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Tilray and Aphria agreed to combine their operations, forming a new giant in the fast-growing cannabis industry.
The all-stock deal, which puts together two of the market's best known names, will create an entity with an equity value of about C$4.8 billion ($5 billion), according to a statement and interviews with Tilray and Aphria leaders. The combined group's 12-month sales of C$874 million surpasses that of industry leaders such as Curaleaf Holdings and Canopy Growth.
Tilray shares are up more than 24 per cent after the deal.
Credit:AP
The new company will keep Tilray's name and trade under its ticker on the Nasdaq, and Aphria shareholders will own 62 per cent of Tilray's stock under the terms of the transaction, which was characterised as a "reverse acquisition of Tilray." Ontario-based Aphria will pay a 23 per cent premium to Tilray's December 15 closing price of $US7.87.