TLRY moves higher
Early on February 20, Tilray (TLRY) was moving higher after it announced the acquisition of Manitoba Harvest. The purchase price for Manitoba Harvest was 419 million Canadian dollars, and the latter will become Tilray’s wholly owned subsidiary.
In its press release, Tilray stated, “The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with cannabinoids, including cannabidiol (CBD).” The company further added that this partnership will enable Tilray to develop new CBD and hemp-based products for the North American market, especially in the US and Canada. Manitoba Harvest supplies products to over 16,000 retailers in the US and Canada. This acquisition is expected to be a big advantage to Tilray.
Ever since the US legalized hemp through the Farm Bill last year, cannabis players including Canopy Growth (WEED) have been active in gaining market share through partnerships and acquisitions. Earlier this year, Canopy Growth received a license from the State of New York to operate a hemp-based facility.