Corparate Cannabis Announces Mega-Merger (MarketWatchers Declare HOLD)
CANNABIS CULTURE – Corporate Cannabis firms Tilray and Aphria have announced they will merge.
The result will be the largest licensed producer on the corporate cannabis scene — and market watchers are skeptical whether this will be a net-positive for the industry or yet another money pit.
Tilray reported a loss of over $250 million in 2020 according to the report it filed with the Securities and Exchange Commission.
Tilray CEO Brendan Kennedy did not comment when questioned about how the company plans to do things differently after the merger.
Financial analyst Rupesh Parikh of Oppenheimer Holdings rated Tilray stock as a hold saying the“execution risk remains high given the current competitive backdrop and complexity of the combination.”
The merger is expected to be finalized at the end of the second quarter (June) of 2021.
The decision is pending the approval of shareholders, the courts and regulatory commissions of Canada, Germany, and the United States. “Until the transaction closes, Tilray and Aphria will continue to operate independently,” said Kennedy in an email exchange.
When the deal is completed, the merged company plans to save $100 million over the next 24 months. However BMO analyst Tamy Chen, in a report stated