Tilray Acquires MedMen For $165.8 Mln Anticipating Pot Legalization

(RTTNews) - Canadian cannabis company Tilray, Inc (TLRY) announced on Tuesday that it has acquired the majority shares of US-based cannabis retail brand MedMen Enterprises Inc. (MMNFF) in a $165.8 million deal anticipating federal legalization of cannabis in the US.

According to the deal, Tilray owns 75% of the senior secured convertible notes previously owned by Gotham Green Partners, LLC and affiliates. The Canadian business also bought 65% of the outstanding warrants, reported CNBC.

Irwin Simon, the chairman and CEO of the company said to CNBC, "What Medmen does for Tilray is that it gives us a great brand. Ultimately, once legalization happens, it gives us the potential to own a great company that we can ultimately take into the rest of the world."

Simon said in a separate interview, "Backed by accelerating trends towards legalization globally, we are focused on building the world's leading cannabis-focused consumer-branded company with a goal of $4 billion of revenue by the end of our fiscal 2024. The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step towards delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows."

MedMen, a known brand to cannabis consumers, has been suffering from losses in recent times and the deal is expected to pump some much-needed funds into the company. According to Tom Lynch, the chairman, and CEO of MedMen, "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. 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."