TYilray paid $225 million CDN to acquire Medmen debt -the fact that they wrote some of that off with the last rear end financials is hardly comforting - but if Medmen folds (which seems likely), Tilray investors will have got absolutely nothing for the $ 225 million.
Tilray was already in deep trouble when Tilray bought the debt in August of 2021 - it seems everyone BUT Simple Simon knew that, Medmen's issues were undisputable.
How much incompetence and blinder mis-management to try and prove to yourself how clever you are by finding a 'cool' way of entering the US upon legalization does it take to make such a bad business decision?
Medmen - after reporting delay, after reportingd elay due to 5 CEOs and numerous CFOs, lawsuits, kickbacks to Anson Funds, accusations of misuse of funds, mis-statted financials was to finally release it's financials today.
They haven't done so yet - I realize that the day isn't over, but if it was good they would have been out by now, right.
Expect about a little above ZERO cash on hand after continued cash burn, continued reduction in sales and Net Loss. Other than injecting even more cash into Medmen, Tilray cannot outright acquire a US cannabis company - Medmen ay have no other chocie but to declare baknrupcty - and just like Tilray lost Zenabis to SNDL - Tilray will lose Medmen - and their 'vaunted' 4 NYC licences to a US MSO.