Tilray announced it has struck a major marketing deal with brand development, marketing and entertainment company Authentic Brands Group.
In a press release Tuesday, Tilray said it has signed with ABG “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.”
According to ABG’s corporate website, the company owns 50 brands, has 875 partners, 248 million social media followers and does $8.9 billion in annual retail sales.
The agreement means ABG will develop, market and distribute consumer cannabis products worldwide with an immediate focus on Canadian and U.S. markets, with Tilray as the preferred supplier of active cannabinoid ingredients.
The price tag to Tilray for the agreement includes a cash payment of nearly $132.5 million Cdn and up to about $331 million in cash and stock “subject to achievement of certain commercial and/or regulatory milestones” and Tilray can receive up to 49 per cent from cannabis products bearing ABC brands and with guaranteed minimum payments of up to $13.25 million annually for 10 years.