A couple of Canadian cannabis companies claim to be the world’s largest producer in terms of sales.
Leamington, Ont., And BC-based Tilrey Inc., Nanaimo’s Apria Inc. Early Wednesday morning they announced that they were merging into an all-stock deal.
News of the deal sent shares of both companies higher in pre-market trading on Nasdaq. Tilre shares have risen more than 28 percent since yesterday’s crisis, while Africa has risen nearly seven percent.
Under the terms of the agreement, Aubrey shareholders will receive 0.8381 shares of Tilray for each Aubrey common stock they hold. At the end of the deal, Africa shareholders will hold about 62 percent of the outstanding Tilre shares, resulting in a reverse acquisition of Tilre.
The merged company will operate under the Tilrey name, while its shares will be traded on the Nasdaq under the TLRY ticker symbol. Apria will become a division of Tilray.
Based on the last 12 months, the companies reported that their total revenue would have been $ 874 million. They said they would have had a 17 percent market share in the Canadian cannabis market – which is huge for any licensed manufacturer.
Afria and Tilrey said they see their union as a way to gain more access to the U.S. market. Last month, Sweetwater Brewing, a Ka-based craft maker in Africa, Atlanta, said it was buying for $ 300 million with distribution in 27 states.
Irwin Simon, the current president and CEO of Africa, will assume the same roles in the affiliated company. The current African directors will hold seven of the nine positions on the new company’s board of directors, while Tilre will take the other two.