Tilray said it has entered into a definitive agreement to acquire Manitoba Harvest for up to 419 million Canadian dollars ($318 million) in a deal that will be financed through cash and Tilray's class 2 common shares. It won't involve any debt, according to the marijuana company.
"Were excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada," said Tilray President and CEO Brendan Kennedy in a press release.
"Tilrays acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories."
The deal gives Tilray "access to a broad portfolio of food products that are currently distributed in 16,000 stores in the US and Canada, with the opportunity to expand beyond the food category, including extracts," said Cowen analyst Vivien Azer in a note out Wednesday.
Tilray began trading on the Nasdaq in July, becoming the first cannabis company to have an initial public offering in the US. Since then, it has sped up developing its business.
In January, the company said it planned to acquire the cultivator Natura Naturals . After the deal, Tilray will be able toexpand its capacity to supply high-quality branded cannabis products to the Canadian market.
Tilray was up 11% this year through Monday.
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