Tilray (NASDAQ:TLRY) is one of the latest cannabis companies to push into the retail space.
On Thursday (August 29), the BC-based cannabis firm announced it had signed a deal to acquire all of the issued and outstanding securities of 420 Investments (FOUR20) in an all-share agreement valued at C$110 million.
FOUR20 is an adult-use cannabis retail operator based in Calgary, Alberta, and currently has six active brick-and-mortar locations in the province.
Shares of the company opened at US$27.61 on Thursday. Tilray prices saw a bit of fluctuation over the trading day eventually closing at US$26.74, representing a price decrease of 1.69 percent for the day
Tilray shares have slumped sharply in August following its Q2 2019 earnings report, in which the company posted a net loss of US$35.1 million, or US$0.36 per share, for the quarter. The company reached a year-high of US$100.15 in mid-January, since then the value of its shares has dropped by 73 percent.
Tilray will give FOUR20 C$70 million in class 2 common shares when the deal is completed and an additional C$40 million in common shares with the achievement of certain performance milestones.
The deal is set to be completed by the end of the first quarter of 2020.
In addition to its current lineup of stores, FOUR20 is also bringing 16 secured locations across Alberta as part of the transaction. These stores are planned to open in Canmore, Calgary and Edmonton, according to Tilray.
In February, FOUR20 reported it had reached C$5 million in sales, an amount based off of two operating locations in Calgary.
While the retailer only holds assets in Alberta, the marijuana producer said it plans on using FOUR20’s retail expertise to expand into other provincial markets in Canada.
Tilray’s chief corporate development officer Andrew Pucher said his company aims to enhance the purchasing experience for consumers as the market prepares for the legalization of edibles and infused products later this year.
Tilray will be completing the deal through its subsidiary, High Park Holdings, which will be subject to regulatory, shareholder and court approval.
Once the transaction is completed, FOUR20 will operate as a wholly-owned subsidiary of Tilray. The producer also indicated the store would offer branded products under the High Park name.
FOUR20’s current stores are minimalist in their style and boast teams of experts to help consumers with their purchases.
Alberta’s marijuana market has been highly active since Canada legalized the recreational use of cannabis. Between October 2018 and June 2019, the western Canadian province spent the most on recreational cannabis in the country at C$123.7 million, recent data from Statistics Canada shows.
Ontario and Quebec came in second and third place with C$121.6 million and C$119.2 million spent, respectively. The Northwest Territories spent the least at C$14.7 million.
Alberta also has the most retail locations for legal marijuana in the country, totaling at 277 stores. Ontario is a distant second with 75 stores having just given out 42 retail licenses as part of its recent second lottery.
Tilray’s results for its Q2 2019 period noted a 371.1 percent increase in revenue to US$45.9 million compared with the same earnings report from last year. The company attributed the increase, in part, to the acquisition of Manitoba Harvest in February. According to the press release, Manitoba Harvest is the world’s largest producer of hemp food products and distributes a variety of hemp-based consumer goods in over 16,000 stores across Canada and the US.
While total revenue was at US$42 million excluding excise tax, the producer still reported net losses of US$35.1 million, or US$0.36 per share, for the quarter.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.