has gained 11.7%. Value-priced products tend to have lower margins than premium-priced products, because with premium products there's far more room for marking up prices based on relatively inexpensive features like trendy branding. Our highly complementary businesses create a combined company with a leading branded product portfolio, including the most comprehensive Cannabis 2.0 product offerings for patients and consumers, along with significant synergies across our operations in Canada, Europe and the United States. The webcast will be archived for 30 days. Factors that may cause such differences include, but are not limited to, risks assumptions and expectations described in Aphrias and Tilrays critical accounting policies and estimates; the adoption and impact of certain accounting pronouncements; Aphrias and Tilrays future financial and operating performance; the competitive and business strategies of Aphria and Tilray ; the intention to grow the business, operations and potential activities of Aphria and Tilray; the ability of Aphria and Tilray to complete the Arrangement; Aphrias and Tilrays ability to provide a return on investment; Aphrias and Tilrays ability to maintain a strong financial position and manage costs, the ability of Aphria and Tilray to maximize the utilization of their existing assets and investments and that the completion of the Arrangement is subject to the satisfaction or waiver of a number of conditions as set forth in the Arrangement Agreement. With a strong financial profile, low-cost production, leading brands, distribution network and unique partnerships, we believe the Combined Company will be well-positioned to deliver sustainable, attractive returns for stockholders. Substantial Synergies: The combination of Aphria and Tilray is expected to deliver approximately C$100 million of annual pre-tax cost synergies within 24 months of the completion of the transaction. For more information on how we open a world of wellbeing, visit Tilray.com. This is expected to include the opportunity for Aphrias Leamington, Ontario operations to provide additional volume for Tilrays brands and to replace the need for Tilray to use wholesale cannabis purchases from other licensed producers. Please enable cookies on your browser and try again. Enhances Consumer Packaged Goods Presence and Infrastructure in the U.S.: In the United States, the Combined Company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater, a cannabis lifestyle branded craft brewer, and Manitoba Harvest, a pioneer in branded hemp, CBD and wellness products with access to 17,000 stores in North America. First, the terms of the deal will mean that their shares get a bit diluted. 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. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Company following the business combination difficult. The highly anticipated merger between Aphria (TSX:APHA)(NASDAQ:APHA) and Tilray (NASDAQ:TLRY) is set to close in Q2.Insiders anticipate that the merged entity could exist as soon as April. Die Aktie von Tilray (ex Aphria) zhlt am Dienstagmittag zu den bestplatzierten des Tages. The Combined Company is expected to leverage SweetWaters craft beer manufacturing and distribution network to build brand awareness for the Combined Companys leading brands via craft beers, hard seltzers, and other beverages as it seeks to take advantage of opportunities for both the adult-use and health and wellbeing beverage trends. Here's why. There will also be a simultaneous, live webcast and supplemental presentation available on the Investors section of Aphrias and Tilrays website at aphriainc.com and Tilray.com. The demand for the Companys products will be supported by low-cost state-of-the-art cultivation, processing, and manufacturing facilities, and it will have a complete portfolio of branded cannabis 2.0 products to strengthen its leadership position in Canada. Cost basis and return based on previous market day close. Aphria has stopped trading and all Aphria shares are now converted to Tilray shares. The Combined Company is expected to have a strong, flexible balance sheet, cash balance and access to capital giving it the ability to accelerate growth and deliver attractive returns for stockholders. In addition, the Combined Company will have a complete breadth of products in every major cannabis category, including flower, pre-roll, oils, capsules, vapes, edibles and beverages. To listen to the live call, dial (647) 427-7450 from Canada and the U.S. or (888) 231-8191 from international locations and use the passcode 4334816. Tilray (NASDAQ: TLRY) shareholders will vote on the all-stock merger with Aphria (NASDAQ . This actually presents an arbitrage opportunity, in which an investor can short Tilray and buy Aphria to lock in a gain. 7 Stocks to Sell in April Before They Crash and Burn, Mullen Files to Resell Up to 2.1 Billion Shares of MULN Stock, 7 Dividend Stocks to Buy That Are Backed by Strong Cash Flows, 3 Reasons Why the Aphria-Tilray Merger Will Be a Winner. Making the world smarter, happier, and richer. She is based in New York. Rooted in our founders' multi-generational expertise in commercial agriculture, Aphria Inc. drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships, and global expansion. Tilray generated free cash flow of $3.3 million, compared to a cash burn of $28.3 million a year earlier. 1 Based on the most recently reported quarterly financial statements for Aphria and Tilray.2 Non-GAAP measure which may not be consistent between companies in our industry. Cowen is serving as financial advisor and Cooley LLP and Blake, Cassels and Graydon LLP are acting as legal counsel to Tilray. Following the completion of the Arrangement, the Combined Company will have principal offices in the United States (New York and Seattle), Canada (Toronto, Leamington and Vancouver Island), Portugal and Germany, and it willoperate under the Tilray corporate name with shares trading on NASDAQ under ticker symbol TLRY. THCX, Recreational marijuana sales are expected to soar if marijuana is legalized at the federal level in the U.S., a real possibility now that Democrats control the Senate. were down 7% Monday, but are up 106% in the year to date, while the Cannabis ETF The merger had got delayed due to the delay in approval from Tilray shareholders. Tilray, for its part, has already used this business development strategy to markedly increase its market share in Canada through the 2021 merger with Aphria, and then again with its latest . Copyright 2023 MarketWatch, Inc. All rights reserved. But this is certainly a sophisticated strategy. A driver spent $180,000 to start an Uber Black business. The forward-looking statements included in this communication are made as of the date of this communication and the Company does undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. Aphria and Tilray are confident that the leadership team and proposed board of directors of the Combined Company provides a strong foundation for the Combined Company to accelerate growth. After the merger completion, the new . , which was one of the first platforms for public offerings during the 1990s. With the Biden administration in the White House, the prospects look more encouraging for fewer regulations on the cannabis industry. 203-682-8253Raphael.Gross@icrinc.com, Aphria and Tilray Combine to Create Largest Global Cannabis Company With Pro Forma Revenue of C$874 Million (US$685 Million), Alphria Inc. & Tilray, Inc Merger Resources, https://www.businesswire.com/news/home/20201216005519/en/. The reverse merger with Tilray will see Aphria shareholders get 0.8381 shares of Tilray for each Aphria share they own, while owning 62% of the combined company, which on a pro forma basis had . Material risks that could cause actual results to differ from forward-looking statements also include the inherent uncertainty associated with the financial and other projections; the prompt and effective integration of the Combined Company; the ability to achieve the anticipated synergies and value-creation contemplated by the proposed transaction; the risk associated with Aphrias and Tilrays ability to obtain the approval of the proposed transaction by their shareholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all; the risk that a consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; the outcome of any legal proceedings that may be instituted against the parties and others related to the Arrangement Agreement; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; risks relating to the value of Tilrays common stock to be issued in connection with the transaction; the impact of competitive responses to the announcement of the transaction; and the diversion of management time on transaction-related issues. The recent reverse merger acquisition of Tilray announcement by Aphria provides an intriguing pseudo-arbitrage opportunity. Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. ET on Thursday. The continued use of Tilray as the Companys name evokes hard work and hope til shortened from tilling the soil and ray as in a ray of sunshine. -1.00% Yet there are also major business synergies with the merger. Aphria and Tilrays complementary brands will be available across economy, value, core, premium and premium plus product offerings. Now the enthusiasm for the U.S. market may be overly optimistic. Tilray (Nasdaq: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in 15 countries spanning five continents. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. Copies of these documents may be obtained, free of charge, from the SEC or Tilray as described in the preceding paragraph. In Germany, Aphrias wholly-owned subsidiary, CC Pharma GmbH, will provide the Combined Company with distribution capabilities for the Aphria and Tilray medical cannabis brands to more than 13,000 pharmacies. 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 . 203-682-8253 The merger between Aphria and Tilray was completed on May 3, 2021. The Combined Company expects to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales and marketing and corporate expenses. 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