Tilray, one of Canada’s largest cannabis companies by market cap, has announced it has entered into an agreement to acquire Four20 Investments, an Alberta based retailer that currently operates six licensed retail storefronts in the province, and has secured 16 more locations.
According to a Friday press release, Tilray is paying up to $110 million for the retailer.
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The payment will be made by way of $70 million in Tilray common stock at closing and an additional $40 million more stock “subject to the achievement of certain performance milestones.”
“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,” says Tilray Chief Corporate Development Officer Andrew Pucher. “With FOUR20, we will elevate the retail experience for consumers by offering the best quality-tested products while preparing for the next wave of legalized product launches taking place by year’s end.”
The purchase will be made through Tilray’s subsidiary High Park, a Toronto-based team that says it develops, produces, sells, and distributes a broad-based portfolio of adult-use cannabis brands and products.
The deal still requires approval by both Four20’s shareholders and the courts Tilray says it anticipates that the transaction will be completed by the end of Q1 2020.