Under the terms Aphria holders will receive 0.8381 Tilray share for each of their shares.
The C$5 billion (US$4 billion) merger will create the world's largest marijuana production and distribution company.
The combined company will have "a strong financial profile, low-cost production, market-share-leading brands, distribution network and unique partnerships," Aphria Chief Executive Irwin Simon said in a statement.
The combination is still subject to court approval and a vote of Tilray holders. Tilray's holder vote had been set for April 16; it will be adjourned till April 30 to allow holders more time to vote, Tilray said today in a statement.
At last check Tilray shares were 2.3% higher while Aphria shares were unchanged.
The new company will trade under Tilray’s ticker on the Nasdaq. Aphria shareholders will own 62% of the new company's stock.