Canadian cannabis company Tilray Inc. said Tuesday that it has acquired a majority stake in Los Angeles-based MedMen Enterprises Inc. The deal will help Tilray gain a stronger presence in the emerging U.S. market.

“What MedMen does for Tilray is that it gives us a great brand. Ultimately, once legalization happens, it gives us the potential to own a great company that we can ultimately take into the rest of the world,” Irwin Simon, Tilray’s chairman and CEO, said Tuesday on CNBC’s “Closing Bell.”

MedMen, which was founded in 2010, operates in California, Nevada, Illinois, Arizona, Massachusetts, and Florida. In 2018, MedMen went public on the Canadian Stock Exchange.

Tilray and other investors acquired 75% of MedMen’s outstanding secured convertible notes and 65% of its outstanding warrants, according to a press release about the transaction. The aggregate principal amount came out to about $165.8 million in notes and warrants.

“Backed by accelerating trends towards 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," 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 towards delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows.”

Wall Street has remained bullish about cannabis despite slow implementation in the U.S.

"From a top-line growth perspective, if you benchmark where the U.S. operators are trading relative to... beverages or tobacco, these companies are going to grow their top-lines at mid-teens to high 20s compounded annual growth rates, which is multiples faster than anything I cover in beverages and tobacco," Cowen Managing Director Vivien Azer told Yahoo Finance in April.