Agreement leverages Tilray’s cannabis
expertise and ABG’s extensive portfolio of iconic brands that span
the entertainment, fashion, streetwear, active, home and health and
wellness sectors.
Today, Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis
production and distribution, and Authentic Brands Group (ABG), an
owner of a portfolio of global lifestyle and entertainment brands,
announced that they have signed a long-term revenue sharing
agreement to market and distribute a portfolio of consumer cannabis
products within ABG’s brand portfolio in jurisdictions where
regulations permit.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190115005217/en/
As the owner of more than 50 brands, ABG builds value
by partnering with an expansive network of best-in-class
manufacturers, operators and retailers. With a global retail
footprint of over 100,000 points of sale and more than 4,500
branded freestanding stores and shop-in-shops, ABG’s portfolio
generates approximately US$9 billion in retail sales annually.
Reaching nearly 250 million social media followers across key
digital platforms, ABG’s robust marketing arm drives growth and
engagement for its portfolio, including connecting its brands with
over 150 million targeted followers through Winston, its
proprietary micro-influencer network.
Under the terms of the agreement:
- The parties will leverage ABG’s
portfolio of brands to develop, market and distribute consumer
cannabis products across the world, as and where legal, with an
immediate focus on opportunities, including CBD, in Canada and the
U.S. subject to applicable and brand appropriate regulations.
- Tilray will be the preferred supplier
of active cannabinoid ingredients for such products.
- Tilray will initially pay to ABG US$100
million and up to US$250 million in cash and stock, subject to the
achievement of certain commercial and/or regulatory
milestones.
- Tilray will have the right to receive
up to 49% of the net revenue from cannabis products bearing ABG
brands, with a guaranteed minimum payment of up to US$10 million
annually for 10 years, subject to certain commercial and/or
regulatory milestones.
Through this agreement, ABG and Tilray join forces at the
intersection of science and brand to connect consumers with
innovative health and wellness products suited to their many
lifestyle needs.
“We are thrilled to partner with ABG, a global leader known for
expertly managing and marketing an owned portfolio of iconic
brands,” said Brendan Kennedy, Tilray President and CEO. “As we
work to expand Tilray’s global presence, this agreement leverages
our complementary strengths and will be accretive to our
shareholders as we reach new consumers across the entertainment,
fashion, beauty, home and health and wellness sectors. We look
forward to working with ABG to bring unique and sought-after
branded cannabis products to the marketplace.”
Daniel W. Dienst, ABG Executive Vice Chairman, said, “Tilray’s
unyielding focus on science, product quality, operational
excellence and innovation has allowed them to quickly emerge as a
leader in the cannabis industry. We see extraordinary potential for
cannabis in the fast-growing health and wellness category –
particularly for CBD products in the United States and around the
world - and are excited about this long-term partnership.”
Tilray’s financial advisor on the transaction was BofA Merrill
Lynch. Authentic Brands Group’s legal advisor on the transaction
was Paul, Weiss, Rifkind, Wharton & Garrison LLP.
About Tilray®Tilray (NASDAQ:TLRY) is a global
pioneer in the research, cultivation, production and distribution
of cannabis and cannabinoids currently serving tens of thousands of
patients and consumers in twelve countries spanning five
continents.
About Authentic Brands GroupAuthentic Brands Group (ABG)
is a brand development and marketing company, which owns a
portfolio of global entertainment and lifestyle brands.
Headquartered in New York City, ABG’s shareholders include
Leonard Green & Partners LP, General Atlantic LP, Lion Capital
LLP, its management, and employees. ABG manages, elevates, and
builds the long-term value of more than 50 consumer brands and
properties by partnering with best-in-class manufacturers,
wholesalers, and retailers. Its brands have a global retail
footprint in more than 100,000 points of sale across the luxury,
specialty, department store, mid-tier, mass, and e-commerce
channels and more than 4,500 branded freestanding stores and
shop-in-shops around the world. ABG is committed to transforming
brands by delivering compelling product, content, business, and
immersive brand experiences. It creates and activates original
marketing strategies to drive the success of its brands across all
consumer touchpoints, platforms, and emerging media. ABG’s
portfolio of iconic and world-renowned brands includes Marilyn
Monroe®, Mini Marilyn®, Elvis Presley®, Muhammad Ali®, Shaquille
O'Neal®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Michael
Jackson® (managed brand), Nautica®, Aéropostale®, Juicy Couture®,
Vince Camuto®, Herve Leger®, Judith Leiber®, Frederick's of
Hollywood®, Nine West®, Frye®, Jones New York®, Louise et Cie®,
Sole Society®, Enzo Angiolini®, CC Corso Como®, Hickey Freeman®,
Hart Schaffner Marx®, Adrienne Vittadini®, Taryn Rose®, Bandolino®,
Misook®, 1.STATE®, CeCe®, Chaus®, Spyder®, Tretorn®, Tapout®,
Prince®, Airwalk®, Vision Street Wear®, Above The Rim®, Hind®,
Thomasville®, Drexel®, and Henredon®. For more information, please
visit ABG-NYC.com.
Cautionary Note Regarding Forward-looking StatementsThis
press release contains “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and “forward-looking information” within the meaning of
Canadian securities laws, or collectively, forward-looking
statements. Forward-looking statements in this press release may be
identified by the use of words such as, “may”, “would”, “could”,
“will”, “likely”, “expect”, “anticipate”, “believe, “intend”,
“plan”, “forecast”, “project”, “estimate”, “outlook” and other
similar expressions and include statements relating to ABG
projected retail sales and the global success of the Tilray and ABG
agreement. Forward-looking statements are not a guarantee of future
performance and are based upon a number of estimates and
assumptions of management in light of management’s experience and
perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant
and reasonable in the circumstances, including assumptions in
respect of current and future market conditions, the current and
future regulatory environment and future approvals and
permits. Actual results, performance or achievement could
differ materially from that expressed in, or implied by, any
forward-looking statements in this press release, and, accordingly,
you should not place undue reliance on any such forward-looking
statements and they are not guarantees of future results.
Forward-looking statements involve significant risks, assumptions,
uncertainties and other factors that may cause actual future
results or anticipated events to differ materially from those
expressed or implied in any forward-looking statements. Please see
the heading “Risk Factors” in Tilray’s Quarterly Report on Form
10-Q, which was filed with the Securities and Exchange Commission
and Canadian securities regulators on November 14, 2018, for a
discussion of the material risk factors that could cause actual
results to differ materially from the forward-looking information.
Tilray does not undertake to update any forward-looking statements
that are included herein, except in accordance with applicable
securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190115005217/en/
Tilray:Media: Chrissy
Roebuck, 1-833-206-8161, news@tilray.comInvestors: Katie
Turner, +1-646-277-1228, Katie.turner@icrinc.com
Authentic Brands Group:Corporate
Communications: Haley Steinberg, 646.612.7439,
hsteinberg@abg-nyc.comHealth and Wellness, Marketing & PR: Alli
Good, 646.779.5336, agood@abg-nyc.com
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