Photo: Tilray’s High Park London facility at 300 Sovereign Road
LEAMINGTON-BASED APHRIA Inc. and Nanaimo, B.C.-headquarted Tilray Inc. confirmed Wednesday they have agreed to join forces in a blockbuster deal uniting two of the biggest names in the legal cannabis industry.
Under the terms of the agreement, each Aphria share will be exchanged for 0.8381 of a Tilray share, while Tilray shareholders will retain their existing shares. As a result of the exchange ratio, Aphria shareholders will own 62 per cent of the combined company’s common shares.
The companies will operate under the Tilray name after the deal closes.
Story Continues Below
According to the release Wednesday, Aphria CEO Irwin Simon will lead the combined company as chairman and CEO.
“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,” Simon said in the release.
The arrangement creates a new industry powerhouse, with combined revenue of $874 million over the last 12 months. The two companies confirmed Wednesday they’re aiming for $100 million in annual cost savings, which they said helps provide “a robust platform for future profitability.”
Story Continues Below
The release also indicated that Tilray’s High Park London facility at 300 Sovereign Road, a licensed processing, manufacturing and R&D space that produces adult-use products including vapes, edibles and beverages, is expected to realize increased opportunity as part of the merged firm.
“Tilray’s London facility will also provide Aphria with excess capacity to increase production of additional form factors including their branded edibles and beverages,” the release stated.
Dispatch: A summary of recent business appointments and announcements, plus upcoming events for the week ahead
Gen Z: They’re stalled, stressed and scanning the horizon for more bad news in the coming year
Devoid of porch pirates, snoopy spouses and missed deliveries, the office has become the go-to depot for everyone’s holiday shopping
Someone has finally calculated the odds of an online application actually resulting in a job. It’s about as bad as…
Canadians are choosing low-deposit strategies to help keep discretionary entertainment spending in control
Despite a job market that is increasingly challenging for most jobseekers, executive roles abound