| 06:15 AM EDT, 08/18/2021 (MT Newswires) -- Tilray (TLRY) said on Tuesday that it has acquired the majority of the outstanding senior secured convertible notes of MedMen Enterprises that were originally held by certain funds affiliated with Gotham Green Partners, LLC and other funds. The company said that the acquisition provides it with a path, subject to necessary regulatory approvals, to obtain "a significant equity position in MedMen" through conversion of the notes and exercise of associated warrants following US cannabis legalization or Tilray's waiver of such condition. Tilray said that MedMen separately announced on Tuesday "a significant equity investment" from a private placement of MedMen shares and warrants to a group of investors. "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," Irwin Simon, Tilray's chairman and CEO, said. Under the terms of the transaction, a newly formed limited partnership established by Tilray and other strategic investors acquired approximately $165.8 million of the notes and the warrants, all of which were originally issued by MedMen and held by Gotham Green Partners, LLC, representing 75% of the outstanding notes and 65% of the outstanding warrants, Tilray said. Tilray's interest in the limited partnership represents rights to 68% of the notes and related warrants held by the limited partnership, which are convertible into, and exercisable for, approximately 21% of the outstanding class B subordinate voting shares of MedMen upon closing of the transaction. Tilray said that its ability to convert the notes and exercise the warrants is dependent upon US federal legalization of cannabis or Tilray's waiver of such requirement as well as any additional regulatory approvals. As consideration for Tilray's interest in the notes and warrants, and subject to Tilray receiving the stockholder approval necessary to increase the number of shares of its authorized capital stock, Tilray said that it will issue approximately 9.0 million shares of its common stock to Gotham Green Partners, LLC. It said that if it has not received the stockholder approval by Dec 1, 2021, Gotham Green Partners, LLC may elect to receive cash rather than Tilray shares. Shares of Tilray were up by approximately 6.3% in recent, pre-market trade on Wednesday. Price: 14.00, Change: +0.88, Percent Change: +6.71 |