Canadian LPs Aphria and Tilray are in advanced talks to carry out a merger, BNN Bloomberg reports.
According to sources familiar with the matter, the combined entity will keep the Tilray name while appointing Aphria's CEO as its CEO. Most likely, Aphria will hold a majority of the company's board seats with its shareholders owning 60% stake. Yet, sources say that this might change.
The bargaining between the companies was ongoing on Tuesday, and there's no certainty that this deal will be completed.
If the merger is finalized, the biggest cannabis company in Canada, as well as one of the major players globally, would be created. Tilray, indeed, has operations in the EU, UK, and Australia, while Aphria has a German pharmaceutical distribution business.
According to Bloomberg, the company would control a 19% share of the Canadian recreational cannabis market and annual revenue north of $930 million, based on the two companies' most recent quarterly results as well as revenue generated by Sweetwater Brewing Co., which Aphria acquired last month.
**UPDATE: Shortly after publishing, Aphria and Tilray have officially announced they entered a definitive agreement to merge. Click here to read more