NANAIMO, B.C. — Licensed producer Tilray Inc. has teamed up with the U.S. company behind brands such as Juicy Couture, Aeropostale and Nine West to develop and sell co-branded consumer cannabis products.
The Nanaimo, B.C.-based company today announced the long-term revenue sharing agreement with Authentic Brands Group, to whom Tilray will initially pay US$100 million in cash and stock, or more depending on certain milestones.
Tilray says it will receive up to 49 per cent of the net revenue from these products bearing names from ABG’s portfolio of more than 50 brands, with a guaranteed minimum payment of up to US$10 million annually for 10 years.
Under the deal, Tilray would be the preferred supplier of active cannabinoid ingredients, such as CBD and THC, for ABG’s cannabis products.
Its chief executive, Brendan Kennedy, says potential products include Nine West CBD foot cream or CBD-infused muscle wraps under the tennis brand Prince, but the brands to be used in the initial rollout are not yet set.
He expects products to be on the market within 12 months on both sides of the borders, as allowed under U.S. and Canadian regulations.
The Canadian Press