Canadian Cannabis Company Tilray Company It said on Tuesday that it had acquired a majority stake in the Los Angeles headquarters MedMen Enterprises Inc. This transaction will help Tilray gain a stronger influence in the emerging American market.
“What MedMen has done for Tilray is that it gives us a great brand. Ultimately, once legalization happens, we may have a great company, and we can finally bring it to the rest of the world,” Tilray Chairman and CEO Owen Simon said on CNBC’s “closing clock” on Tuesday.
MedMen was founded in 2010 and has operations in California, Nevada, Illinois, Arizona, Massachusetts, and Florida. In 2018, MedMen was listed on the Canadian Stock Exchange.
Tilray and other investors acquired 75% of MedMen’s outstanding secured convertible notes and 65% of outstanding warrants, According to the press release About the transaction. The total principal of the notes and warrants is approximately US$165.8 million.
“Supported by the accelerated global legalization trend, we are focused on building the world’s leading cannabis-focused consumer brand company, with the goal of achieving $4 billion in revenue by the end of fiscal year 2024,” Simon said in a press release.
“We today announced our investment in MedMen Securities, one of the most recognized brands in the US$80 billion U.S. cannabis market. It is a critical step in achieving our goal as we strive to make Tilray lead when legalization allows American market.”
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“From the perspective of revenue growth, if you benchmark U.S. operators’ transactions with respect to… beverages or tobacco, the revenues of these companies will grow to a high compound annual growth rate in their twenties in their twenties. This is faster than any beverage and tobacco products I cover,” Cowen managing director Vivien Azer told Yahoo Finance in April.
