Crisis Management: 'We will not see a healthy cannabis sector for years'

Aphria has agreed to acquire Tilray in a reverse takeover deal that would create a new major player in Canada's legal cannabis industry.

Under the terms of the deal, the company will retain the Tilray name but be led by Aphria chief executive Irwin Simon, while Tilray CEO Brendan Kennedy will serve on the board of directors. Aphria and Tilray said the combined company will be the “largest global cannabis company,” having generated a total of $874 million in sales over the last year.

Many have been predicting consolidation in the cannabis industry, and there are expectatoins that there will be further mergers and acquisitions to come. Still, strategy expert Mark Satov says oversupply issues and undisciplined managers means "we will not see a healthy cannabis sector for years."