Tilray, Inc. (NASDAQ:TLRY) noticed shares that were somewhat static, on word 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-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 $110 million Canadian ($82.7 million U.S.) in the form of $70 million Canadian in Tilray Class 2 common stock at closing and $40 million in common stock, the company said in a press release.
"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," said company official 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."
High Park and its affiliates have fulfilled adult-use supply agreements and purchase orders across Canada, according to Thursday's release.
Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park develops, produces, sells and distributes a broad-based portfolio of adult-use cannabis brands and products.
Tilray shares picked up a penny mid-morning Thursday to $27.21.
