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Privateer backed Tilray to acquire Fresh Hemp Foods/Manitoba Harvest for $419M

Tilray, Inc. (NASDAQ: TLRY), a portfolio company of Privateer Holdings, Inc., has entered into a definitive agreement to acquire all of the issued and outstanding securities of FHF Holdings Ltd. (Fresh Hemp Foods dba Manitoba Harvest), from Compass Group Diversified Holdings, LLC (NYSE: CODI), Clif White Road Investments, LLC, and Mike Fata and other shareholders, for up to CDN $419 million.

Tilray will pay $277.5 million at closing, comprised of $150 million in cash and $127.5 million in Tilray shares. Six months after closing, Tilray will pay $92.5 million, comprised of $50 million in cash and $42.5 million in Tilray shares. Tilray will issue an additional $49 million in Tilray shares based on Manitoba Harvest achieving certain performance milestones in 2019.

The transaction is expected to close within the next 30 days.

Founded in 1998, Winnipeg based Manitoba Harvest is a leading hemp food manufacturer and a leader in the natural foods industry. It produces, manufactures, markets and distributes a broad-based portfolio of hemp-based consumer products, which are sold in over 16,000 stores at major retailers across the U.S. and Canada.

In July 2015, Compass Group Diversified Holdings acquired a controlling interest in Fresh Hemp Foods Ltd. from Aviro Ventures, Clif White Road, Fata and other shareholders for $130 million in equity and debt funding. In December 2015, Manitoba Harvest acquired Hemp Oil Canada Inc.

Tilray is backed and majority (93% voting) controlled by Privateer Holdings.

photo credit: Manitoba Harvest

News Release

Tilray® to Acquire Manitoba Harvest, the World’s Largest Hemp Food Company
Acquisition unites cannabis pioneer with leading natural food CPG company to create hemp and CBD infused food and wellness products for North America

NANAIMO, British Columbia–(BUSINESS WIRE)–February 20, 2019–Tilray, Inc. (“Tilray” or “the Company”) (NASDAQ:TLRY), a global leader in cannabis
research, cultivation, production and distribution, today announced it has entered into a definitive agreement (the “Agreement”) pursuant to which Tilray will acquire all
of the issued and outstanding securities of FHF Holdings Ltd. (“Manitoba Harvest”), from Compass Group Diversified Holdings, LLC (“The Compass Group”)
(NYSE:CODI) and other shareholders of Manitoba Harvest (the “Transaction”). Under the terms of the Agreement, Tilray will acquire Manitoba Harvest on a cash and
debt-free basis, for an aggregate purchase price, including cash and class 2 Common Stock in the capital of Tilray (“Tilray Shares”), of up to C$419 million pending the
achievement of certain milestones after the closing of the Transaction.

Founded in 1998, Manitoba Harvest is the world’s largest hemp food manufacturer and a leader in the natural foods industry. It produces, manufactures, markets and
distributes a broad-based portfolio of hemp-based consumer products, which are sold in over 16,000 stores at major retailers across the U.S. and Canada. Products in the
Manitoba Harvest portfolio include: Hemp Hearts™, Hemp Oil™, Hemp Yeah!™ granola, Hemp Yeah!™ protein powder and Hemp Bliss™ milk. Manitoba Harvest
has plans to launch a line of CBD containing Broad Spectrum Hemp Extracts as well as a line-up of Hemp Yeah! wellness bars this summer.

Together, Tilray and Manitoba Harvest plan to grow both companies’ revenue while bringing nutritious hemp foods and supplements to more households across the
U.S. and Canada. The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with
cannabinoids, including cannabidiol (CBD). By leveraging Manitoba Harvest’s established distribution network, Tilray plans to accelerate its expansion into the U.S.
and Canadian markets, where legal, for CBD products. Manitoba Harvest also brings to Tilray an experienced team and manufacturing capabilities, including the
addition of two high quality BRC AA+ certified manufacturing facilities as well as significant sales and distribution capabilities.

“Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry
leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories,” said Brendan Kennedy,
Tilray President and CEO. “We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and
wellness products in the U.S. and Canada.”

“We are excited about being an important part of the growth strategy for Tilray,” said Bill Chiasson, Manitoba Harvest CEO. “By leveraging our combined strengths
and capabilities, we will be able to accelerate our mission of transforming consumer health through the power of hemp.”

Upon completion of the acquisition, Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray, leveraging the Tilray team’s global cannabis industry
expertise and other strategic partners. Manitoba Harvest will continue to operate its seed-to-shelf supply chain model and leverage its retail relationships across North
America. Tilray and Manitoba Harvest will also work together to develop innovative new CBD wellness products and hemp-based consumer food products.

Additional Transaction Details
Of the aggregate maximum C$419 million purchase price, Tilray will pay C$277.5 million at closing, comprised of C$150 million in cash and C$127.5 million in
Tilray Shares. Six months after closing, Tilray will pay C$92.5 million, comprised of C$50 million in cash and C$42.5 million in Tilray Shares. Tilray will issue an
additional C$49 million in Tilray Shares based on Manitoba Harvest achieving certain performance milestones in 2019, such amount to be reduced to the extent that
some or all of the milestones are not achieved. The transaction will be subject to normal post-closing adjustments.

The closing of this Transaction is subject to customary terms and conditions as well as court approval. The Transaction will be completed by plan of arrangement under
the Business Corporations Act of British Columbia. The Transaction is expected to close within the next 30 days.

Blake, Cassels & Graydon LLP acted as Canadian legal counsel to Tilray and Cooley LLP acted as Tilray’s U.S. legal counsel. Cowen provided a fairness opinion to
Tilray’s board of directors in connection with the transaction.

Stikeman Elliott LLP acted as legal counsel to sellers. Jefferies LLC acted as financial advisor to Compass Group Diversified Holdings LLC in connection with the
transaction.

Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and
consumers in twelve countries spanning five continents.

About Manitoba Harvest

Headquartered in Winnipeg, Manitoba, and founded in 1998, Manitoba Harvest is a pioneer and global leader in branded, hemp-based foods. The company is the
world’s largest vertically-integrated hemp food manufacturer and is strategically located near its supply base in Canada. Manitoba Harvest’s 100% all-natural product
lineup includes hemp hearts, hemp protein powder and hemp snacks and are currently carried in about 16,000 retail locations across the U.S. and Canada.

About Compass Diversified Holdings (CODI)

CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long term cash flow generation and value. The
Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its
subsidiaries to invest in the long-term growth of the Company and to make cash distributions to its shareholders.

Privateer controlled Tilray to acquire Manitoba Harvest from Compass Group Diversified Holdings, Clif White Road Investments, Mike Fata and other shareholders…