Canada-based pharmaceutical and cannabis company Tilray, Inc., has purchased the bulk of MedMen Enterprises Inc.’s outstanding senior secured notes for a reported value of $165.8 million. The notes were previously held by funds affiliated with Gotham Green Partners, LLC (GGP), according to Green Market Report.
The acquisition was made in conjunction with amendments to the previously restrictive covenants and an extension of the debt maturity, which will provide MedMen with flexibility as it pertains to growing the company through additional “strategic opportunities.” Per Tilray’s CEO, Irwin D. Simon, the Tilray team is “focused on building the world’s leading cannabis-focused consumer branded company with a goal of $4 billion of revenue by the end of [their] fiscal 2024” – a lofty goal that feels achievable with this promising transaction. With the promise of being able to convert the Notes, Tilray has set itself up to own a significant portion of MedMen equity.
“The investment we are announcing in MedMen securities today, one of the most recognizable 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,” said Simon, alluding to the ever-evolving landscape of the U.S.’s legalization process, throughout which MedMen has seen plenty of ups and downs. Lately, though, the company has been “executing a disciplined turnaround plan,” according to their CEO and Chairman, Tom Lynch. “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,” said Lynch. This is exciting news for both companies, for the proliferation of legalization, and for the numerous patients and consumers who rely on the recreational and medical marijuana from both brands.