The conditions of the deal are as follows:
- Tilray will leverage ABG’s portfolio of brands to market, distribute and develop consumer cannabis products around the globe, according to current regulations. -The initial focus will be on CBD in Canada and the U.S.
- Tilray will be the supplier of cannabinoid for the products.
- Tilray will pay ABG $100 million and up to $250 million in stocks and cash, subject to certain regulatory and commercial milestones.
- Tilray will be entitled to up to 49 percent of net revenue of all cannabis products under the ABG brands, with a promise of $10 million each year for 10 years.
“We are thrilled to partner with ABG, a global leader known for expertly managing and marketing an owned portfolio of iconic brands,” says Brendan Kennedy, president and chief executive officer, Tilray. “As we work to expand Tilray’s global presence, this agreement leverages our complementary strengths and will be accretive to our shareholders as we reach new consumers across the entertainment, fashion, beauty, home and health and wellness sectors. We look forward to working with ABG to bring unique and sought-after branded cannabis products to the marketplace.”