Tilray Inc (NASDAQ: TLRY) announced this morning that it will be entering the cannabis retail space, via an acquisition of 420 Investments. The all stock transaction is valued at approximately C$110 million.
Operating under the FOUR20 brand, 420 Investments currently operates six licensed retail locations across Alberta, with licenses to open 16 more locations across the province. Upon closing, Tilray intends to expand the retail operation to other provinces where permitted.
Under the signed definitive agreement, the retailer will be acquired through a subsidiary of High Park Holdings Ltd, Tilray’s Canadian cultivation subsidiary. While the total purchase price is $110 million, $70 million will be via Class 2 common shares of Tilray, with the remaining $40 million to be issued in Class 2 shares upon certain milestones being met.
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Tilray did not provide an anticipated closing date for the transaction, instead indicating that the offer needs to be approved by 420 Investment shareholders.
Information for this briefing was found via Sedar and Tilray. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
