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Acquisitions
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Acquisitions

16. Acquisitions

Acquisition of Alef

In October 2018, the Company acquired Alef, a privately held company, which is an existing import and distribution partner.  With this acquisition, the Company expanded its reach to the South American markets, and is now Tilray Latin America, a subsidiary of Tilray, Inc.  The total consideration paid was $2,893, comprising of $2,855 of Company’s Class 2 common stock, of which $736 is held in escrow and cash consideration of $38.

The transaction was accounted for as an asset acquisition, as it did not constitute a business as defined in ASC 805 Business Combinations.  The escrow consideration has not been released as of the issuance date of these financial statements because the 12 months have not elapsed.  The Company notes that the cost of a group of assets acquired in an asset acquisition shall be allocated to the individual assets acquired or liabilities assumed based on their relative fair values.  Part of the asset acquisition included Alef’s cannabis license, $2,984, which has been recognized as intangible asset.

 

The consideration includes a contingent component based upon the achievement of certain milestones.  The contingent consideration will be recognized when the milestones will be reached.