The green rush is at sight

Two major Canadian producers of cannabis – Aphria and Tilray, agreed to merge their operations and create the largest cannabis company by sales. The new formation will have a total value of almost $4 million and will maintain Tilray’s name. It is estimated to generate 12-month revenues of $685 million, well above the sales of Canopy Growth and Curaleaf’s $500 million, both of which have larger market capitalizations. The share price of Aphria and Tilray rose 1.5% and 19.22%, respectively, following the announcement.

Meanwhile, rumors suggest that Aphria is negotiating a merger with Aurora Cannabis, as cannabis producers are betting on the expansion in the US market, especially after Joe Biden’s victory in the US election. The mergers demonstrate that the cannabis industry is gaining maturity as it eyes expansions in the coming years. The US federal legalization will boost cannabis-related stocks, potentially fostering one of the most lucrative markets.