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BNN Bloomberg Television earlier reported that Aphria and Tilray were in advanced talks. Through Tuesday’s close, Tilray shares have fallen 54 per cent in 2020, while Aphria’s have risen 56 per cent.
Bloomberg Intelligence analysts Ken Shea and Gopal Srinivasan said in a research note that the combination “would offer several benefits,” including “expanded reach into international medical cannabis markets.”
The European market will grow to US$359 million in 2020, up 25 per cent from 2019, according to Brightfield Group, a cannabis consulting firm. The U.S. remains the biggest prize, however. With its widespread recreational use, it’s expected to represent 70 per cent of the world’s US$93.8-billion market by 2025, according to Euromonitor International.
Jefferies served as Aphria’s financial advisor, and Cowen was Tilray’s advisor.