Aphria, Tilray seek shareholder approval for merger
Aphria and Tilray are calling special meetings of their respective shareholders to get the go-ahead on their merger to create the world’s largest global cannabis company. Aphria’s meeting is scheduled for April 14 and Tilray has slated its shareholder meeting for April 16.
Aphria noted that it has received the requisite regulatory approvals to complete the transaction — which will see Aphria shareholders receive 0.84 shares of Tilray for each of their shares in Aphria — and is urging shareholders to vote in favor of the merger.
"We are excited to advance closer towards the completion of our complementary and highly scalable strategic transaction with Tilray,” said Irwin Simon, Aphria chairman and CEO, who will have the same roles at the combined company. “On behalf of our board of directors, we recommend Aphria Shareholders vote for the resolution required to approve the business combination with Tilray. We continue to believe our combined business strengths and capabilities will help us to connect more effectively with new and existing consumers and patients across Canada and internationally. Together, we expect the combined company to have a strong financial profile, low-cost production, leading brands, distribution network and unique partnerships, positioning us to deliver sustainable value for all stakeholders."
The company will need at least two-thirds of the votes cast at the meeting to be in favor of the merger for it to be approved. Tilray’s meeting will see shareholders voting on increasing the company’s authorized common stock and issuing Tilray shares to Aphria shareholders pursuant to the agreement, approve compensation related to the agreement.
The companies said that the merger will create a company with pro forma revenue of $685 million for the past 12 months, a strategic footprint and operational scale to make it competitive in the consolidating cannabis market, and the potential for enhanced CPG presence in the United States. The two big brands in the United States will be SweetWater and MAniutobe Harvest, the latter of which is a pioneer in branded hemp, CBD and wellness products with access to 17,000 North American stores.
With shareholders’ blessing, the companies expect the merger to be completed on or about April 20.