Tilray has lots of cash on hand and I think they may try and buy 100% of MedMen. But I wonder if they want to own two public companies and could elect to swap stocks with MedMen like they did with HEXO.
Like MedMen, Tilray stock is cheap at $1.89 when is used to be $25 3 years ago. MedMen has certifications in place for all US states so any change in legalization and they will likely be the first to get into those markets and have an easy time finding lenders knowing they will be a good risk. And if mushrooms were legalized they would also be one of the first to get certification, but won’t hold my breath.
Changing names on those certifications may cause Tilray to have to re-file under the new name and get re-certified but not sure. It would be easier to just leave MedMen as is for a while even if they did acquire control of MedMen. I am sure many pump and dumps will emerge soon as mushroom stocks and take away investors from MedMen. But MedMen is so cheap right now it may pay for investors to take positions in many tickers.
Also any new mushroom pump and dump will start the shares much higher like all pump and dumps do that will market heavily at $1 or more in the beginning before they add all the debt thru affiliates or subsidiaries. So that takes time and in that time well either see the MedMen deal happen or not and also monitor the shares price.
Only a few will jump in on mushroom scams at $1 or more as they start out with 100,000,000 in the float and dump 500,000,000 or more short that will be covered as soon as they add debt and increase the authorized to 20 billion or more.
That would end up dropping the shares even below MedMen at $.03. We have to also watch the filings of MedMen to make sure they are also not setting up to debt dilute but at $.03 they really don’t have much room to make much like others tickers that dump shares at $.50 or more before they drop to $.03 or less.
If they do a stock swap you would get 1 share of Tilray for every 63 you own in MedMen at $.03. Even though Tilray is down ($1.89 per share) If MedMed could hang on with the new funding and debt reduction and rise to even $.09 would mean Tilray would have to rise from $1.89 to $5.67 and I believe MedMed has a better chance of that then TIlray.
I just don’t know what Tilray or MedMen is up to but ill poke around some more and see what I can find internally. I think Tilray is more interested in getting their stock up then to use the MedMen deal to get MedMen shares up. A guess but maybe not.
But you never know. Tilray going from $2 to $20 is a 10 times gain. MedMen going from $.03 back to even $1 is 33 times gain and at $5 is 166 times gain. I think it will be more likely MedMen will rise with higher gains then to see Tilray go back to $20.
Once you get past $.25 per share with any ticker, You lose 75% of low level retail investors who see it as to expensive and gravitate to the $.00 stocks hoping for a major score. But if the shares rally, more of the investors who paid $5 or more will jump in. Tilray may also see the MedMen stock as a cash cow.
If they do move into the markets with more and more locations and expansion and debt reduction and move MedMen shares back to $1 or more, Tilray would then have enough shares in MedMen to sell and totally eliminate all debt. So they may keep MedMen public but still not 100% sure. Maybe keep MedMen as a subsidiary company.
If Tilray keeps MedMen public as it is now and does expand into more states and reduces debt, they may find that they can make more money with the MedMen stock and company sales then their own and just leave MedMen as it is now.
Tilray says they do $210 million annually. To make $210 million with MedMen with only one store in each state, each store would have to do $4,200,000. If they opened 3 stores per state, each store would only have to do $1.4 million that seems to be easy based on the market. Leaving MedMen public (No stock swap) and planning the expansion could send MedMen back to $1 or more and Tilray would then maybe seriously think about merging Tilray into MedMen but well have to wait and see.
AI
