Tilray Finalizes $35 Million Greenhouse Grower Purchase

high park gardens

Tilray Inc (NASDAQ:TLRY) announced today it had concluded a major acquisition within the Canadian market. The agreement would see Tilray spend $35 million to acquire all outstanding shares of Natura Naturals Holdings Inc, the parent company of High Park Gardens and a significant licensed greenhouse cultivator serving both recreational and medical markets.

The acquisition would see Tilray acquiring a 662,000 square-foot greenhouse facility, of which 155,000 are currently operational and licensed. Under the terms of the agreement, Tilray gave $15 million in cash and $20 million in common stock. Tilray also offered Natura certain quarterly production milestones, a common feature in cannabis mergers and acquisitions, which would offer an additional $35 million should specific metrics be met.

We’re very pleased to add High Park Gardens to our growing global footprint,” said Greg Christopher, VP of operations at Tilray. “This acquisition marks another milestone in building a strong supply chain to give Canadians safe access to quality tested cannabis medicine and products.”

Most other analysts are looking forward to when Tilray will announce their fourth quarter and full fiscal year financial results. The company also announced today they would be making this information public on March 18th, with a live webcast planned on the same day.

Shares of Tilray barely moved today, inching upwards less than a percent in today’s trading session. Tuesday was a mixed day for cannabis companies overall, with most staying the same despite some interesting news developments.

The company holds the distinction of being one of the most expensive cannabis stocks, trading at around 155 times annualized last quarter revenues. As such, many see Tilray as being one of the most overvalued stocks in the industry, only recently surprised by Cronos Group (TSE: CRON).

However, most Tilray insiders are keeping their shares well after the company’s lockup expired, seen as a good sign by the markets that the company’s fundamentals remain strong.

Tilray Inc Company Profile

Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids. Tilray was 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

High Park Company Profile

Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park was established to develop, produce, sell, and distribute a broad-based portfolio of adult-use cannabis brands and products.

High Park is a wholly-owned subsidiary of Tilray, Inc., a global leader in cannabis cultivation, processing, and distribution. Tilray will continue to serve patients in Canada and around the world with a diverse range of pharmaceutical-grade medical cannabis products as High Park focuses on creating distinctive products for adult consumers. – BusinessWire