Tilray acquires Alef Biotechnology to expand cannabis presence in Latin America

Canadian cannabis company Tilray Inc (NASDAQ:TLRY) announced Tuesday it has completed the acquisition of its import and distribution partner Alef Biotechnology SpA to allow Tilray to import, produce and distribute its medical cannabis products in Chile and to create a hub to distribute its products throughout Latin America.

Tilray purchased all the outstanding equity of Alef for approximately C$5 million. The purchase was comprised of approximately C$250,000 in cash paid at closing, and C$4.75 million in Tilray Class 2 common stock. This is subject to a standard working capital adjustment and Alef achieving certain business milestones within a 12 month period after closing.

Brendan Kennedy, president and CEO of Tilray, said the deal allows the company to “expand our global footprint and solidify our presence in Latin America.”

Shares of Tilray were up 1.4% to $142.01 in Tuesday’s premarket.

READ: Tilray receives approval from US to import a medical cannabis study drug

Tilray had announced a partnership with Alef in February 2017 to import and distribute Tilray products in Chile and Brazil.

Alef is licensed by the Chilean government to commercially produce medical cannabis and is developing a facility to domestically produce and process medical cannabis products. Chilean law permits patients to access medical cannabis products under the supervision of a physician.

Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids currently for tens of thousands of patients in 12 countries in five continents. The company is based in Nanaimo, British Columbia.

Alef Biotechnology is licensed by the Chilean government to commercially produce medical cannabis. The company is focused on medical cannabis research and development for the treatment of various medical conditions. Alef is based in Santiago, Chile.

Story by ProactiveInvestors