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On Tuesday Tilray Inc. announced the signing of a global revenue sharing agreement with Authentic Brand Groups for the development and marketing of cannabis that could be worth hundreds of millions of dollars.

The deal will see Tilray become the preferred cannabinoid supplier for Authentic Brands, who will then distribute Tilray’s consumer cannabis products within its lifestyle and entertainment portfolio. Authentic Brands currently operates in more than 100,000 points of sale globally, including 4,500 branded stores, and expands Tilray’s footprint drastically. Among the portfolio are retailers such as Kohl’s, Macy’s, and Walmart.

With the deal, Tilray will have to pay Authentic Brands a $100 million initial payment as well as offer $250 million in cash and stock for milestone-contingent additions.

From then on, Tilray will be entitled to 49 per-cent of Authentic Brands’ net revenue from cannabis products, which, depending on certain milestones, the firm says will be a minimum of $10 million annually for the next decade.

Through press release, Tilray President and CEO Brendan Kennedy commented on the move, "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.”

Source: https://www.benzinga.com/markets/cannabis/19/01/12984674/tilray-signs-revenue-sharing-agreement-with-authentic-brands-group-f

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