With new edible and vape regulations about to land in the legalized Canadian cannabis industry this fall, British Columbia-based Tilray Inc (NASDAQ: TLRY) is preparing by snapping up another group of retail stores.
Through subsidiary High Park Holdings, Tilray just entered an agreement to acquire 420 Investments Ltd (more commonly known by the moniker FOUR20).
The terms of the all-stock deal see Tilray offering up $70 million in stock upon closing, with an additional $40 million in stock to be issued if FOUR20 hits undisclosed performance milestones.
With that acquisition, High Park and Tilray will gain access to FOUR20’s half a dozen retail sites currently operating in Alberta, four of which are found in Calgary and two additional sites located in Brooks and Canmore.
Aside from those sites already up and running, FOUR20 is working towards opening an extra 16 locations in Edmonton and Calgary.
Andrew Pucher, Chief Corporate Development Officer for Tilray, issued this statement to customers and shareholders regarding the acquisition deal:
That highly anticipated authorization from Health Canada to sell edible and infused products is due to arrive in mid-October, with the first wave of products expected to hit shelves by December.
Recreational adult use companies have eagerly awaited those regulations to catch up to the non-licensed industry in terms of product offerings, as edible and vape products have remained unregulated since the Cannabis Act went into effect last year.
FOUR20 isn’t the only major acquisition from Tilray through the company’s High Park Holdings subsidiary in 2019. Back in January, the companies worked together to acquire an extra 600,000+ sq. ft. of grow space by buying Natura Naturals Holdings Inc in a cash and stock deal.
Seeking to capitalize on these investments and bring cannabis to the forefront of investor fundraising opportunities, Tilray executives will provide presentations at the Barclays Global Consumer Staples Conference in Boston next month.
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