Aphria creates world's largest marijuana dealer with $3.9B Tilray merger

The combined company had $685M of sales over the past 12 months

Aphria Inc. and Tilray Inc. have agreed to merge in a deal that forms the world’s largest cannabis company.

The all-stock deal will create a company valued at about 5 billion Canadian dollars ($3.9 billion) that generated $685 million of sales over the past year, making it larger than all other companies in the global cannabis industry.

TickerSecurityLastChangeChange %
TLRYTILRAY INC24.36-0.14-0.57%
APHAAPHRIA17.84-0.38-2.09%

“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,” Tilray CEO Brendan Kennedy said in a statement.

The new company, which will use the name Tilary and trade on the Nasdaq under the ticker TLRY, will have a portfolio of branded products in Canada and will pursue medical opportunities in Europe.

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Tilray will also have a packaged goods presence in the U.S. through its cannabis lifestyle craft brewer SweetWater Brewing Co. and Manitoba Harvest, a CBD and wellness product manufacturer.

Under the terms of the deal, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own. Tilray shareholders won’t see an adjustment in their share counts.

Aphria shareholders, who will own 62% of the new company, paid a 23% premium for Tilray shares, which settled at $7.87 apiece on Tuesday.

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The new Tilray will be led by current Aphria Chairman and CEO Irwin Simon and its board of directors will be made up of seven Aphria directors and two from Tilray, including Kennedy.

The deal is expected to close in the second quarter of next year after receiving regulatory approval in Canada, the U.S. and Germany.

Tilray shares were down 54% this year through Tuesday while Aphria shares were higher by 56%.