Tilray Brands, Inc. TLRY

Tipranks say Tilray losing the rest of its medmen investment

[Keeler]

Tilray’s Investment in Jeopardy: MedMen’s Troubles Threaten $32K Ce 

TipRanks NewsdeskApr 11, 2024, 12:00 AM

 

 

Tilray (TLRY) has disclosed a new risk, in the Debt & Financing category.

Tilray faces considerable financial risk regarding its investment in MedMen’s secured convertible notes, particularly after MedMen’s recent executive changes and the appointment of a chief restructuring officer. The potential restructuring or liquidation of MedMen might substantially affect the recoverability of the $32 million carrying value recorded by Tilray. With MedMen’s operations and assets at risk, the security interests that underpin Tilray’s investment could prove difficult to enforce, especially outside of federal bankruptcy law jurisdictions. Such uncertainties raise the specter of significant impairments to Tilray’s financial statements, potentially impacting the overall investment portfolio’s value detrimentally.

The average TLRY stock price target is $2.30, implying 13.86% upside potential.