Tilray to Buy Natura Naturals, Doubling Canadian Capacity
(Bloomberg) -- Tilray reports a definitive pact to buy Natura Naturals Holdings, the parent company of a licensed cultivator of cannabis based in Leamington, Ontario. The deal will approximately double Tilray’s Canadian cultivation capacity, according to Cowen analyst Vivien Azer.
- Tilray to pay C$35 million at closing, comprised of C$15 million cash and C$20 million of Class 2 shares
- The deal includes Natura’s 662,000 square-foot greenhouse, including the 155,000 square-feet that are currently licensed, and all subsequent output
- Upon Natura reaching certain quarterly production milestones over the following twelve-month period, up to C$35 million of Tilray common stock may become payable
- Deal fits Tilray’s strategy of purchasing cannabis from third-party suppliers and will help it address supply shortages in the Canadian recreational market, Azer writes in a note
- Tilray falls as much as 2.8% in early trading in New York
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