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Important Info on the Aphria and Tilray Cannabis Merger

LEAMINGTON, ON and NANAIMO, BC, Feb. 23, 2021 /PRNewswire/ — Aphria Inc. (“Aphria”) (TSX: APHA and NASDAQ: APHA), a leading global fashion buyer’s bundled product organization from cannabis life motivating and enabling people across the region to lead their absolute best life, and Tilray, Inc. (“Tilray”) (NASDAQ: TLRY), a global pioneer in the research, development, the creation and dissemination of cannabis, are satisfied to declare the sending of the Site: This new, dedicated asset seeks to provide investors from both organizations with relevant data, news and updates paving the way for the extraordinary investor gatherings at which separate Aphria and Tilray investors will decide on important goals to materialize. the proposed mix of activities of the two organizations (the “Exchange”). The site will also allow investors and other invested persons to sign up for trade updates which are made freely available, so that they get information directly to their email addresses.

As revealed in the Startup Joint Intermediary Articulation and in the Executive Data Series documented with the Monitors on February 19, 2021, both organizations are satisfied that the material retention period under Hart Law – Scott-Rodino Antitrust Improvements Act of 1976, as amended, terminated pursuant to the Transaction (the “HSR Clearance”). Similarly, the organizations received a letter of no activity from the Competition Bureau of Canada regarding the transaction (the “Objection Act Approval”), which states that the Competition Bureau does not intend to challenge the transaction under the Competition Act (Canada). Receipt of HSR clearance and Competition Act clearance are two of the necessary administrative clearances that must be acquired to satisfy the closing conditions of the transaction. Completion of the Operation is currently expected in the second quarter of the expected year 2021.

Irwin D. Simon, President and CEO of Aphria, said, “The receipt of HSR’s Licensing and Competition Act approval is a critical step in uniting these two organizations, and we are extremely pleased to remain on schedule to complete our business mix in the second quarter of calendar year 2021. Together, Aphria and Tilray hope to make an essential strong impression in Canada and around the world with the scale important operational to fight all the more adequately in the current fusion market of cannabis. We accept that our strong and adaptable balance sheet, financial position and access to capital will give us the ability to accelerate feasible long-term development and generate attractive returns for investors.

Benefits of the transaction for Aphria shareholders and Tilray shareholders

The Boards of Directors of both companies believe that at this stage of development and expansion of the global cannabis market, companies with the financial strength and geographic scale, product range and leading brand expertise are the most likely to succeed in the long run. In addition, the boards of directors of both companies believe that the combination of Aphria and Tilray should generate significant shareholder value as follows:

  • The combination of Aphria and Tilray will create the world’s largest cannabis company with pro forma revenue of US$685 million (C$874 million) for the last 12 months as reported by each company before the date of the announcement of the Transaction on December 16, 2020, the highest in the global cannabis industry.
  • To meet demand, the combined company will have state-of-the-art cultivation, processing and manufacturing facilities, as well as a comprehensive portfolio of branded Cannabis 2.0 products to reinforce its leadership position in the domain. Canada.
  • Internationally, the combined company will be well positioned to pursue growth opportunities through its strong medical cannabis brands, distribution network in Germany, and the European Union Good Manufacturing Practices end-to-end supply chain, which includes its production facilities in Portugal and Germany.
  • In United States, the combined company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater Brewing Company, LLC, a leading cannabis lifestyle brand craft brewer, and Manitoba Harvest United States, LLC, a pioneer in branded hemp, CBD and wellness products with access to 17,000 stores in North America. In case of federal authorization in United States, the combined company expects to be well positioned to compete in the U.S. cannabis market given its existing strong brands and distribution system, in addition to its track record of growth in consumer packaged goods and consumer packaged goods. cannabis base.
  • The combination of Aphria and Tilray should provide approximately $78 million (100 million Canadian dollars) pre-tax annual cost synergies within 24 months of completion of the Transaction. The combined company expects to realize cost synergies in the key areas of cultivation and production, cannabis and product sourcing, sales and marketing, and corporate expenses.

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