Tilray Inc (NASDAQ: TLRY)
Tilray on Tuesday announced that it has completed its acquisition of Chile-based Alef Biotechnology SpA, a company that helps it import and distribute medical cannabis products in the country and Brazil. The acquisition now enables them to produce, import, and distribute the products in both countries, as well as to establish new distribution links in other Latin American markets.
Brendan Kennedy, President and Chief Executive Officer of $TLRY issued these remarks on the acquisition “Today’s announcement marks another milestone for Tilray as we expand our global footprint and solidify our presence in Latin America by officially welcoming Alef to the Tilray team. The Chilean government has been a pioneer legitimizing and regulating medical cannabis in Latin America, and we are thrilled to be investing in one of the region’s most exciting markets for biopharmaceutical development.”
The company purchased all the outstanding shares of Alef Biotechnology for around C$5 million ($3.86 million). The purchase consisted of C$4.75 million in $TLRY Class 2 common stock and C$250,000 in cash paid at closing. The transaction is subject to Alef Biotechnology achieving certain business milestones within a period of twelve months after closing and a standard working capital adjustment.
Under the terms of the agreement, $TLRY will retain all the current chief executive officer of Alef Biotechnology Alan Nudman, with Ariel Nudman remaining as Chief Sales Officer. The two executives are expected to oversee the strategic expansion of Alef Biotechnology on behalf of $TLRY. The Canadian cannabis company is also going to retain all current employees of Alef.
Alan Nudman had this to say, “The agreement with Tilray is an incredibly exciting moment for Alef and the entire medical cannabis community in Latin America. In partnership with Tilray, Alef was the first company to offer medical cannabis products through pharmacies anywhere in the Americas and we are looking forward to increasing access for patients throughout Latin America through this acquisition,”
Tilray shares dipped $5.70, or 4.07% to $134.30 in early hours of regular trading Tuesday in New York. The dip might reflect the arbitrage investing activity that frequently accompanies deals in which an acquirer funds its purchase with stock.
Tilray Inc. Company Profile
Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids. They are the first licensed producer of medical cannabis in the world to have its facility Good Manufacturing Practices (GMP) certified in accordance with European Medicine Agency (EMA) standards.
The company currently serves tens of thousands of patients, physicians, pharmacies, governments, hospitals, and researchers in eight countries spanning four continents through its affiliated entities in Australia and New Zealand (Tilray Australia New Zealand Pty Ltd), Canada (Tilray Canada Ltd), Germany (Tilray Deutschland GmbH), and Portugal (Tilray Portugal Unipessoal Lda). – Tilray