CBD product push: Tilray buying hemp food brand Manitoba Harvest
Tilray shares rose sharply Wednesday after the Canadian pot company said it would acquire Manitoba Harvest, billed as the world’s largest manufacturer of hemp-based foods.
The company said it will pay more than $300 million in cash and stock in the transaction. Tilray said the deal will allow it to “accelerate” sales of cannabinoid (CBD)-infused products in the U.S. and Canada, where demand among consumers has grown due to its perceived wellness benefits even as some cities have imposed renewed regulations.
“Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories,” Tilray President and CEO Brendan Kennedy said in a statement. “We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TLRY | TILRAY BRANDS INC. | 1.77 | -0.07 | -3.81% |
Manitoba will operate as a subsidiary of Tilray, and the two companies will develop a new range of CBD and hemp-based wellness products, according to a press release. Manitoba’s products are available in more than 16,000 stores throughout the U.S. and Canada.
The deal comes after hemp was legalized with the passage of the Farm Bill last December.
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Several major companies have explored an entry or made investments in the legal cannabis marketplace in recent months, including Constellation Brands and Molson-Coors Brewing. Tilray partnered with Anheuser-Busch last December to research potential CBD-infused beverages.