Tilray and Aphria to Merge, Creating Largest Marijauna Company in the World
A blockbuster merger in the cannabis industry was announced Wednesday morning. Canadian peers Tilray (NASDAQ: TLRY) and Aphria (NASDAQ: APHA) are combining to make the world's largest marijuana company in terms of trailing 12-month, pro forma revenue.
The merger will be effected through an all-stock transaction. Aphria stockholders are to obtain 0.8381 of one share of Tilray for each Aphria share they own; Tilray stockholders will see no change in their holdings. Following the transaction, today's Aphria investors will own roughly 62% of the merged entity.
The merged company will retain the Tilray name, with the stock keeping its current ticker symbol. It will be led by Aphria's CEO Irwin Simon, with seven of the nine seats on the new business's board of directors going to present Aphria directors. The remaining two directors will be from Tilray, including that company's CEO Brendan Kennedy.
Source Fool.com
