Execution necessary for increased market share. -1.00% Third Quarter Performance. This release is being made in respect of the proposed transaction involving Aphria and Tilray pursuant to the terms of an arrangement agreement by and among Aphria and Tilray and may be deemed to be soliciting material relating to the proposed transaction. Upon the completion of the Arrangement, Aphria Shareholders will own approximately 62 percent of the outstanding Tilray Shares on a fully diluted basis, resulting in a reverse acquisition of Tilray, representing a premium of 23 percent based on the share price at market close on December 15, 2020 to Tilray shareholders. Having a cost advantage is extremely important especially as markets get saturated. We are eager to get to work and want to thank both the Aphria and the Tilray Boards of Directors and especially Brendan Kennedy for his spirit of partnership and irrepressible belief in the art of whats possible. We will benefit enormously from his legacy and continued service on the Tilray Board.. An early warning report in respect of the Companys acquisition of all of the outstanding Aphria Shares pursuant to the transaction will be filed on SEDAR and will be available under Aphrias issuer profile at www.sedar.com., Irwin D. Simon, the Companys Chairman and Chief Executive Officer, commented, Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. As previously announced, each Aphria shareholder received 0.8381 of a Tilray Share for each Aphria common share (each an "Aphria Share") held on April 30, 2021, the effective time of the . Tilray shares gained 1.61 per cent to $17.69 at 11:44 a.m. However, as seen in the last election, more states are moving towards legalization. The deal is pursuant to a plan of arrangement (the Arrangement) under the Business Corporations Act (Ontario), and the implied pro forma equity value of the Combined Company is approximately C$5.0 billion (US$3.9 billion), based on the share price of Aphria and Tilray at the close of market on December 15, 2020. The companies are expecting the new combined company which will operate as Tilray to generate pretax cost-saving synergies of $81 million within 18 months of closing. As previously announced, each Aphria shareholder received 0.8381 of a Tilray Share for each Aphria common share (each an Aphria Share) held on April 30, 2021, the effective time of the transaction. During the second quarter of 2021, they will merge to become one company (I hope). Ciara Linnane is MarketWatch's investing- and corporate-news editor. +0.71% The all-stock deal, billed as a "reverse acquisition" of Tilray by the companies in a presentation to investors, will see Aphria shareholders receive 0.8381 shares of Tilray for each Aphria share . The Arrangement is expected to close in the second quarter of calendar year 2021 following the receipt of such regulatory approvals, as well as court approval of the Arrangement. Aphria (APHA) and Tilray (NASDAQ:TLRY) are merging.Combined, the two companies are likely to save money - the main focus of the press releases - but it will take some time until those savings . A telephone replay will be available approximately two hours after the call concludes through January 13, 2021. Tilray (NASDAQ: TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ . Then there is the thriving medical business, which has a global footprint. Jefferies LLC provided a fairness opinion to the Board of Directors of Aphria on December 15, 2020, stating that, as of the date of such opinion and based upon the scope of review and subject to the assumptions, limitations and qualifications stated in such opinion, the Exchange Ratio is fair, from a financial point of view, to the Aphria Shareholders. 5 Hypergrowth Stocks With 10X Potential in 2023, spending is expected to hit a hefty $55.9 billion by 2026, spending to hit $41 billion by 2025, which would represent a 21% CAGR, One Little-Known Tech Stock Could Be the Next Big Thing in 2023, NIOs New Expansion Plans: What It Means for Investors, Louis Navellier and the InvestorPlace Research Staff. The forecast is for spending to hit $41 billion by 2025, which would represent a 21% CAGR. When U.S. regulations allow, the Combined Company expects to be well-positioned to compete in the U.S. cannabis market given its existing strong brands and distribution system in addition to its track record of growth in consumer-packaged goods and cannabis. And with conditions making an investment so risky, it's probably best to steer clear for now. For further information on the terms and conditions of the Arrangement, please refer to the Agreement in its entirety, which will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. The market may be able to move higher in the near to mid-term, but without profits, that move will be capped, possibly by the 150-day EMA. Tilray to strike US$250M deal to buy Hexo: Sources - BNN Bloomberg. Additionally, Aphria and Tilray will file other relevant materials in connection with the proposed transaction with the applicable securities regulatory authorities. The merger has already been completed after some delay, and Aphria shares had a name change. Thursday's release did not repeat that message. Das Papier von Tilray (ex Aphria) konnte zuletzt klettern und stieg im Tradegate-Handel um 1,1 . There will also be significant cost reductions. I look forward to working with Irwin and the Combined Companys management team to make our consumer products more accessible around the world.. has gained 44% and the S&P 500 The Combined Company is considering utilizing Tilrays existing Nanaimo, British Columbia facility for Aphrias premium Broken Coast brand to increasingly meet consumer demand for its products. Tilray Brands Inc current PE Ratio (TTM) is 0. Lessons learned from Aphria-Tilray merger. Chief Corporate Affairs Officertamara.macgregor@aphria.com Management claims that there should be around $25 million in annual cost synergies to realize after the purchase is complete, but it's unclear how long that will take to occur. Aphria and Tilray each believe the business combination pursuant to the Arrangement will provide the following financial and strategic benefits, among others: Financial Strength and Flexibility:The Combined Company will enjoy an attractive financial profile with pro forma revenue of C$874 million (US$685 million) for the last twelve months reported by each company, the highest in the global cannabis industry. Operational Efficiencies Expected to Generate Approximately US$81 Million Annual Pre-Tax Cost-Saving Synergies for New Tilray Within Eighteen Months, Irwin D. Simon, Aphrias Chairman and CEO, will Lead the New Tilray and Has Appointed New Executive Leadership Team; New Members of the Board of Directors Also Appointed, New Tilray Poised to Transform the Global Cannabis Industry as a Consumer Packaged Goods Powerhouse with a Diversified Portfolio of Leading Brands, Renewed Financial Strength to Drive Accelerated Growth Strategy and Sustained Profitability, Tilrays Shares Will Continue Trading on the NASDAQ Under Symbol TLRY; Starting May 5, 2021, Tilrays Shares Will Commence Trading on the Toronto Stock Exchange Under Symbol TLRY. People may receive compensation for some links to products and services on this website. The recent reverse merger acquisition of Tilray announcement by Aphria provides an intriguing pseudo-arbitrage opportunity. A merger Reply TLRY_MAX . Each of Aphrias and Tilrays respective board of directors has unanimously approved the Agreement and the Arrangement. The Combined Company also expects to pursue the opportunity to expand with new or existing CBD or other cannabinoid brands leveraging Manitoba Harvests strong hemp and wellness product platform. The Merger Deal: Under the deal, each Aphria shareholder received 0.8381 of a Tilray share for each Aphria common share held on April 30. Cowen provided a fairness opinion dated December 15, 2020 to the board of directors of Tilray stating that, as of the date of such opinion and based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the Exchange Ratio is fair, from a financial point of view, to Tilray. Initial returns from the start imply a 20%+ gap opportunity. And Tilray needs to beef up its margins, not grow its collection of value brands from two to five. Of course, the timing of this rally coincides with the presidential election. Following its blockbuster merger with Aphria, Tilray continues its M&A streak and grows its revenue and geographic reach considerably. Learn More. So shareholders are unlikely to be impressed by buying a smaller and weaker competitor that will dilute their shares, since the previous plan to buy a far more capable competitor didn't result in much in the form of returns. After the merger completion, the new entity trades under Tilrays ticker symbol, TLRY on both the US and Canadian stock exchanges. Positions Combined Company to Continue to Grow in the Beverage Segment: The Combined Company believes it will be well-positioned to pursue an accelerated rate of growth in the Canadian and the U.S. beverage industries by leveraging SweetWaters innovation, knowledge, and expertise to introduce adult-use cannabis brands via craft beers and other beverages. Aphria and Tilray use words such as forecast, future, should, could, enable, potential, contemplate, believe, anticipate, estimate, plan, expect, intend, may, project, will, would and the negative of these terms or similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Enhanced Consumer Packaged Goods Presence and Infrastructure in the U.S. After Aphria and Tilray merge, the combined entity will be called Tilray and the shares will continue to trade on Nasdaq under the ticker TLRY. Uh-Oh. However, there was an arbitrage opportunity before the merger. You will be redirected once the validation is complete. 203-682-8253 The Motley Fool has a disclosure policy. The price action in Tilray Brands suggests the market is at another bottom. 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