Tilray, the British Columbia-based cannabis heavyweight, signed a revenue-sharing agreement with Authentic Brands Group (ABG) to market and distribute consumer cannabis products within the New York-based firm’s brand portfolio.
Under the terms of the agreement, Tilray will pay $100 million to ABG and up to $250 million in cash and stock upon achieving unspecified milestones.
In addition, Tilray will have the right to receive up to 49% of the net revenue from cannabis products bearing ABG brands with a guaranteed minimum of $10 million annually for 10 years.
ABG, whose portfolio includes brands such as Aeropostale, Nautica, Spyder and Vince Camuto, will market and distribute consumer cannabis products worldwide, with CBD products in Canada and the U.S. the immediate priority.
Tilray will be the preferred supplier of active cannabinoid ingredients in ABG-owned products.
ABG’s portfolio generates approximately $9 billion in annual retail sales and has more than 4,500 locations.
“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,” Daniel Dienst, ABG executive vice chairman, said in a news release.