Tilray, Aphria join via stock swap

Canadian cannabis giants Tilray Inc. and Aphria Inc. agreed to join their operations via an all-stock deal. Aphria shareholders now own 62% of Tilray’s stock under the terms of the transaction, termed a “reverse acquisition of Tilray.” Aphria paid a 23% premium on Tilray’s Dec. 15 closing price of $7.87 (€6.43). The joined company will operate under the Tilray name. The combined group’s 12-month sales of $688 million (€562 million) surpasses that of industry leaders such as Curaleaf Holdings Inc. and Canopy Growth Corp. The merger creates total equity value of about $3.8 billion (€3.1 billion), the companies said. Among the new company’s plans is to expand its position in the CBD sector through hemp food maker Manitoba Harvest, which was acquired last year by Tilray. Aphria Chief Executive Officer Irwin Simon is chairman and CEO of the combined group.