was one of the largest privately owned cannabis companies in Canada - known for their pre-roll process.
Of course there's a story - Redecan was owned by the Montour family, a first nations group who originally began tobacco/cigarette brand. Montour Sr. and anothe relative were convicted and sentenced to 8 years for smuggling tobacco and cannabis back around 1970(?).
One of the current Redecan Directors, Jason Hill, was known to associate with the Hell's Angels - and the governemnt investigated Redecan shortly after the Hexo acquisition.
Redecan's annual sales were $68 million - which poster sucha s Touran, quinlash and the PoW Group - famoulsy promoted on this board for the guy operating a site out of his basement offering crypto, subscriptions and paid 'investment counsleling' - but mainly he read Hexo and now Tilray press releases out loud for you.
ANYWAY - they all took the $68 million as quarterly revenue - and they all proclaimed that Redecan's sales were actually $68 million x 4 quarters = about $280 million.
(insert hahahahaha here)
If you can believe it - visionary Hexo CEO paid $900 million to buy Redecan. $1 BILLION for a company that sells prerolls and had an annual revenue of $70 million.
SSL paid by shares and cash - borrowing $400 million. This is the deal that destroyed Hexo - and it's where Tilray comes in, buying most of the debt (like they did with Medmen). Hexo defaulted - and would have declared bankruptcy - but Tilray acquired the company.
Hexo's revenue had dropped to $12 million a quarter, inculding Redecan, by the time the acquisition was closed - and Hexo/Redecan controbuted a combined sales revenue of elss than $10 million a quarter to Tilray.
That's what Hexo got for $900 million - and that's what Tilray got for $250 million.
A company that has annual sales of less than $40 million.
BUT luckliy - Simple Simon, the $30 million a year man - is a visionary.
Comment by
Oldweedon Mar 28, 2024 7:27am 
441 Views
Post# 35957388
RE:Yeah - I wouldn’t read too much into
Keeler wrote: the cweb and wanna products. Cweb and Tilray signed an agreement a year plus ago for Tilray to market and distribute cweb hemp CBD products in Canada.
cgc bought wanna two years ago - I think Tilray already had an agreement prior to that buy.
There are some odd sounding arrangements in the sector - Rose Life Science markets and distributes both Hexo and Tilray products in Quebec. (Rose is owned by Village Farms)
Not sure why Tilray would sell others products - in direct competition with their own - Manitoba Harvest hemp CBD for example.
But it's hard to question decisions made by a visionary leader like Simple Simon.
Post by
Oldweedon Mar 27, 2024 11:47pm 453 Views
Post# 35957170
Some potential Good News
I've noticed there are a few products available on the Tilray site from Charlotte's Web, one of which is the CBD cream. I had complained a while back about packaging dates, the CW cream has a very recent package date. Perhaps there is a partnership in the works and Tilray is testing the Canadian market for interest? On another note there are Wanna brands also available on the Tilray site, I found that unusuall since I think Wanna is basically CGCs big playbinnthr US? Never know where the next surprise will come from!
Your probably right, like you mentioned I also found it odd to see Wanna, I didn't know the deals were that old, but if they are selling CW cream I'm guessing that is why there own cream was getting old. Is the deal with VFF similar to the JV with Double Diamond? Anyone know if Redican was growing their own or working with someone before the merger?