Tilray Inc TLRY is trading higher Wednesday after the company announced that it acquired the majority of the outstanding senior secured convertible notes of MedMen Enterprises Inc MMNFF for about $165.8 million.
The acquisition provides Tilray with a path to obtain a significant equity position in MedMen through conversion of the notes and exercise of associated warrants following U.S. cannabis legalization.
“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," said Irwin Simon, chairman and CEO of Tilray.
Tilray is a Canadian producer that cultivates and sells medical and recreational cannabis.
MedMen is a cannabis retail brand in the U.S. that holds 21 licenses and maintains 25 retail locations.
TLRY Price Action: Tilray has traded as high as $67 and as low as $4.41 over a 52-week period.
At last check Wednesday, the stock was up 8.77% at $14.27.
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