01 March 2019 | News
Under the terms of the Agreement, Tilray has acquired Manitoba Harvest on a cash and debt-free basis
Tilray, company specialized in cannabis research, cultivation, production and distribution has announced the closing of a previously announced definitive agreement in which Tilray has acquired all of the issued and outstanding securities of FHF Holdings Ltd. (“Manitoba Harvest”), from Compass Group Diversified Holdings, LLC and other shareholders of Manitoba Harvest.
Under the terms of the Agreement, Tilray has acquired Manitoba Harvest on a cash and debt-free basis, for an aggregate maximum purchase price, including cash and class 2 Common Stock in the capital of Tilray (“Tilray Shares”), of C$419 million pending the achievement of certain milestones after the closing of the Transaction.
Manitoba Harvest is hemp food manufacturer and natural foods industry. It produces, manufactures, markets and distributes a broad-based portfolio of hemp-based consumer products, which are sold in over 16,000 stores at major retailers across the U.S. and Canada.
The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest’s expertise in working with cannabinoids, including cannabidiol (CBD), to Tilray. By leveraging Manitoba Harvest’s established distribution network, Tilray plans to accelerate its expansion into the U.S. and Canadian markets, where legal, for CBD products.
Brendan Kennedy, Tilray President and CEO said, “We’re proud to officially welcome Manitoba Harvest to Tilray’s growing portfolio of brands and network of experts. We look forward to working collaboratively to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”
Bill Chiasson, Manitoba Harvest CEO said, “We are excited about being an important part of the growth strategy for Tilray. By leveraging our combined strengths and capabilities, we hope to accelerate our mission of transforming consumer health through the power of hemp.”
Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray, leveraging the Tilray team’s cannabis industry expertise and other strategic partners. Manitoba Harvest will continue to operate its seed-to-shelf supply chain model and leverage its retail relationships across North America. Tilray and Manitoba Harvest will also work together to develop innovative new CBD wellness products and hemp-based consumer food products.