Popular marijuana stock Tilray (NASDAQ:TLRY) is soon to be one asset larger. The company announced in a press release Thursday that it has signed a definitive agreement to buy FOUR20, an operator of upscale dispensaries in Canada. It will effect the purchase through a subsidiary of its Canadian unit High Park. The seller is FOUR20's owner, privately held 420 Investments.

The price is 110 million Canadian dollars ($83 million) in Tilray stock. 420 Investments will receive CA$70 million ($53 million) of this at closing, and CA$40 million ($30 million) if FOUR20 achieves specific performance milestones. Tilray did not provide any detail about the milestones.

Marijuana leaves and bottles of derivative oils.

Image source: Getty Images.

FOUR20 launched operations in 2014. It runs six licensed dispensaries and, according to Tilray, has secured another 16 locations for stores. All six existing locations are in the western province of Alberta; four of these are located in Calgary, the location of 420 Investments' headquarters.

Tilray described its asset-to-be as one that "offers a premium retail experience for the mainstream cannabis consumer and builds on our broader retail strategy, which includes several minority investments in other leading cannabis retailers."

It added that Tilray plans to "elevate the retail experience for consumers by offering the best quality-tested products while preparing for the next wave of legalized product launches taking place by year's end."

The company is referring to the so-called second wave of cannabis legalization in Canada, which will free products such as edibles and drinks from the clutches of illegality. This is scheduled to occur on Oct. 17 -- exactly one year after the country first legalized recreational cannabis use.

The FOUR20 deal is the latest in a lengthening series of acquisitions by the larger publicly traded marijuana companies. Compared to other purchases in the industry, some of which have reached billions of dollars, this one is fairly small in scale. Companies in the business are scrambling to build scale, and this frequently involves the outright purchase of assets.

Tilray's purchase of FOUR20 is subject to approval from the relevant regulators, as well as that of FOUR20 stockholders. Tilray expects the deal to close by the end of Q1 2020. Following close, Tilray said, FOUR20 is to operate as a fully owned subsidiary of its new owner.

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