Canadian cannabis company Tilray Inc. (TLRY) - Get Report was rising in premarket trading after the company announced that it was purchasing Natura Naturals Holdings Inc., the parent company of a licensed cultivator of cannabis, for $26.3 million in cash and stock.
Tilray will acquire Natura's 662,000 square-foot greenhouse cultivation facility as part of the deal, of which 155,000 square-feet are already currently licensed.
"We're very pleased to have an agreement in place that allows us to expand our capacity to supply high-quality branded cannabis products to the Canadian market," said Brendan Kennedy, Tilray President and CEO. "Through an extensive and thorough search for the right supply partner, we're pleased to have come to a mutually-beneficial agreement with Natura."
Tilray already has three cannabis research and development facilities in Canada and one in Portugal. The facility Tilray will acquired in the Natura deal is in close proximity to one of its facilities in Ontario and is "expected to be valuable in the long-term collaboration of cannabis research ... within the company."
The purchase is still subject to shareholder and court approval, which the company anticipates to be completed in the next 30 days.
Tilray shares were down 0.9% in morning trading Tuesday. The stock has risen 9.4% so far in 2019.