Tilray Inc (NASDAQ:TLRY) subsidiary High Park Farms Ltd is investing C$7.5 million into cannabis producer ROSE LifeScience Inc as it looks to increase its presence in the Québec market.
Shares of Tilray climbed more than 3% to US$77.93 in Friday morning trading.
As per the terms of the deal, Tilray will subscribe for 41 Class A shares, amounting to 12% in the capital of ROSE LifeScience.
The companies also inked an exclusive sale, supply, distribution and marketing agreement with the Quebec-based cannabis producer to deliver High Park adult-use cannabis products in the province, including its Dubon brand, which is only available through the Société québécoise du cannabis.
“This investment in a Québec-owned and operated organization will enable High Park to better serve this partnership and the adult-use market in Québec,” said High Park’s Chief Marketing Officer Adine-Fabiani Carter in the company’s press release.
The construction of ROSE’s 54,000 square foot cannabis cultivation facility in Huntingdon, Québec is underway and the company has applied for a Health Canada cultivation, processing and sales license.
Upon becoming fully-licensed, ROSE will be the exclusive supplier of High Park products to the Québec market.
Tilray and ROSE LifeScience may also team up on co-branded products or other brands tailored to the Quebec market.