Tilray, Inc., a global leader in cannabis research, cultivation, production and distribution, is pleased to announce the closing of a previously announced definitive agreement to acquire all of the issued and outstanding securities of Natura Naturals Holdings Inc., the parent company of a licensed cultivator of cannabis. Moving forward, the Natura facility will operate under the name High Park Gardens and serve as an additional cultivation facility to serve the medical and adult-use market in Canada.
As a result of the finalized acquisition, Tilray and High Park have obtained the 662,000 square-foot greenhouse cultivation facility, of which 155,000 square feet are currently licensed. There are also options to expand the facility to further increase production capacity. Natura, through a wholly-owned subsidiary located in Leamington, Ontario, is a licensed cultivator under the Cannabis Act specializing in the greenhouse cultivation.
Under the terms of the definitive agreement and subject to certain customary adjustments, Tilray delivered C$35 million at closing, comprised of C$15 million in cash and C$20 million in Tilray Class 2 common stock. Natura shareholders will receive their pro rata portion of the C$15 million closing cash amount, after the deduction of certain transaction expenses incurred by Natura and subject to applicable withholding taxes. 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 resulting in a total purchase price of C$70 million if fully achieved.
“We’re very pleased to add High Park Gardens to our growing global footprint” said Greg Christopher, EVP Operations. “This acquisition marks another milestone in building a strong supply chain to give Canadians safe access to quality tested cannabis medicine and products.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Tilray currently operates three state-of-the-art facilities in Canada and one in Portugal: Tilray Canada Ltd. (“Tilray Canada”), a Nanaimo, British Columbia-based research, cultivation and processing facility which primarily serves the Canadian and global medical cannabis market; Tilray Portugal, Unipessoal, Lda. (“Tilray Portugal”), located in Cantanhede, a research, processing, cultivation, packaging and distribution facility which will primarily serve the medical cannabis market in Europe; High Park Farms Ltd. (“High Park Farms”), an Enniskillen, Ontario-based cultivation and processing facility delivering cannabis products for the Canadian market; and the newly-licensed High Park processing facility in London, Ontario, which will exclusively serve the adult-use market in Canada. The Natura facility, which will operate as High Park Gardens, will cultivate cannabis products in Leamington, Ontario for the adult-use and medical market in Canada and work collaboratively with High Park’s existing Ontario operations.
Tilray and High Park also have cannabis supply agreements in place with cannabis licensees throughout Canada and most recently signed an exclusive sale, supply, distribution and marketing agreement to deliver High Park adult-use cannabis products in Québec with ROSE LifeScience. The proximity of High Park Gardens to Tilray and High Park’s existing Ontario operations will be valuable in the long-term collaboration of cannabis research, cultivation and processing within the Company.
Prior to distribution, all cannabis products cultivated at High Park Gardens will adhere to Tilray and High Park’s stringent quality assurance standards. The increased supply resulting from such cultivation will allow Tilray and High Park to expand its capacity to supply the Canadian market with high-quality branded cannabis products.
Date: February 25, 2019
Source: CannabisFN
