Jim Cramer Says Canopy Is the Cannabis Stock to Buy

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Aphria  (APHA) - Get Report and Tilray  (TLRY) - Get Report announced a huge M&A deal on Wednesday.

Under terms of the agreement, Aphria shareholders will receive 0.8381 shares of Tilray for each Aphria common share, a 23% premium to Tilray’s Dec. 15 closing price of $7.87. The all-stock deal will create a new powerhouse in the pot industry, with an equity value of about C$4.8 billion ($3.8 billion).

The new company will trade under Tilray’s ticker on the Nasdaq, and Aphria shareholders will own 62% of Tilray’s stock under the terms of the transaction, which was characterized as a “reverse acquisition of Tilray,” the companies said.

Watch: Everything Jim Cramer Is Watching in the Markets Wednesday

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