Tilray will initially pay C$277.5 million (C$150 million in cash and C$127.5 million in Tilray shares) at the close of the deal, expected within the next 30 days. The remainder will be paid six months after closure and achievement of certain milestones.
The combined company will bring nutritious hemp foods and supplements to more households across the United States and Canada. The acquisition also would expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with cannabinoids, including cannabidiol (CBD). It gives Tilray an immediate position in the North American hemp CBD market. As such, Tilray expects to launch CBD-derived products in the United States as early as this summer.
The planned acquisition comes within a few months of Trump’s farm bill, which legalized commercial production of hemp in the country. Some analysts estimate that the U.S. CBD market could be worth more than $20 billion by 2022, up from the current $600 million. The Hemp Business Journal projects that the market will grow to $1.3 billion by 2022, reflecting an impressive compound annual growth rate (CAGR) of more than 27%.