High Park enters into sale, supply, distribution and marketing agreement with ROSE as its exclusive partner in Québec
NANAIMO, B.C. – Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis production and distribution, today announced an investment in Québec-based cannabis producer, ROSE LifeScience Inc. (“ROSE”) and an exclusive sale, supply, distribution and marketing agreement between High Park Farms Ltd. (“High Park”), a wholly-owned subsidiary of Tilray, and ROSE.
Tilray will subscribe for 41 Class “A” Common shares (12%) in the capital of ROSE for a subscription amount of C$7.5 million pursuant to a subscription agreement (the “Subscription Agreement”). At the time of closing of this subscription the only issued and outstanding equity of ROSE will be 344 Class “A” Common shares and there will be no outstanding options, warrants or other rights to acquire equity of ROSE.
In connection with the subscription agreement, High Park and ROSE have entered into an exclusive sale, supply, distribution and marketing agreement to deliver High Park adult-use cannabis products in Québec including existing brand, Dubon™, which is exclusively available in Québec through the Société québécoise du cannabis (SQDC). The two companies may also collaborate on additional co-branded adult-use cannabis products or brands exclusively for this market.
The investment in ROSE represents a commitment to increase supply to the Québec market and the opportunity to deliver consumers locally-grown products. ROSE has begun construction of a 54,000 square-foot cannabis cultivation facility on its land in Huntingdon, Québec and has applied for a Health Canada cultivation, processing and sales license. Once fully-licensed, ROSE will be the exclusive supplier of High Park’s adult-use cannabis products in the Québec market.
“Tilray and High Park value our partnership with the SQDC and our shared commitment to creating a responsible and safe legal market for cannabis,” says Adine-Fabiani Carter, Chief Marketing Officer, High Park. “This investment in a Québec-owned and operated organization will enable High Park to better serve this partnership and the adult-use market in Québec.”