- Tilray Brands, Inc’s stock (NASDAQ:TLRY) has taken a plunge on Friday, following the company’s announcement to raise $150 million through a convertible senior notes offering.
- The trading session volume has spiked to 36 million against the 100-day average volume of 11 million.
- The company has stated that part of the money raised will go toward repurchasing outstanding 5% convertible senior notes due in 2023 and 5.25% convertible senior notes due in 2024.
- By issuing new convertible senior notes to pay off existing debt, the company’s current debt is likely to be refinanced with new notes that will eventually convert to equity, leading to dilution for existing shareholders.
- Tilray is a company focused on cannabis-lifestyle and consumer packaged goods.
- Senate Majority Leader Chuck Schumer’s plans to reintroduce the Secure and Fair Enforcement (SAFE) Banking Act is expected to provide cannabis businesses with access to essential banking infrastructure, which could be a significant boost to the cannabis industry.
- Schumer is also seeking to include criminal justice reform measures, such as expungements, in a bipartisan marijuana banking bill.
- Schumer aims to attach criminal justice reform provisions to the financial services measure and sought a committee vote on the marijuana banking bill.
- Price Action: TLRY shares traded lower by 21.4% at $1.86 on the last check Friday.
- Photo via Wikimedia Commons
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