Tilray has entered into a definitive agreement pursuant to which Tilray, through a wholly-owned subsidiary of High Park Holdings will acquire all of the issued and outstanding securities of 420 Investments, an adult-use cannabis retail operator headquartered in Calgary, Alberta.
"FOUR20 currently operates six licensed retail locations and has 16 additional high-traffic locations secured in desirable locations in Alberta, including Canmore, Calgary and Edmonton," the team with the company explains. "Tilray and High Park will leverage FOUR20’s retail expertise and brand and market knowledge to expand into other Canadian provincial markets where Licensed Producer retail ownership will be permitted in the future."
“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,” says Tilray Chief Corporate Development Officer Andrew Pucher.
According to them, under the terms of the Agreement, Tilray will deliver up to C$110M consisting of C$70M in Tilray Class 2 common stock at closing and $40M in Common Stock subject to the achievement of certain performance milestones by FOUR20.
"FOUR20 will operate as a wholly-owned subsidiary of Tilray and will continue to offer consumers a diverse selection of brands and products from craft and mainstream producers including High Park."
The transaction is subject to regulatory approval(s). Completion of the transaction will be subject to customary terms and conditions, including approval by FOUR20 shareholders and court approval of the arrangement. It is anticipated that the closing of the transaction will be completed by the end of Q1 2020. Canaccord Genuity Corp. provided a fairness opinion to Tilray’s board of directors in connection with its approval of the transaction.
For more information:
Tilray
tilray.com