Tilray has bought out a business partner to solidify its foothold in South America.
The Nanaimo-based company announced Tuesday in a press release that it has acquired its existing Chilean-based import and distribution partner Alef Biotechnology SpA.
The approximately $5-million purchase comprised of $4.75 million in Tilray Class 2 common stock plus $250,000 cash, will allow Tilray to import, produce and distribute Tilray medical cannabis products in Chile and create a distribution hub for its products throughout the region, according to the press release.
“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,” Brendan Kennedy, Tilray president and CEO, said in the release. “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.”