Tilray CEO, said in a statement.
The new company, which will use the Tilary name and trade on the Nasdaq under the ticker TLRY, will have a portfolio of branded products in Canada and pursue medical opportunities in Europe.
TESLA STOCK’S S&P 500 ACCESS TO INCREASE TSUNAMI’S TRADE VOLUME
Tilray will also have a packaged goods presence in the US through its craft brewer SweetWater Brewing Co. and Manitoba Harvest, a manufacturer of CBD and wellness products.
Under the terms of the deal, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. Tilray shareholders see no adjustment in their stock count.
Aphria shareholders, who will own 62% of the new company, paid a 23% premium for Tilray stock, which was settled Tuesday at $ 7.87 each.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
The new Tilray will be led by current Aphria Chairman and CEO Irwin Simon and the board of directors will consist of seven Aphria directors and two from Tilray, including Kennedy.
The deal is expected to close in the second quarter of next year following regulatory approvals in Canada, the US and Germany.
Tilray shares were down 54% this year through Tuesday, while Aphria shares were up 56%.