There is a risk that some or all the expected benefits of the Arrangement may fail to materialize or may not occur within the time periods anticipated by Aphria and Tilray. Effective on closing, the senior management team and Board of Directors of the Company were reconstituted as follows: The new Tilray logo blends both Aphria and legacy Tilrays branding into a design that reflects the new Companys growing portfolio of brands across cannabis-lifestyle and wellness product categories, including medical, adult-use, hemp foods, and beverages. There will also be a simultaneous, live webcast and supplemental presentation available on the Investors section of Aphrias and Tilrays website at aphriainc.com and Tilray.com. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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. 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. The Combined Company will be the largest global cannabis company based on pro forma revenue for the last twelve months reported by each company with scale and breadth across major geographies and a complete portfolio of market leading brands in the major Cannabis 2.0 product categories. Tilray shareholders voted in favor of the deal on Friday. Please enable cookies on your browser and try again. Focusing on untapped opportunities and backed by the latest technologies, Aphria Inc. is committed to bringing breakthrough innovation to the global cannabis market. Article printed from InvestorPlace Media, https://investorplace.com/2021/03/why-the-aphria-tilray-merger-will-be-a-winner-apha-stock/. The Combined Company plans to capitalize on opportunities for growth through a broadened product offering and additional form factors, with the aim of increasing adult-use cannabis brand availability across certain Canadian provinces to an expanded customer base with the Combined Companys scalable infrastructure. 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 . Tilray Brands Consolidates Hold: Profits Will Drive Shares Higher . Aphria and Tilrays complementary brands will be available across economy, value, core, premium and premium plus product offerings. This is expected to include the opportunity for Aphrias Leamington, Ontario operations to provide additional volume for Tilrays brands and to replace the need for Tilray to use wholesale cannabis purchases from other licensed producers. Unfortunately, it's likely going to be stymied on both those fronts by the sorry state of the Canadian cannabis market, which is flooded with cheap marijuana that's putting a crimp on margins. The forward-looking statements included in this communication are made as of the date of this communication and the Company does undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. As part of the deal, Aphria paid a premium of 23 percent over Tilrays Dec. 15 closing price. Aphria has stopped trading and all Aphria shares are now converted to Tilray shares. Exactly one week later, Aphria's . THCX, We believe that the Company has the strategic footprint and operational scale necessary to compete more effectively in todays consolidating cannabis market with a strong, flexible balance sheet, strong cash balance, and access to capital, which we believe will give the Company the ability to accelerate growth and deliver long-term sustainable value for stockholders. View the full release here: https://www.businesswire.com/news/home/20201216005519/en/. Upon the completion of the Arrangement, Aphria Shareholders will own approximately 62 percent of the outstanding Tilray Shares on a fully diluted basis, resulting in a reverse acquisition of Tilray, representing a premium of 23 percent based on the share price at market close on December 15, 2020 to Tilray shareholders. Tilray generated free cash flow of $3.3 million, compared to a cash burn of $28.3 million a year earlier. 203-682-8253 A driver spent $180,000 to start an Uber Black business. Aphria stock jumped to 8.65 soon after the open, but closed down 0.9% to 8.05 on the stock market today.Tilray jumped 19% to 9.33. Price as of April 18, 2023, 10:34 a.m. Then there is the thriving medical business, which has a global footprint. The forecast is for spending to hit $41 billion by 2025, which would represent a 21% CAGR. After the merger completion, the new entity trades under Tilrays ticker symbol, TLRY on both the US and Canadian stock exchanges. A worker smiles as she shows cannabis plants at the Tilray factory in Cantanhede, Portugal April . Tilray shares were climbing 3% to $18.89, while Aphria was off slightly to $15.38 in premarket trading. At this nascent stage of development and expansion of the global cannabis market, we believe companies with leading geographic scale, product range and brand expertise are most likely to benefit long-term. Nothing short of a trainwreck and I have been sounding the alarms since they admittedly cooked the books with the Aphria merger (see the actual admission in Michael Bowen on LinkedIn: Tilray discloses $1.2B quarterly loss, plan to buy cannabis rival Hexo for Covid-19 related lockdowns have presented unique challenges across Canadian and German markets, Simon said in a statement. 1 Based on the most recently reported quarterly financial statements for Aphria and Tilray.2 Non-GAAP measure which may not be consistent between companies in our industry. The Tilray/Aphria merger must be at risk of falling apart. Tilray and Aphria and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of Tilray proxies in respect of the proposed transaction. Jefferies LLC is serving as financial advisor and DLA Piper LLP (US), DLA Piper (Canada) LLP and Fasken Martineau Dumoulin LLP are acting as legal counsel to Aphria. -0.17% The demand for the Companys products will be supported by low-cost state-of-the-art cultivation, processing, and manufacturing facilities, and it will have a complete portfolio of branded cannabis 2.0 products to strengthen its leadership position in Canada. Cannabis stocks have been on a fire over the last few trading sessions amid renewed hopes of marijuana legalization. Tilray stock leapt 26% to 16.01 in the stock market today . On December 16, 2020, Tilray (TLRY) and Aphria (APHA) announced a merger that would create the largest marijuana company globally. And then Tilray has its U.S. Hemp and Wellness platform, which has distribution in 17,000 stores and a line of BD products. 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. Husch Blackwell LLP. Copies of these documents may be obtained, free of charge, from the SEC or Tilray as described in the preceding paragraph. bnnbloomberg.ca. The combined company had a market cap of about $8.2 billion based on Friday's closing stock . Operating its newly gained market share and slashing redundant costs could provide some good news for shareholders next quarter and beyond, but don't count on that before it happens if you're wondering whether to buy shares or hold on to those you have. 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. Each of Aphrias and Tilrays respective board of directors has unanimously approved the Agreement and the Arrangement. This, collectively with the strength of the Combined Companys balance sheet and access to capital, is expected to help accelerate global growth and value for the Combined Companys stakeholders. And with conditions making an investment so risky, it's probably best to steer clear for now. For a more detailed discussion of risks and other factors, see the most recently filed annual information form of Aphria and the annual report filed on form 10-K of Tilray made with applicable securities regulatory authorities and available on SEDAR and EDGAR. Tilray Brands Inc current PE Ratio (TTM) is 0. A telephone replay will be available approximately two hours after the call concludes through January 13, 2021. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. The combined . 1125 N. Charles St, Baltimore, MD 21201. ) The merger was announced on December 16, 2020 and I assume they're still looking to merge as the deal makes a lot of sense in terms of market share and cost synergies. By leveraging our combined strengths and capabilities, we expect to be able to meet the needs of consumers more effectively all over the world and advance patient care. Second, Hexo is deeply unprofitable, its quarterly revenue shrank 54% year over year, and it has $191 million in Canadian dollars ($143 million) in debt. To make the world smarter, happier, and richer. According to research from BDSA, the spending is expected to hit a hefty $55.9 billion by 2026. Offers may be subject to change without notice. Tilray stock has fallen sharply from the peaks. Of course, the timing of this rally coincides with the presidential election. Copyright 2023 MarketWatch, Inc. All rights reserved. Additional Information About Tilray and Where to Find It. This news release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Establishes an Unrivaled European Platform:The Combined Company will be well-positioned to pursue growth opportunities with its end-to-end EU-GMP supply chain and distribution, which includes Aphrias German medical cannabis distribution footprint and Tilrays 2.7 million square foot European EU-GMP low-cost cannabis cultivation and production facility in Portugal. Strategic Footprint and Operational Scale. She is based in New York. Cannabis does look like a secular growth market. 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 . Well, I think the deal will be transformative for APHA stock and has the potential to lead to strong long-term gains. 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. Forward-looking statements involve significant known and unknown risks and uncertainties. Irwin D Simon, formerly Aphrias CEO and chairman, will lead the new Tilray, with Tilrays current CEO Brendan Kennedy joining the board. Positioned to Pursue an Accelerated International Growth Strategy. Big question with dollar under fire from rival countries and currencies: What happens to markets if the greenback loses its dominance? Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. Marijuana producers Tilray and Aphria announced plans to merge Wednesday in a deal that will create a $4 billion cannabis colossus. Material risks that could cause actual results to differ from forward-looking statements also include the inherent uncertainty associated with the financial and other projections; the prompt and effective integration of the Combined Company; the ability to achieve the anticipated synergies and value-creation contemplated by the proposed transaction; the risk associated with Aphrias and Tilrays ability to obtain the approval of the proposed transaction by their shareholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all; the risk that a consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; the outcome of any legal proceedings that may be instituted against the parties and others related to the Arrangement Agreement; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; risks relating to the value of Tilrays common stock to be issued in connection with the transaction; the impact of competitive responses to the announcement of the transaction; and the diversion of management time on transaction-related issues. 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. Nasdaq 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. Tilray Brands sustaining and growing the top line while strengthening the balance sheet. Under the terms of the Agreement, the Arrangement will be carried out by way of a court approved plan of arrangement under the Business Corporations Act (Ontario) and will require the approval of at least two-thirds of the votes cast by the Aphria Shareholders at a special meeting. 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. Aphria (APHA) and Tilray (NASDAQ:TLRY) are merging.Combined, the two companies are likely to save money - the main focus of the press releases - but it will take some time until those savings . The Companys class 2 common stock (Tilray Shares) will continue to trade on the Nasdaq Global Select Exchange under the ticker symbol TLRY and will commence trading on the Toronto Stock Exchange under the ticker symbol TLRY on May 5, 2021. Tilray just purchased another Canadian marijuana business. The forward-looking statements included in this news release are made as of the date of this news release and neither Aphria nor Tilray undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. So shareholders are unlikely to be impressed by buying a smaller and weaker competitor that will dilute their shares, since the previous plan to buy a far more capable competitor didn't result in much in the form of returns. Tilray Inc. is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better one person at a time by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Interestingly enough, based on these terms, APHA stock is trading at a discount. Das Papier von Tilray (ex Aphria) konnte zuletzt klettern und stieg im Tradegate-Handel um 1,1 . 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. Our highly complementary businesses create a combined company with a leading branded product portfolio, including the most comprehensive Cannabis 2.0 product offerings for patients and consumers, along with significant synergies across our operations in Canada, Europe and the United States. Toronto-listed Aphria shares were virtually flat at $17.81. This includes leveraging Aphria and Tilray's proven distribution networks in Canada to sell SweetWater's 420 cannabis lifestyle brand in Canada. In Canada, the combination of Aphria and Tilray will create the leading adult-use cannabis company with gross revenue of C$296 million (US$232 million) in the adult-use market for the twelve months reported by each company. During the second quarter of 2021, they will merge to become one company (I hope). Cowen is serving as financial advisor and Cooley LLP and Blake, Cassels and Graydon LLP are acting as legal counsel to Tilray. The merger between Aphria and Tilray was completed on May 3, 2021. 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. ET on Thursday. ET. However, it looks a good buy now given the strong fundamentals of the new entity. The purchase will shore up its share of the Canadian market, which is sagging. Although, assuming the deal does go through as seems reasonable then there could be a short-term increase in APHA stock. Tilray shareholder." Michael A. Gayed, CFA on Instagram: "Aphria shareholders overwhelmingly voted in support of a merger with Tilray. The firm is primarily known for regulation and transaction work, but also provides expertise in corporate and securities, vendor contracts, employment law . Each of Aphrias and Tilrays respective directors and officers and certain principal Tilray Stockholders have entered into voting support agreements agreeing to vote their Aphria Shares or Tilray Shares, as applicable, in favor of the resolutions put before them pursuant to the Agreement. Yet the terms of the deal look more advantageous to Aphria. Likewise, the stock market heavily disfavors marijuana companies and unprofitable companies at the moment, and Tilray falls into both of those buckets. In Canadas C$3.1 billion adult-use, retail market3, the Combined Company will have one of the lowest cost production operations with its state-of-the-art facilities. The global cannabis cultivation market size is expected to reach USD 1,844.1 billion, expanding at a CAGR of 21.3% from 2023 to 2030. Even Amazon has supported the federal legalization of marijuana. 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. Stock Market Basics. Words such as forecast, future, should, could, enable, potential, contemplate, believe, anticipate, estimate, plan, expect, intend, may, project, will, would and the negative of these terms or similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. In other words, management's track record with retaining the market share it gains via acquisitions is spotty at best, and its long-term goal of reaching a market share of around 30% seems persistently far off. This is some 80s arbitrageur shit going down. Whats more, the recreational business will have a strong set of brands, which span from low-cost to premium offerings. Learn More. Please enable JavaScript on your browser and try again. 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 When U.S. regulations allow, the Combined Company expects to be well-positioned to compete in the U.S. cannabis market given its existing strong brands and distribution system in addition to its track record of growth in consumer-packaged goods and cannabis.