The merger of Aphria (APHA) and Tilray (TLRY) is imminent. Aphria's shareholders overwhelmingly approved the deal in a vote held on April 14. The vote meeting of Tilray‘s stockholders scheduled for April 16, and then adjourned until April 30. 

However, Tilray's board of directors changed the vote rules for the combination at the last minute. The amendment which Tilray's board approved that lowered the threshold of the combination. Now, shareholders representing only one-third of the voting power of outstanding shares are required to reach the quorum for shareholder meetings. Perhaps Tilray's board of directors hopes the merger with Aphria can be completed smoothly. As the vote rules changed, it should not be a problem that the transaction being approved by Tilray's shareholders. 

However, the question for investors is, what about the combined Tilray‘s stock? Both companies previously said that the combined company is expected to create the world's biggest cannabis company, but what investors care most is still the revenue. 

Tilray's total revenue increased to $56.6 million for the fourth quarter of 2020 , up 20.5% compared to the same period of 2019, and net loss for the quarter also narrowed. For Aphria, net revenue for the third quarter of fiscal year 2021 was $153.6 million, an increase of 6.4% from $144.4 million in the same period last year, but net loss for the third quarter of fiscal year 2021 was was $361.0 million, which compared to a net revenue of $5.7 million in the third quarter last year, which seems not ideal.

Currently, the Canadian cannabis market is very competitive, an oversupplied cannabis market along with severe price compression and a worldwide pandemic, these are the challenges faced by the both companies after they merge. Therefore, it remains to be seen if the combined company can be as strong as imagined.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.