Does 1+1=3 for This Merger Between Two Cannabis Heavyweights?
On Dec. 16, Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) announced plans to merge in an all stock transaction that would create a company with pro forma combined revenues of almost $685 million, pushing past the sector's current leader, Curaleaf (OTC: CURLF).
The specifics of the deal are as follows: Current Aphria shareholders will receive .8381 shares of the "new" entity (to operate under the Tilray name and current ticker symbol) for each Aphria common share, while Tilray shareholders will retain all their current share holdings. Post merger, Aphria shareholders will control 62% of the combined company, with Tilray shareholders holding the remaining 38%. This transaction will produce a current market capitalization for the new Tilray around $3.2 billion, placing them second among exchange traded cannabis companies after industry leader Canopy Growth (NASDAQ: CGC) at $9.6 billion and just ahead of Cronos Group (NASDAQ: CRON) at $2.6 billion. If you haven't gotten in on the action yet, is now the time?
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Source Fool.com
