Tilray Inc. is buying marijuana retailer 420 Investments Ltd. of Calgary for $110 million, the British Columbia-based cannabis researcher and distributor said.

The all-stock deal through a Tilray subsidiary, High Park Holdings Ltd., is expected to close early next year, according to a statement by Tilray. The first $70 million in stock is payable on the close of the deal with the remaining $40 million subject to performance milestones.

“Four20 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,” Tilray chief corporate development officer Andrew Pucher said in the statement. The company is “preparing for the next wave of legalized product launches taking place by year’s end.”

The deal comes amid expected consolidation in the cannabis sector nearly a year after Canada legalized the drug. Tilray said it would use Four20’s retail expertise to help expand in other provinces. The company may see its full-year revenue nearly quadruple to $180.5 million this year, according to data collected by Bloomberg.

Tilray calls itself a pioneer in cannabis research that serves “tens of thousands of patients and consumers in 13 countries spanning five continents.” Four20 owns and operates six outlets in Alberta and has secured 16 more locations in the province, including Canmore, Calgary and Edmonton.

The deal is subject to regulatory and shareholder approval as well as court approval of the arrangement, Tilray said.