Soon, two of the largest companies operating in the cannabis space will merge, forming what will inarguably be a cannabis powerhouse, unrivaled by others in the industry. Tilray and Aphria have been finalizing the details that will allow them to combine forces and want to make sure those who have a vested interest in the deal can stay on top of all of the moving parts. They have jointly launched a new website that will give users, shareholders and others access to all the news and data ahead of the finalization of the merger.
The site, aphriatilraytogether.com, is now operational and is full of pertinent information related to the companies’ operations, as well as the pending merger. Tilray and Aphria explain on the site, “The business combination is expected to expand Aphria’s and Tilray’s U.S. and international reach through state-of-the-art cultivation and manufacturing facilities, a diversified product portfolio and its distribution footprint and robust supply chain.
“The business combination is expected to provide operational efficiencies that are anticipated to generate approximately C$100 million (US$78 million) of annual pre-tax annual cost synergies within 24 months of the completion of the business combination.”
So far, the merger has not found any resistance. It rapidly passed through the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and has not been called into question by the Competition Bureau of Canada. Clearing those two regulatory hurdles was fundamental to being able to complete the merger.
Aphria’s chairman and CEO, Irwin D. Simon, adds, “The receipt of HSR Clearance and Competition Act Approval represent a significant step forward in bringing together these two companies, and we are incredibly pleased that we remain on track to complete our business combination in the second quarter of calendar year 2021.
Together, Aphria and Tilray expect to have a robust strategic footprint in Canada and internationally with the operational scale necessary to compete more effectively in today’s consolidating cannabis market. We believe our strong, flexible balance sheet, cash position and access to capital will provide us with the ability to accelerate long-term sustainable growth and deliver attractive returns for shareholders.”