(Bloomberg) -- Tilray Inc., a Canadian marijuana company that has recently made headway in international markets, has a new option to get into the U.S. through a deal with MedMen Enterprises Inc.
Tilray agreed Tuesday to buy a majority position in senior secured convertible notes of the small California-based firm, which could become a roughly 21% equity stake in MedMen if the U.S. legalizes cannabis at the federal level. In that event, Tilray would be interested in acquiring even more of the company -- potentially all of it, according to Chief Executive Officer Irwin Simon.
“It gives us optionality, ultimately, once legalization does happen,” Simon said in a phone interview just after the deal was announced. Tilray was attracted to the company because its demographic skews toward women and Millennials, and its brand is strong, allowing Tilray to market its products around the world, Simon said. “There's no reason we can't take it to the U.S. and Canada.”
Tilray already has ways to enter the U.S. market once legalization occurs, including a connection with SweetWater Brewing Co., an Atlanta-based maker of cannabis-infused beverages.
MedMen CEO Tom Lynch, also speaking in a phone interview, said a separate $100 million investment led by Serruya Private Equity, also announced Tuesday, will help his company expand in California, Florida, Illinois and Massachusetts and identify other markets to grow in across the U.S.
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