TLRY - Tilray-Aphria merger could be just the start of cannabis consolidation

Cantor Fitzgerald analyst Pablo Zuanic says it makes sense that there is cannabis industry consolidation being teed up in Canada given given oversupply issues, historically low flower retail prices and asset/cost bases that are misaligned for the most part with the current state of development. "Moreover, with US 'federal permissibility' still ~3-4 years away as per most estimates, we believe the Canadian LPs will remain blocked out of the U.S. THC market for the time being."The firm see clear benefits for Aphria (APHA) and Tilray (TLRY), noting the reported synergies of $100M create 50% value on the combined market cap and the combined company would be 2X the next player in domestic recreation in terms of market share. It is also seen as a positive that the company's international assets are complementary and synergistic. A heads-up to the rest of the sector from Cantor - "We believe other mergers could

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Tilray-Aphria merger could be just the start of cannabis consolidation