Tilray Inc. has acquired a majority of the outstanding senior secured convertible notes of US cannabis retail brand MedMen.
Global cannabis lifestyle and consumer packaged goods company, Tilray, which has production facilities in Germany and Portugal, has acquired approximately $165.8m notes and warrants of MedMen, which holds 21 licenses and 25 retail locations including the Bay Area, Los Angeles, Boston, Chicago, and Las Vegas, and which has a significant position in California.
Entering the US market
Tilray says the move will facilitate a path to the US cannabis market pending federal legalisation, prior to which MedMen will actively explore opportunities to expand its footprint across international markets.
Tilray chairman and CEO, Irwin Simon, said: “Backed by accelerating trends towards legalisation globally, we are focused on building the world’s leading cannabis-focused consumer-branded company with a goal of $4bn of revenue by the end of our fiscal 2024.
“The investment we are announcing in MedMen securities today, one of the most recognised brands in the $80bn US cannabis market, is a critical step towards delivering on our objective as we work to enable Tilray to lead the US market when legalisation allows.
“Our ability to maximise value from this game-changing transaction rests on the support of our shareholders at the upcoming Special Meeting to vote on our Authorized Shares Proposal, which will increase the number of authorised shares Tilray has available to not only complete this transaction, but also to execute on other strategic acquisitions.
“I cannot stress enough the importance of making our shareholders’ voices count to enable us to maximise our potential to create substantial value for our shareholders in the near-term and in the future.”
“Our management team has spent the past 18 months executing a disciplined turnaround plan. We are grateful to our stakeholders for their patience and support as we worked to fix the business and rebuild trust and credibility,” added Tom Lynch, chairman and CEO at MedMen.
“We believe that patience has paid off, as these efforts have succeeded in attracting partners who share our vision for building the world’s most powerful cannabis retail brand. In addition, the proceeds from the private placement and amendments to the Notes, gives MedMen the cash and flexibility to match our revenue trajectory to our operational expertise and internationally renowned brand. MedMen 2.0 is here, and we are thrilled to embark on the next stage of our journey.”
The notes and warrants were originally issued by MedMen and held by Gotham Green Partners, and are convertible into approximately 21% equity of MedMen upon closing of the transaction.
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