Tilray, Inc. (NASDAQ: TLRY), wholly-owned subsidiary of Privateer Holdings, announced this morning that the company has completed an acquisition of Alef Biotechnology SpA. Tilray had already had an agreement in place with the Chilean medicinal cannabis company to import and distribute cannabinoid derived products in South America but, has chosen to acquire the company in order to expand operations within the country.
This new acquisition for Tilray will allow the company to further increase its imports, production capacity, and distribution channels for the companies branded cannabis products in Chile. Tilray hopes that Chile will become a starting point for expansion throughout Latin America.
Under the terms of the agreement, Tilray will purchase all the outstanding shares of Alef Biotechnology for C$5,000,000. The purchase was comprised of C$250,000 in cash paid at closing, and C$4,750,000 in Tilray Class 2 common stock.
Tilray has recently raised a total of US$150 million dollars during its NASDAQ IPO. The Canadian company currently has import, export deals with strategic partners located in Europe, Africa, South America, Asia, and North America.
“The agreement with Tilray is an incredibly exciting moment for Alef and the entire medical cannabis community in Latin America,” says Alan Nudman, Chief Executive Officer of Alef. “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.”