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Tilray to pick up FOUR20
Posted on Friday, 30 August 2019 11:58
Tilray, through subsidiary High Park Holdings, is snapping up Canadian cannabis retail operator 420 Investments (FOUR20) for CAD 110.00 million (USD 82.71 million).
As part of the all-stock transaction, the buyer will pay USD 70.00 million upon closing and a further CAD 40.00 million dependent on the target achieving certain milestones.
Slated to complete by the end of the first quarter of 2020, the deal remains subject to court and shareholder approval, as well as other terms and conditions.
Following the closing of the deal, FOUR20 will become a wholly-owned subsidiary of Tilray.
Headquartered in Calgary, the target operates six licensed retail locations across Canada, including 16 high-traffic sites in Alberta.
Andrew Pucher, Tilray’s chief corporate development officer, said: “FOUR20 offers a premium retail experience for the mainstream cannabis consumer and builds on our broader retail strategy, which includes several minority investments in other leading cannabis retailers.
“With FOUR20, we will elevate the retail experience for consumers by offering the best quality-tested products while preparing for the next wave of legalised product launches taking place by year’s end.”
Based in Toronto, Tilray focuses on the research, cultivation and production of medicinal cannabis and cannaboids.
The group claims to be a market leader in its field and serves thousands of patients, physicians, governments and hospitals throughout seven countries.
Its subsidiaries include the likes of Tilray Canada, Tilray Deutschland and Tilray Portugal and the company posted revenue of USD 68.94 million for the six months ended 30th June 2018, up 74.5 per cent from USD 17.55 million in the corresponding period of 2018.
The deal with FOUR20 represents the third acquisition of a Canadian cannabis company for the purchaser this year, having bought Natura Naturals Holding in February for CAD 70.00 million.
In the same month, Tilray also snapped up Manitoba Harvest for CAD 419.00 million.
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