skip to Main Content
Tilray® Closes Transaction Acquiring Manitoba Harvest, the World’s Largest Hemp Foods Company

PRESS RELEASE

Closing of acquisition officially unites cannabis pioneer with leading natural food CPG company with vision to create hemp and CBD-infused food and wellness products for North America

NANAIMO, B.C. – Tilray, Inc. (“Tilray” or “the Company”) (NASDAQ:TLRY), a global leader in cannabis research, cultivation, production and distribution, is pleased to announce the closing of a previously announced definitive agreement (the “Agreement”) in which Tilray has acquired all of the issued and outstanding securities of FHF Holdings Ltd. (“Manitoba Harvest”), from Compass Group Diversified Holdings, LLC (“The Compass Group”) (NYSE:CODI) and other shareholders of Manitoba Harvest (the “Transaction”). Under the terms of the Agreement, Tilray has acquired Manitoba Harvest on a cash and debt-free basis, for an aggregate maximum purchase price, including cash and class 2 Common Stock in the capital of Tilray (“Tilray Shares”), of C$419 million pending the achievement of certain milestones after the closing of the Transaction.

Founded in 1998, Manitoba Harvest is the world’s largest hemp food manufacturer and a leader in the natural foods industry. It produces, manufactures, markets and distributes a broad-based portfolio of hemp-based consumer products, which are sold in over 16,000 stores at major retailers across the U.S. and Canada. Products in the Manitoba Harvest portfolio include: Hemp Hearts™, Hemp Oil™, Hemp Yeah! ™ granola, Hemp Yeah! ™ protein powder and Hemp Bliss™ milk. Manitoba Harvest has plans to launch a line of CBD containing Broad Spectrum Hemp Extracts as well as a line-up of Hemp Yeah! wellness bars this summer.

Together, Tilray and Manitoba Harvest will strive to grow both companies’ revenue while bringing nutritious hemp foods and supplements to more households across the U.S. and Canada. The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest’s expertise in working with cannabinoids, including cannabidiol (CBD), to Tilray. By leveraging Manitoba Harvest’s established distribution network, Tilray plans to accelerate its expansion into the U.S. and Canadian markets, where legal, for CBD products. Manitoba Harvest also brings to Tilray an experienced team and manufacturing capabilities, including the addition of two high quality BRC AA+ certified manufacturing facilities as well as significant sales and distribution capabilities.

“We’re proud to officially welcome Manitoba Harvest to Tilray’s growing portfolio of brands and network of experts,” Brendan Kennedy, Tilray President and CEO. “We look forward to working collaboratively to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”

“We are excited about being an important part of the growth strategy for Tilray,” said Bill Chiasson, Manitoba Harvest CEO. “By leveraging our combined strengths and capabilities, we hope to accelerate our mission of transforming consumer health through the power of hemp.”

Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray, leveraging the Tilray team’s global cannabis industry expertise and other strategic partners. Manitoba Harvest will continue to operate its seed-to-shelf supply chain model and leverage its retail relationships across North America. Tilray and Manitoba Harvest will also work together to develop innovative new CBD wellness products and hemp-based consumer food products.

Additional Transaction Details
Of the aggregate maximum C$419 million purchase price, Tilray paid C$277.5 million at closing, comprised of C$150 million in cash and C$127.5 million in Tilray Shares. Six months after closing, Tilray will pay C$92.5 million, comprised of C$50 million in cash and C$42.5 million in Tilray Shares. Tilray will issue an additional C$49 million in Tilray Shares based on Manitoba Harvest achieving certain performance milestones in 2019, such amount to be reduced to the extent that some or all of the milestones are not achieved. The transaction will be subject to normal post-closing adjustments.

Blake, Cassels & Graydon LLP acted as Canadian legal counsel to Tilray and Cooley LLP acted as Tilray’s U.S. legal counsel. Cowen provided a fairness opinion to Tilray’s board of directors in connection with the transaction.

Stikeman Elliott LLP acted as legal counsel to sellers. Jefferies LLC acted as financial advisor to Compass Group Diversified Holdings LLC in connection with the transaction.

For more information, please visit www.tilray.com.
Cautionary note regarding forward-looking statements:
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of Canadian securities laws, or collectively, forward-looking statements. Forward-looking statements in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions and include statements relating to Tilray’s acquisition of Manitoba Harvest and the expected benefits resulting therefrom, the ability of Manitoba Harvest to achieve the performance milestones and earn the payments associated therewith, or any future plans relating to Tilray or Manitoba Harvest, including beginning or increasing Tilray’s activities as it relates to CBD and wellness products, entering into the U.S. CBD market, growing the revenue of Tilray and Manitoba Harvest, the launch of Manitoba Harvest’s CBD line of products and Tilray’s global growth strategy. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of the synergies between Tilray and Manitoba Harvest, that Manitoba Harvest’s past performance is indicative of future performance, current and future market conditions, the current and future regulatory environment and future approvals and permits. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Please see the heading “Risk Factors” in Tilray’s Quarterly Report on Form 10-Q, which was filed with the Securities and Exchange Commission and Canadian securities regulators on November 14, 2018, for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. Tilray does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.
This Post Has 0 Comments

Leave a Reply

Your email address will not be published.

Recent Stories

Majority of Md. voters favor legalizing recreational pot, Post-UMD poll finds

A large majority of registered voters in Maryland say they support legalizing recreational marijuana use, just weeks before voters will decide the question in the November election, a Washington Post-University of Maryland…

Ohio medical marijuana patients still unhappy with prices, though Michigan’s cannabis market may influence their expectations

COLUMBUS, Ohio – A new Ohio State University study found that for the first time a majority of patients are satisfied with Ohio’s medical marijuana program. Prices, though, appear to…

One small cannabis grower’s survival plan? To be the best

Six years ago, just weeks before California voters legalized cannabis for adult recreational use, I visited a couple named Swami Chaitanya and Nikki Lastreto in a remote part of Mendocino…

Vermont cannabis retailers stymied by roadblocks in effort to sell edibles

Saturday was day one for retail sales of recreational cannabis in Vermont, and though there was a variety of THC products available at retailers across the state, one item was…

More Categories

Back To Top
×Close search
Search