Cannabis giant Tilray is expanding into the all-natural foods category with the acquisition of hemp foods firm Manitoba Harvest for 419 million Canadian dollars ($319 million) in money and stock in an work to capitalize on cannabidiol-infused goods in North America.
The acquisition will accelerate British Columbia-primarily based Tilray’s expansion into the U.S. and Canadian markets for CBD goods, Tilray stated in a news release.
Manitoba Harvest, primarily based in Winnipeg, currently sells hemp meals goods in much more than 16,000 shops in the United States and Canada and plans to launch a line of CBD goods this summer season.
Below the terms of the agreement, Tilray will obtain Manitoba Harvest from the Compass Group and other shareholders for CA$277.five million at closing, which will be comprised of CA$150 million in money and an additional CA$127.five million in Tilray shares.
Following six months, Tilray will spend an additional CA$92.five million – CA$50 million in money and CA$42.five million in stock.
Tilray says it will challenge CA$49 million in shares primarily based on Manitoba Harvest attaining efficiency milestones this year.
Manitoba Harvest will operate as a wholly owned subsidiary of Tilray immediately after the deal closes, which is anticipated inside the subsequent 30 days.
It is the second substantial acquisition in Canada by the multinational Tilray due to the fact going public on the Nasdaq exchange final year.
Tuesday, Tilray completed its acquisition of Natura Naturals Holdings, the parent firm of an Ontario licensed cultivator, for up to CA$70 million.
Tilray stated it delivered CA$35 million at closing, such as CA$15 million in money and CA$20 million in Tilray stock. One more CA$35 million of Tilray stock may well be payable upon Natura reaching particular quarterly production milestones.
Tilray at present operates 3 facilities in Canada and 1 in Portugal.
The Natura facility will operate as Higher Park Gardens.
Tilray’s shares trade on the Nasdaq as TLRY.