Tilray acquires Natura Naturals Holdings for $52mn

Medical and recreational cannabis research, cultivation, production and distribution firm Tilray Inc announced this week it has entered into a definitive agreement to acquire will acquire all of the issued and outstanding securities of Natura Naturals Holdings Inc, the parent company of a licensed cultivator of cannabis.
Tilray will deliver US$26.3mn upon completion of the deal, comprised of $11.2 mn in cash and $15mn in Tilray Class 2 common stock. Natura shareholders will receive their pro rata portion of the $11.2mn closing cash amount, following the deduction of transaction expenses and applicable tax. Following the closure of the deal, the remaining $26.3mn may become payable, depending on Natura’s ability to reach certain quarterly production milestones. If those requirements are reached, the final sale will be worth $52mn.
Upon closure of the deal, Tilray will acquire Natura’s 662,000 square-foot greenhouse cultivation facility, of which 155,000 square-feet are currently licensed, and all subsequent cannabis output from this facility.
SEE ALSO:
-
What effect has the legalisation of recreational cannabis had on the Canadian market?
-
Read the January edition of North American Business Chief here.
Tilray’s revenue increased by 86% year-on-year in 2018, up to $10mn. In Q3 2018, the company sold sold 1,613 kilograms of cannabis.
“We’re very pleased to have an agreement in place that allows us to expand our capacity to supply high-quality branded cannabis products to the Canadian market,” said Brendan Kennedy, Tilray President and CEO. “Through an extensive and thorough search for the right supply partner, we’re pleased to have come to a mutually-beneficial agreement with Natura.”
The transaction is expected to close in the next 30 days.
- Canopy Growth Corp: putting the customer firstLeadership & Strategy
- A taste of 2020 from OCS: Cannabis 2.0Leadership & Strategy
- Imperial Brands to invest $123mn in cannabis company AuxlyLeadership & Strategy
- Canadian cannabis company MPX International acquires Australian subsidiaryLeadership & Strategy