Tilray Brands, Inc. (NASDAQ:TLRY) agreed to acquire a promissory note from Ontario-based Double Diamond Holdings Ltd (DDH) for $23.8 million, according to a regulatory filing.
DDH is a joint venture with Aphria Inc., Tilray's direct and wholly-owned subsidiary, in Aphria Diamond.
In return, Tilray issued 13,217,588 shares of its common stock at $0.0001 per share to DDH.
The company said no underwriter took part in the offer and sale of the consideration shares, and no commission or other remuneration was paid or given directly or indirectly in connection with the deal.
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Tilray's Craft Beer Business
The news comes on the heels of Tilray's announcement that it has completed the previously announced acquisition of Atwater Brewery, from Molson Coors Beverage Company (NYSE:TAP). Atwater Brewery was one of four craft breweries Tillray previously said it would acquire. The medical cannabis giant acquired Hop Valley Brewing Company, Terrapin Beer Co., and Revolver Brewing, in early September.
The acquisition bolstered Tilray's leadership position in the U.S. craft beer market as the 5th largest craft brewer in the country and the top craft brewer in the Pacific Northwest and Georgia. Tilray is based in Canada.
Known for brands like SweetWater Brewing and Montauk Brewing Company, Tilray earlier said it expects a 30% growth in its beer business from this acquisition.
Irwin D. Simon, the company's chairman and CEO, praised the move. "This strategic acquisition creates additional growth opportunities for our global beverage business, which reinforces our commitment to enhancing shareholder value," he said.
Price Action: Tilray's shares traded 1.11%% higher at $1.8199 per share at the time of writing on Tuesday morning.
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