One of the cannabis industry’s largest players has announced a substantial investment in the hemp food industry. While Tilray Inc (NASDAQ: TLRY) has been making a variety of purchases, including a recent $35 million greenhouse acquisition, this recent investment would be among the largest in the company’s history. Tilray announced they would be acquired the world’s largest hemp food company, Manitoba Harvest, in a deal valued at $317 million between cash and Tilray stock.
Manitoba Health is current the global leader in hemp food manufacturing as well as a major player in the natural foods industry. The company manufactures, markets, and distributes a variety of hemp-based consumer products which are sold to over 16,000 stores across retailers in Canada and the U.S.
“Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories,” said Tilray CEO Brendan Kennedy. “We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”
The acquisition would see Tilray expand into the natural foods market while taking advantage of Manitoba Health’s established distribution network to help retail their own products. Tilray also will be adding a veteran manufacturing and marketing team experienced in the hemp market, alongside a number of high-end certified manufacturing facilities which will help roll out their CBD-derived products in the U.S. as early as the summer.
“We are excited about being an important part of the growth strategy for Tilray,” added Manitoba Harvest CEO Bill Chiasson. “By leveraging our combined strengths and capabilities, we will be able to accelerate our mission of transforming consumer health through the power of hemp.”
In response, Tilray’s stock price jumped a substantial 6.9 percent today within the first hour of trading, settling the day at a respectable 5.3 increase. Currently, Tilray is considered one of the most “overvalued” stocks based on conventional financial ratios by Wall Street analysts.
Manitoba Harvest Company Profile
Headquartered in Winnipeg, Manitoba, and founded in 1998, Manitoba Harvest is a pioneer and global leader in branded, hemp-based foods. The company is the world’s largest vertically-integrated hemp food manufacturer and is strategically located near its supply base in Canada. Manitoba Harvest’s 100% all-natural product lineup includes hemp hearts, hemp protein powder and hemp snacks and are currently carried in about 16,000 retail locations across the U.S. and Canada. – Manitoba Harvest
Tilray 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