Canadian cannabis giant Tilray, Inc. TLRY, which completed its acquisition of competitor Aphria, Inc. (APHA) in 2021, could face a lawsuit from former Aphria shareholders.

Background:

2021, after months of negotiationsTilray and Aphria amalgamation into one company with a combined market capitalization of $3.3 billion at this time.

The two Canadian cannabis giants in talks since December 2020 to create a new company, led by Aphria’s current CEO Irwin Simon.

Under the deal each Aphria shareholder received 0.8381 Tilray shares for each Aphria common share held as of April 30, 2021.

What happened?

Apparently, the company’s former shareholders accuse Tilray of misleading investors about some assets it acquired. reported Bloomberg law.

Recently, a judge in the US District Court for the Southern District of New York decided that the Shareholders can represent a class.

Furthermore, Judge George Daniels said that shareholders’ claims that they had relied on misstatements from Aphria “are capable of joint proof through a fraud-on-the-market theory.”

Nevertheless, I’m looking for Alpha’s quant rating sees Tilray as a stop strong marks for valuation and growth.

Photo: Courtesy of Sasun Bugdaryan On Unsplash