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On Dec. 16, Aphria (APHA) and Tilray (TLRY) announced a merger to form the largest cannabis company in the world by revenue. As we said in our earlier note on speculation of the deal, we see a strong strategic rationale for the combined company, which will keep the Tilray name, including the ability to consolidate production in Canada, combine alcohol and CBD businesses in the United States in preparation for potential federal legalization, and the ability to combine efforts in Europe. We consider the target CAD 100 million of cost synergies as achievable, as they represent just 9% of combined costs and overhead expenses, and we see significant low-hanging fruit.