CANADA: Tilray, Inc., a global leader in cannabis research and production, today announced that it has completed an acquisition of its existing import and distribution partner Alef Biotechnology SpA. The acquisition will allow Tilray to import, produce and distribute Tilray branded medical cannabis products in Chile and to create a hub to distribute Tilray products throughout Latin America.
Tilray purchased all the outstanding equity of Alef for approximately C$5,000,000. The purchase was comprised of approximately C$250,000 in cash paid at closing, and C$4,750,000 in Tilray Class 2 common stock, subject to a standard working capital adjustment and Alef achieving certain business milestones within a twelve-month period after closing.
“Today’s announcement marks another milestone for Tilray as we expand our global footprint and solidify our presence in Latin America by officially welcoming Alef to the Tilray team,” said Brendan Kennedy, President and Chief Executive Officer of Tilray. “The Chilean government has been a pioneer legitimizing and regulating medical cannabis in Latin America, and we are thrilled to be investing in one of the region’s most exciting markets for biopharmaceutical development.”
Tilray previously announced a partnership with Alef in February 2017 to import and distribute Tilray products in Chile and Brazil. Alef is currently licensed by the Chilean government to commercially produce medical cannabis and is developing a state-of-the-art facility to domestically produce and process medical cannabis products. Chilean law permits patients to access medical cannabis products under the supervision of a recommending physician.
As a part of the acquisition, Tilray will retain current Alef employees Alan Nudman as Chief Executive Officer, and Ariel Nudman, as Chief Sales Officer. Alan and Ariel will oversee the strategic growth of Alef Biotechnology under the global leadership of Tilray.
“The agreement with Tilray is an incredibly exciting moment for Alef and the entire medical cannabis community in Latin America,” says Alan Nudman, Chief Executive Officer of Alef. “In partnership with Tilray, Alef was the first company to offer medical cannabis products through pharmacies anywhere in the Americas and we are looking forward to increasing access for patients throughout Latin America through this acquisition.”