Current Tilray CEO Brendan Kennedy joins its board of directors.
Cannabis producers Tilray (TLRY) and Aphria (APHA) have reached their merger agreement, they said on Monday, after receiving approval from shareholders of both companies.
Tilray shareholders voted on Friday to issue shares to Aphria shareholders, but the Nanaimo, BC-based company has yet to reveal what proportion of its shareholders have supported the proposal.
About 99% of Aphria shareholders voted for the combination in April.
In December, the two companies announced that they would merge and that the newly created entity would operate as Tilray. Aphria CEO Irwin Simon retains his position at the combined company, while Tilray CEO Brendan Kennedy joins its board of directors.
The new company is expected to generate pro forma revenues of $ 874 million. It will control more than 17% of the retail cannabis market – the most significant share held by any licensed Canadian producer.
While Tilray shareholders backed the deal with Aphria at Friday’s meeting, they opposed plans to increase its share capital, which is expected to raise it from more than 743 million. Shares to 900 million shares.