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Tilray Aphria Merger Creates World’s Largest Cannabis Company

Cannabis Market, Licensed Producers

Companies Positioning Themselves for International Sales in Europe, US – LPC

A version of this story first appeared at www.forbes.com

The Tilray Aphria merger will streamline the Canadian cannabis market and prepare for US and European expansion.The Tilray Aphria merger announced this week will create the world’s largest cannabis company. And it has its eyes on one big prize: the US.

“The next big prize is the United States,” said soon-to-be-ex Tilray CEO Brendan Kennedy. He will step down in favour of Aphria CEO Irwin Simon in what’s being called a reverse acquisition. The Tilray Aphria merger still needs federal regulatory approval in both Canada and the US since their stocks trade on the TSX and NASDAQ.

“I think medical cannabis will be legal at the federal level, which means medical cannabis can… be imported into the US,” Kennedy said. After that, cannabis distribution in the US will be similar to alcohol and tobacco, he predicted. Currently, the US federal ban on cannabis prevents companies from taking cannabis over state lines.

Many predict that US cannabis legalization in 2021 will be more likely under Joe Biden, but so far he has not indicated anything beyond decriminalization.

Tilray also has a foothold in Europe. It opened its EU campus in Portugal in 2019 to conduct research and access the EU market. The medical cannabis market there is expected to grow to $87 billion by 2028.

Domestically, the Tilray Aphria merger will help streamline its Canadian operations. Experts have long predicted consolidation in the cannabis industry. Other reports peg the savings at $100 million over two years by combining sales and production, and reducing expenses.

Will the Tilray Aphria Merger Be a Bust or Boom?

So, is the Tilray Aphria merger a positive news story, or a negative one? Given that consolidation in the Canadian cannabis industry is almost a given, this deal comes as no surprise. A certain amount of streamlining will be helpful. Ultimately, any deal that strengthens the industry while preserving consumer choice – as this one does – must be viewed as beneficial.

This editorial content from the LPC News Team provides analysis, insight, and perspective on current news articles. Are you part of the legal cannabis industry in Canada? Add Your Listing and get found by a qualified audience.

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