CannabisNews420.com – Cannabis/Marijuana Industry News
Canadian cannabis producer Tilray is going on a shopping spree these days, as the company acquired one and moved to acquired another company in the span of just a few days.
Canadian cannabis producer Tilray is better known for the never-before-seen volatility of its stock last year than the quality of its cannabis as the company didn’t produce as much up until now.
Tilray was one of the cannabis companies with the biggest ratio disparity when comparing their market cap and the amount of canopy they can grow, as it was valued at a couple billion while growing just a few hundred kilos of marijuana every quarter.
However, that’s all going to change now.
Not only is Tilray expanding their cannabis growing surface by acquiring Natura Naturals Holdings Inc, but they also moved into the American hemp market as the company officials announced the acquisition of hemp food maker Manitoba Harvest.
Entering the US market
Tilray is one of the few big market cap companies in Canada that haven’t yet announced their plan and improved their US-based hemp operations in order to prepare for the up-and-coming CBD market.
With the Farm Bill in place now, the US market for hemp-based CBD products is poised to explode in 2019, and other producers already made their moves.
Aurora Cannabis has its subsidiary HempCo, and Canopy Growth invested over $100 million in the development of the Hemp Industrial Park in New York.
The Natura Naturals acquisition is the smaller of the two, as Tilray paid “only” C$35 million comprised of C$15 million in cash and C$20 million in Tilray Class 2 common stock.
The greenhouse facility which was formerly under the ownership of Natura Naturals will now carry the name High Park Gardens and will serve for growing medical and recreational cannabis.
The bigger acquisition came just a few days ago as the company decided to announce their deal with the hemp food maker Manitoba Harvest.
Manitoba Harvest was previously owned by the Compass Group Diversified Holdings LLC which acquired a controlling stake in the company in 2015.
Compass Group Diversified Holdings LLC helped expand the company’s network of retail stores and upped that number to over 7,000.
The US market was initially estimated to be worth around $22 billion USD by the year 2022, which is up from the current estimate of $600 million USD.
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