Tilray to acquire adult-use cannabis retailer FOUR20
Tilray acquisition of FOUR20 : Tilray, a Canadian pharmaceutical and cannabis company, through its wholly-owned subsidiary High Park Holdings has agreed to acquire 420 Investments (FOUR20) in an all-stock transaction valued at C$110 million.
US-based FOUR20 is an adult-use cannabis retail operator which offers retail experience on high-quality product selection, education, and community to adult-use cannabis consumers.
With six licensed retail stores, FOUR20 has 16 additional locations in Alberta, including Canmore, Calgary, and Edmonton.
Tilray and High Park will expand into other Canadian provincial markets where Licensed Producer retail ownership will be permitted in the future by leveraging FOUR20’s retail expertise and brand and market knowledge.
Upon completion of Tilray acquisition of FOUR20, FOUR20 will operate as a wholly-owned subsidiary of Tilray and will continue to offer consumers brands and products from craft and mainstream producers, including High Park.
Andrew Pucher – chief corporate development officer at Tilray, commenting on Tilray acquisition of FOUR20, said: “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.
“With FOUR20, we will elevate the retail experience for consumers by offering the best quality-tested products while preparing for the next wave of legalized product launches taking place by year’s end.”
FOUR20 will secure C$70 million in Tilray Class 2 common stock at closing and C$40 million in Common Stock subject to the achievement of certain performance milestones under the agreement.
Tilray acquisition of FOUR20 is subject to regulatory approvals and is anticipated to close by the end of Q1 2020.