A pair of Canadian cannabis companies say they're joining up to form the largest producer in the world based on sales.
Aphria Inc. of Leamington, Ont., and Nanaimo, B.C.-based Tilray Inc. announced early Wednesday they are merging in an all-stock deal.
On Nasdaq, Tilray shares closed Wednesday up more than 18.5 per cent at $9.33 US. While they were initially up earlier in the day, Aphria shares finished in the red — down seven cents at $8.05 US on Nasdaq and off by one cent at $10.31 on the TSX.
Under the terms of the deal, Aphria shareholders will get 0.8381 shares of Tilray for each Aphria common share they hold. Once the deal concludes, Aphria shareholders will own approximately 62 per cent of the outstanding Tilray shares, resulting in a reverse acquisition of Tilray.
The merged company will operate under the Tilray name, while its shares will trade on Nasdaq under the TLRY ticker symbol. Aphria will become a unit of Tilray.
