Shares of Tilray (NASDAQ:TLRY) climbed on Wednesday after the Canadian cannabis company announced a deal with American marijuana retailer MedMen Enterprises (OTC:MMNFF). By the close of trading, Tilray’s stock price was up 1.1% after rising as much as 7.2% earlier in the day.
Tilray agreed to purchase MedMen’s convertible notes from private equity firm Gotham Green Partners. The deal could position Tilray to quickly enter the U.S. market should federal legalization progress.
“Backed by accelerating trends toward legalization globally, we are focused on building the world’s leading cannabis-focused, consumer-branded company with a goal of $4 billion of revenue by the end of our fiscal 2024,” Tilray CEO Irwin Simon said in a press release. “The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step toward delivering on our objective.”