Aphria CEO Talks Up Tilray Deal, Expects To Be EBIDTA-Positive And 'Not Burning Cash'

Earlier this month, cannabis growers Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) announced a merger to create the largest enterprise in the industry by revenue.

It is estimated the combined entity will be valued at roughly $3.9 billion, boasting pro-forma yearly sales of $685 million.

had the chance to catch up with Aphria CEO and chairman Irwin D. Simon, who will maintain those two positions in the new company, and Tilray CEO Brendan Kennedy, who will serve in the new corporation’s board of directors alongside one other person picked by Tilray, and seven others (including Simon) from Aphria. In the first part of this interview, we discussed the genesis of the transaction, its implications, cost savings, and layoffs. In this second piece, we’ll look into the companies’ ambitions in the beverages and international markets, among other things.

The Beverage Play

Aphria recently acquired SweetWater Brewing Company for $300 million. Tilray, meanwhile, has a joint venture with Anheuser-Busch InBev NV (NYSE: BUD) called Fluent Beverage Company.

Both these relationships signal a clear interest from the companies in the beverage space. 

“Anheuser-Busch InBev is a major brewer out there, and I would love to expand the relationship, expand the distribution with the company,” Simon says. “Sweet Water is a draft beer business that has a connection to cannabis, and Millennial consumers. So it’s a different play. There's a lot more that can be done with the combination of ABI, Tilray, Aphria and …

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