Tilray Inc. has acquired a majority of the remaining senior secured convertible notes, amounting to US$165.8 million in MedMen, according to the company’s press release.

  • The acquisition allows Tilray to hold a significant equity position in MedMen subject to the Notes conversion and exercise of related warrants on regulatory approvals.
  • The convertible notes are currently held by funds affiliated to Gotham Green Partners, and other funds.
  • Following the sale, MedMen and GGP extended the debt maturity to 2028 to allow MedMen to pursue its growth priorities and utilize additional strategic opportunities.
  • Restrictive covenants on the bonds were also amended, including the elimination of any cash interest commitments, in replacement with pay-in-kind interest.

The acquisition represents about 75% of all outstanding notes and 65% of warrants. Tilray’s rights in the newly formed limited partnership is now 68% of the Notes and the associated warrants.

TLRY: NASDAQ is up +4.56%.