The cannabis market as a pharmacy, after it became known that the Canadian cannabis companies Tillrey and Afria are considering a merger – the completion of such a deal would make the merged group the second largest cannabis company in the world, after Canopy Grout.
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Ephraim is traded on the Nasdaq stock exchanges at a market value of $ 2.35 billion and is the best-selling cannabis brand in Canada. Tillrey, which is also traded on the Nasdaq stock exchanges and worth $ 1.13 billion, is considered the best-known international brand in the world. The big competitor Canopy is traded on the Nasdaq at a value of $ 9.9 billion.
The division of shares examined between the two puts the share of Ephraim shareholders in the merged company at about 60%, while the rest of the shares, a 40% share, will be held by Tillrey’s shareholders. The two are also considering continuing to merge the merged company under the name and symbol of Tillery on the NASDAQ (TLRY), and transferring management reins to Ephraim.
Irwin Simon, CEO of Afria, is expected to serve as chairman and CEO of the merged company, and Brendan Kennedy, CEO of Tillery, is expected to take a seat on the board of the merged company, but without any executive role.
The merger between the two was examined about two weeks after the U.S. House of Representatives approved the removal of the cannabis plant and its components from the U.S. Federal Dangerous Drugs Ordinance, and promoted the Senate proposal. Erwin Simon, CEO of Afria said following the announcement: “Efria needs to expand outside of Canada, and a merger with Tillery could be a great answer to that, as Tillery is also located in the US with strategic assets.”
Efria’s revenue in its first fiscal quarter of 2020, which ended late August, stood at $ 145.6 million – the company posted a loss of $ 5 million or 2 cents a share during the period. Tillery’s revenue for that period (its third quarter for 2020) was $ 51.4 million, leaving it with a loss of $ 2 million or 2 cents a share. Ephraim and Tillrey presented cash and cash equivalents at the end of the period which stood at $ 400 million and $ 155.2 million respectively.
Since Biden began to establish himself in the U.S. polls as a winner in the U.S. presidential race, cannabis stocks have begun to climb the U.S. stock market, leading Tillrey to a 60 percent rise in its stock since early October and its rise to an 83.3 percent rise over that period.