Tilray To Acquire Cannabis Retailer FOUR20

Tilray, Inc. TLRY said Thursday it signed a definitive agreement to acquire all of the issued and outstanding securities of 420 Investments Ltd., or FOUR20, via its subsidiary High Park Holdings Ltd.

FOUR20 is a Calgary, Alberta-based cannabis retail operator serving the adult-use cannabis market. The company runs six licensed retail locations and has 16 high-traffic locations in Alberta.

Per the agreement Tilray will pay up to to CA$110 million ($82.7 million) in the form of CA$70 million in Tilray Class 2 common stock at closing and $40 million in common stock, the company said in a press release. 

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"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," Andrew Pucher, Tilray's chief corporate development officer, said in a statement. 

"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." 

High Park and its affiliates have fulfilled adult-use supply agreements and purchase orders across Canada, according to Thursday's release. 

Tilray is a cannabis company that provides to tens of thousands of patients and consumers across five continents.

The stock was down 2.04% at $26.64 at the time of publication. 

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