A new mega-merger deal was confirmed this week in the cannabis space.
Meanwhile, a Canadian cannabis producer announced more cuts to its operations, along with reductions in its staff, in a bid to improve its operational balance.
Keep reading to find out more cannabis highlights from the past five days.
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Two cannabis producers announce intention to join forces
2020 was expected to be
exemplified by mergers and acquisitions
, and Aphria (NASDAQ:
APHA
,TSX:APHA) and Tilray (NASDAQ:
TLRY
) brought it down to the wire.
Under a newly announced
merger deal
, the two companies will join up, retaining the Tilray name and as well as Tilray’s stock symbol. However, Aphria CEO Irwin Simon will lead the entire operation, while Brendan Kennedy, CEO of Tilray, will become a board member.
According to estimations from the two companies, the resulting entity will hold a market valuation of C$5 billion and will post a combined C$900 million in pro forma revenue in 2020.
After the deal was confirmed, a
panel of experts
in the cannabis industry gathered to discuss the next steps for the market at large — but not before clamoring for more deals like the Aphria/Tilray tie up.
“(Tuesday’s) announcement is something that we’ve been suggesting for some time, (something) I think the industry needs and has been looking for, which is consolidation amongst the many operators that do sit in Canada,” Som Seif, founder and CEO of Purpose Financial, told an online audience.
The deal is expected to close sometime in Q2 of the 2021 calendar year.
Even more cuts seen in the Canadian cannabis space
A week after the
latest round of cuts
from cannabis producer Canopy Growth (NASDAQ:
CGC
,TSX:WEED), it is now Aurora Cannabis’ (NYSE:
ACB
,TSX:ACB) turn.
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An Aurora spokesperson
confirmed to CBC
that 214 workers will be dismissed for a proposed 75 percent reduction in operations at the company’s Aurora Sky facility in Edmonton, Alberta.
Miguel Martin
, CEO of Aurora,
said in a statement
that some of the company’s previous cost-saving moves are already paying off. He said scaling back production at the Aurora Sky facility will make it so this space can transform into a “high-value cultivation center for our premium strains, and in turn, better align production with current demand for premium flower.”
After confirming an undisclosed agreement with its credit facility lenders, the company told investors that as of Tuesday (December 15) it held
$450 million
in cash.
Cannabis company news
-
Halo Labs (NEO:
HALO
,OTCQX:AGEEF)
shared an update
on a financing program through which the company sold 134,454,000 shares for gross proceeds of C$7 million.
-
Fire & Flower Holdings (TSX:
FAF
,OTCQX:FFLWF)
issued its Q3 financial results
, highlighting C$1.2 million in positive adjusted EBITDA and sequential growth in revenue of 15.8 percent from the previous quarter.
-
VIVO Cannabis (TSX:
VIVO
,OTCQX:VVCIF)
confirmed
that a selection of its medical cannabis products in Canada are now available through the Medical Cannabis by Shoppers online platform.
-
AMP German Cannabis Group (CSE:
XCX
)
sent a letter to shareholders
evaluating its operating year highlights in the German cannabis market and what may be on the way in 2021.
Don’t forget to follow us
@INN_Cannabis
for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Find out what experts say about profiting from the cannabis market in 2020!
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