Here Are Some Major Takeaways From The Aphria and Tilray Combined Merger

Here Are Some Major Takeaways From The Aphria and Tilray Combined Merger

Earlier this week, Aphria Inc. (APHA.TO) (APHA) and Tilray (TLRY) launched a new website that combined the companies which comes ahead of a planned mega-merger. The development captured the attention of mainstream financial media firms and the combined company has been getting great coverage.

Last week, we listened to a segment on CNBC that featured Aphria CEO Irwin Simon and Tilray CEO Brendan Kennedy. We are impressed with how the transaction has been advancing and want to highlight 11 important announcements from the interview:

  1. Aphria and Tilray have been working together to integrate the business so the transition to being a combined company is more seamless
  2. The companies have been working nonstop on the transaction and the integration process has been steadily advancing
  3. Despite a negative response from the market, Aphria CEO Irwin Simon was pleased with Tilray’s most recent quarterly financial report
  4. Aphria and Tilray have filed a proxy with the US Securities and Exchange Commission (SEC) and waiting to hear back from the agency. After (if) the SEC approves the transaction, Aphria and Tilray can send out a proxy to shareholders to close the transaction
  5. The combination of Aphria and Tilray would create the world’s largest retail cannabis business and would be the only cannabis company with a global footprint
  6. The combined company will have a leadership position in Canada and in the EU. Aphria and Tilray have a great foundation and the necessary infrastructure to capitalize on what we expect to be a massive market
  7. Although there is no clarity on the legalization or decriminalization of cannabis in the US, the combined company will be ready to capitalize on the market as soon as regulations change
  8. Aphria CEO Irwin Simon would not be surprised if Germany and Portugal legalize recreational cannabis before the US. With Tilray’s EU GMP facility in Portugal and Aphria’s distribution across the EU, especially Germany, the combined company would be a major beneficiary of what happens in the EU
  9. Aphria’s acquisition of SweetWater Brewing Company and Tilray’s acquisition of Manitoba harvest provide the combined company with attractive Infrastructure in the US and the companies plan to look at making additional acquisitions of strategic US cannabis assets
  10. If the SAFE Banking Act is passed, it would be a major catalyst and would bring lots of money to companies that are levered to the US market.
  11. The combined company is well positioned to be a global cannabis leader due to the human capital, expertise, cash, technology, intelligence and brands, that fall under the Aphria-Tilray umbrella.
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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Mon, 01 Mar 2021 11:59:42 +0000