Tilray, ABG Cannabis Products Expected by Year-End
Tilray expects to have the first cannabis and cannibidiol (CBD) products based on Authentic Brands Group (ABG) brands in North America by year-end, with expansion to international markets as “regulations permit,” CEO Brendan Kennedy said in releasing Q4 earnings.
Under its revenue-sharing agreement with ABG, Tilray will have access to more than 50 brands, with Nine West expected to be among the first ABG labels for CBD-based products, Kennedy said. Hemp-based food products supplier Manitoba Harvest, which Tilray acquired last fall for $312 million, will supply materials for ABG products.
The deal with ABG calls for Tilray to initially pay ABG $100 million and as much as $250 million in cash and stock subject to the meeting of regulatory and commercial milestones. Tilray recently signed an agreement to supply Green Growth Properties with CBD oil for pain-relief products under ABG’s Greg Norman brand.
“When we look at new consumers of CBD and THC, distributors and retailers want relationships with brands that they already know and trust, which is why we partnered with ABG,” Kennedy said.
Tilray’s net loss widened to $31 million in Q4 ended Dec. 31 from $2.9 million a year earlier. Net revenue rose to $15.5 million from $5.1 million, benefitting from the launch last fall of recreational marijuana sales in Canada.
Tilray, Mark Castaneda, CFO, 844=845-7291