Tilray and Aphria formalize their merger

Canadian cannabis companies Tilray and Aphria have officially announced the merger that had been anticipated. The new company will operate under the name Tilray.

The combined company, described as the world's largest cannabis company by revenue, has a market capitalization of approximately $8.2 billion (€6.8 billion) based on closing prices as of April 30.

Shares of the combined company will begin trading on the Toronto Stock Exchange and the Nasdaq Global Select Market under the ticker symbol «TLRY» on Wednesday.

Irwin D. Simon, Aphria’s president and CEO, will lead the combined company. Brandon Kennedy, a current director and former CEO of Tilray, will serve on the board of directors of the merged company.

«We are now focused on executing our high-impact priorities, including integrating acquired businesses and accelerating our global growth strategy. Covid-19-related lockdowns presented unique challenges in the Canadian and German markets. As these markets begin to reopen, Tilray is poised to make an impact and transform the industry through our highly scalable operational footprint, a carefully curated portfolio of medical and adult-use cannabis brands and products, a multi-continental distribution network, and a robust capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders,» said declared Irwin D. Simon in a press release

During its final quarter prior to the merger, only 33 % of Aphria’s 153 million Canadian dollars in revenue came from cannabis production, while 57 % came from distribution and 10 % from alcoholic beverages.

Tilray also has distinct business segments: 73 % of its quarterly revenue comes from medical and recreational cannabis, with the remainder coming from hemp.

The combined company will be a major player in the European medical cannabis sector, which is still small but growing rapidly. In Europe, it will be competing with the American giant Curaleaf, which recently acquired Emmac.

In Canada, the future of Tilray will monitor approximately 19 % of the recreational cannabis market.