Canadian cannabis company Tilray Inc. announced plans to merger with Aphria Inc. .The deal would create the world's largest cannabis company by revenue.
CNBC’s Sara Eisen tweeted that a deal announcement could come as early as Wednesday, following a Bloomberg Canada report.
The merged entity would have Tilray as its name, Aphria shareholders would own a larger stake and a majority of the board seats. The all-stock deal will create a company with an equity value of about C$4.8 billion ($3.8 billion). The combined companies’ 12-month annual sales of C$874 million is higher than that of industry leaders such as Curaleaf Holdings Inc. and Canopy Growth Corp.
The merged operation could likely move its headquarters to the U.S. ,according to the report.