- According to Bloomberg Canada, Tilray (NASDAQ:TLRY) and Aphria (APHA) are in advanced merger talks. An announcement could come as soon as this week. CNBC's Sara Eisen reports that official word may come tomorrow.
- Updated with more details: The merged company is expected to keep the Tilray name, but with Aphria CEO Irwin Simon as CEO, and Aphria holding a bigger stake, and most of the board seats. Tilray boss Brendan Kennedy will get a board seat, but not an executive operating role. Up to $100M in annualized operating synergies are hoped for.
- The merged company is also seen moving its HQ to the U.S. as it focuses on winning market share in that country.
- Aphria earlier this year had its eye on Aurora Cannabis (ACB), but talks between the two ultimately broke down.
- Tilray up 10%, Aphria up 4% in after hours action.
- The M&A animal spirits is lifting other sector names: Aurora Cannabis (ACB) +2.5%, Cronos Group (CRON) +3.5%, Canopy Growth (CGC) +0.4%