Montauk Brewing Deal Expected to be Accretive, Deliver Strong Revenue and Adjusted EBITDA, and Accelerate the Expansion of Tilray’s Powerful U.S. Brand PortfolioVeteran Industry Executive Ty H. Gilmore Appointed President of Tilray Brands’ U.S. Beer Business

NEW YORK, Nov. 7, 2022 – PRESS RELEASE – Tilray Brands Inc. announced the acquisition of Montauk Brewing Company, the No. 1 craft brewer in Metro New York. Montauk Brewing is well-known for its product portfolio, premium price point, and distribution across more than 6,400 points of distribution, including top national retailers such as Target, Whole Foods, Trader Joe’s, Stop & Shop, King Kullen, Walmart, 7-Eleven, Costco, BJ’s and Speedway. The acquisition is expected to be accretive to the company’s adjusted EBITDA.

Montauk Brewing joins Tilray’s growing U.S. beverage-alcohol segment, which already includes SweetWater Brewing Company, the 10th largest craft brewer in the nation with distribution across more than 40 states, the Alpine and Green Flash iconic Southern California brands, and its leading lifestyle bourbon and spirits brand, Breckenridge Distillery.

To fully optimize the value and strength of its U.S. craft beer portfolio, Tilray also announced that it has appointed veteran beer and beverage industry executive Ty H. Gilmore as president of Tilray’s U.S. beer business, a newly created position.

Irwin D. Simon, chairman and CEO, said, “Tilray Brands continues to strengthen our U.S. footprint and operations through investments in and growing our portfolio of leading lifestyle CPG brands that resonate powerfully with consumers. Montauk Brewing is an iconic brand with leading market share and distribution in the Northeast. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure and Montauk Brewing’s Northeast influence to significantly expand our distribution network and drive profitable growth in our beverage-alcohol segment. This distribution network is part of Tilray’s strategy to leverage our growing portfolio of U.S. CPG brands and ultimately to launch THC-based product adjacencies upon federal legalization in the U.S.”

Simon added, “We are excited to welcome Montauk Brewing’s founders Vaughan Cutillo and Eric Moss, as well as Terry Hopper, Montauk Brewing’s general manager, to the Tilray Brands family, and I look forward to working closely with Ty Gilmore to maximize the performance of our enormously powerful craft and lifestyle beverage brand portfolio.”

Strategic and Financial Benefits: Montauk Brewing joins SweetWater, Green Flash, and Alpine brands as the cornerstones of Tilray’s coast-to-coast craft beer segment and further strengthens the company’s net revenue. In addition to acquiring a strong brand and accretive business, the acquisition is expected to deliver additional scale in Tilray’s craft beer segment and positions Tilray Brands with a stronger footprint in the Northeast rounding out our footprint across the U.S. market.

Expands Tilray’s Commercial Opportunities in the U.S.: Upon federal legalization in the U.S., Tilray plans to take full advantage of its strategic infrastructure, operations and consumer loyal brands across beer, spirits and snack-food categories to parlay into THC-based products and further expand its commercial opportunities.

Opportunity for Accelerated Growth of Montauk Brewing Company: Montauk Brewing has enormous potential to expand its customer base and grow throughout the U.S. as a true national brand. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure to accelerate Montauk Brewing’s distribution network and revenue growth.

Appointment of Ty H. Gilmore as President of U.S. Beer Business: Gilmore joins Tilray from Glazer’s Beer and Beverage, where he had served since 2020 as executive vice president, overseeing sales, marketing and operations across 11 distributors in the South. Prior to that, he spent the majority of his nearly three-decade career at Diageo, in positions of increasing seniority including seven years leading national accounts.

As Tilray Brands continues to accelerate its strategic growth opportunities, the company asks all stockholders to participate in its annual meeting of stockholders to be held on Nov. 22, 2022.

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