Tilray Brands Inc TLRY shares are down in Thursday’s after-hours session following the company’s announcement of an offering.
What Happened: Tilray has started a registered offering of $150 million worth of convertible senior notes which will be matured in 2027. The underwriters will also have a 30-day period to buy up to an additional $22.5 million.
The issuance of convertible notes to pay off debt will result in converting the company’s existing debt to equity in the future. This will mean an eventual dilution for the current shareholders.
The proceeds from the offering will be used by Tilray to fund the repurchase of a part of its outstanding 5% convertible senior notes which are matured in 2023 and 5.25% convertible senior notes which are matured in 2024.
Tilray is a global company that deals in cannabis-lifestyle and consumer packaged goods.
As of the third quarter which ended in February 2023, Tilray had $408.28 million in cash and equivalents.
TLRY Price Action: Tilray has a 52-week high of $5.12. It’s currently experiencing a new low in Thursday’s after-hours trading.
Tilray shares were down 18.20% at $1.93 at the time of publication, according to Benzinga Pro.
Photo: 7raysmarketing from Pixabay.
