Aphria CEO Irwin Simon to head new Tilray
Canadian cannabis companies Tilray Inc. and Aphria Inc. announced the closing of their merger on Monday, creating the world's biggest weed company measured by revenue.
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.
Irwin D Simon, formerly Aphria's CEO and chairman, will lead the new Tilray, with Tilray's current CEO Brendan Kennedy joining the board.
Tilray shareholders voted in favor of the deal on Friday. Aphria shareholders received 0.8381 of a Tilray share for each Aphria common share owned.
The company's stock will continue to list on Nasdaq under the ticker "TLRY" and will start trading on the Toronto Stock Exchange on Wednesday under the same ticker.
"Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets," Simon said in a statement. "
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The company is expecting to be well-positioned to capitalize on any change in U.S. cannabis laws, said Simon. The company owns SweetWater, a cannabis craft beer brewer, and Manitoba Harvest, a hemp, CBD and wellness products maker that has access to 17,000 stores in North America.
Tilray shares (TLRY)were down 7% Monday, but are up 106% in the year to date, while the Cannabis ETF(THCX) has gained 44% and the S&P 500 has gained 11.7%.
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-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 03, 2021 13:59 ET (17:59 GMT)
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