Shares of Tilray Inc (NASDAQ: TLRY) are up nearly 5.0% on Wednesday after the cannabis company announced strategic acquisition of Breckenridge Distillery to strengthen its position in the United States.
Financial terms of the deal are yet unknown
The Colorado-based distillery is an award-winning producer of distilled spirits broadly known for its bourbon whiskey collection. Tilray is confident the acquisition will add to its EBITDA right away.
Financial terms of the agreement are yet to be disclosed. Thanks to its merger with Aphria Inc, Tilray has SweetWater Brewing Co on its U.S. portfolio already.
The Canadian firm is awaiting federal legalisation of cannabis in the United States. Once the federal government gives the green signal, it intends to use Breckenridge to market cannabis-infused non-alcoholic distilled spirits across the country.
Tilray to hit $4.0 billion in revenue before 2025
Meanwhile, Tilray is making strategic acquisitions in line with its ultimate goal of becoming the industry leader. In the press release, CEO Irwin D. Simon said:
“Breckenridge Distillery is an iconic addition to our platform based on its portfolio of award-winning spirits, passionate consumer engagement, and a strong sales and distribution network. We see tremendous potential for Breckenridge and our existing SweetWater brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment.”
Tilray’s financial results for the first quarter were weaker than analysts’ expectations. It, however, forecasts revenue to hit $4.0 billion before the start of of 2025. Including the price action on Wednesday, TLRY is now up a little under 10% this year.
The post Tilray makes a strategic acquisition to expand footprint in the U.S. appeared first on Invezz.