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

To contact the reporters on this story: Polina Noskova in New York at pnoskova@bloomberg.net;Kristine Owram in Toronto at kowram@bloomberg.net

To contact the editors responsible for this story: Chakradhar Adusumilli at cadusumilli@bloomberg.net, Courtney Dentch

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