The New TLRY
Tilray and Aphria announce the closing of the transaction that merges Aphria with Tilray. Starting May 5, 2021, Tilray’s Shares will commence trading on the Toronto stock exchange under the symbol “TLRY.” The combined company had a market cap of approximately US$8.2 billion based on the closing stock prices on April 30, 2021. At current prices, CGC is a $9.7B company. We will be releasing a monthly study of sales trends in Canada next Tuesday.
Louisiana Getting close
The Louisiana House of Representatives has been advancing a series of marijuana reform bills in recent weeks. The most consequential measure is Rep. Richard Nelson (R), establishing a recreational cannabis market in the state. That legislation was approved by the House Administration of Criminal Justice Committee last week and is expected to come to the floor for consideration later this week. Nelson is also sponsoring the companion licensing proposal and passed the House on second reading on Monday without debate. It would establish a $2,500 annual fee for cannabis business licenses and a $100 annual fee for a personal cultivation permit. Additionally, it would stipulate that if the state takes in more dollars from those fees than it needs to cover administrative costs, those excess funds will go to individual municipalities and law enforcement.
TRSSF closes HMS Health
TRSSF today announced the completion of its previously announced acquisition of HMS Health, LLC and HMS Processing, LLC, from Curaleaf Holdings, Inc for a total consideration of $27.5 million, comprised of $25.0 million in cash before net adjustments and a $2.5 million note which bears 5.0% annual interest, due October 2022. The acquisition is expected to be immediately accretive to TerrAscend on an EBITDA basis. HMS produces and sells dried flower and oil products for the wholesale medical cannabis market from an existing 22,000 square foot cultivation and processing facility. TerrAscend intends to introduce its portfolio of brands, including Kind Tree, Ilera, and Prism, along with a suite of edibles products, upon regulatory approval. During the second half of 2021, The Company plans to significantly expand its capacity to cultivate the high-quality indoor flower in the state. "We are thrilled to officially enter Maryland, a limited license medical cannabis market with strong long-term growth potential that is adjacent to our core Northeast markets of Pennsylvania and New Jersey," said Jason Wild, Executive Chairman of TerrAscend. "Our strong East Coast management team and corporate support functions are already in place, and we expect to generate synergies by standardizing processes and introducing our portfolio of high-quality branded flower and manufactured products. We plan to scale our cultivation and processing capability to supply the underserved Maryland market while continuing to evaluate opportunities to integrate into the state strategically vertically."
