Tilray (NASDAQ: TLRY) and Aphria (TSE: APHA) have decided to merge and become the largest company for the production and distribution of marijuana. The total and combined value of these companies will thereafter be $4 billion.

Let us look at their present individual statistics:

Tilray (NASDAQ: TLRY)

  • 52 Week Range: $2.43 – $22.95
  • Average Volume: 17,312,909
  • Market Capital: $1.246B
  • Forward Dividend and Yield: N/A (N/A)

Aphria (NASDAQ: APHA)

  • 52 Week Range: $1.95 – $8.88
  • Average Volume: 9,885,689
  • Market Capital: $2.319B
  • Forward Dividend and Yield: N/A (N/A)

Canada first legalized marijuana in the year 2018 and in the United States, various states are legalizing the same one by one. The cannabis-infused drinks will also be led by the combination of these two big companies. While Tilray has partnered with the Anheuser-Busch InBev and the company that Aphria will take over is Sweetwater Brewing (the United States craft beer firm). For the production of branded CBD and hemp products, the main focus of these combined companies would be on Manitoba Harvest and Sweetwater.

For the post of the Chairman and the CEO of the combined company, the present chairman and Chief Executive Officer of Aphria Irwin Simon will take over while the Chief Executive Officer of Tilray Brendan Kennedy will be on the board of directors of the new combined company.

Trading of Stocks after this Merger Deal

As per the conditions of this contract, 0.8381 shares of Tilray will go to the investors of Aphria (for each of the common shares of Aphria). After the merging of these companies, the trading will be done under the sticker of Tilray on NASDAQ and the investors of Aphria will get to own a wholesome 62% of the stock of Tilray (the conditions of their contract). The companies after joining forces with each other will have a powerful equity value of about $4 billion, making them the powerhouse of the marijuana industry.

This deal is good news for the investors of these companies and it is also being stated as the reverse merger deal. The stocks of both companies rose after this news with the stocks of Tilray soaring up as high as 22.74% reaching the value of $9.66 while Aphria’s stocks rose by 2.75% and reaching a value of $8.34.

The New Deal and its Benefits

This new merger deal will make these two companies the greatest marijuana production and distribution firm. This will also give great benefits to the shareholders of both the firms and make the pot industry stronger than before. Just after the announcement of the deal, the stocks of both companies rose and it is expected that after the proper merging, the stocks will become more and more profitable for the investors. This will also help to increase the security of investment since the total value of these companies will be $4 billion. All these factors show the positive aspects of this deal for both the companies and the investors as well.

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