Tuesday, September 16, 2025

Tilray Sinks 22% In Pre-Market Trading After Lending Shares To Shorts For Note Offering

Tilray Brands (NASDAQ: TLRY) is currently down nearly 23% in pre-market trading follow the after-hours announcement that it would be raising funds via unsecured convertible notes.

The offering, which will see gross proceeds of $150 million, plus a $22.5 million over-allotment option, consists of 5.20% convertible senior notes, which are due June 15, 2027. The notes are payable semi-annually in arrears, with the conversion price equivalent to $2.66 per share, a 12.5% premium to the firms most recent closing price.

Net proceeds from the offering are slated to amount to $144.8 million, or as much as $166.6 million if the over-allotment option is fully exercised.

A portion of the proceeds are slated to be used to repurchase some of the firms 5.00% convertible senior notes dude 2023, and some of its 5.25% convertible senior notes due 2024. Tilray has indicated it will repurchase $12.5 in principal amount of 2023 notes for $12.6 million in cash, and $122.5 million in principal amount of 2024 notes for $125.7 million in cash.

As part of the offering however, Tilray has entered into a share lending agreement with Jefferies LLC, which will see the company lend 38.5 million shares to the investment bank.

READ: Hexo To Be Acquired By Tilray For US$56.0 Million

The shares are to be newly issued, which Tilray expects to be used to enter a short position to establish a hedge in relation to the notes offering. The shares are to be held in treasury once returned under the lending agreement.

Tilray Brands last traded at $2.36 on the Nasdaq.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

More Than 80% of Canada’s Cannabis CEOs at the Time of Adult-Use Legalization Have Left

Three years into adult-use legalization – fewer than 1 in 5 CEOs who were there...

Sunday, October 24, 2021, 09:00:00 AM

Aphria, Tilray Granted Regulatory Clearance Under Competition Act For Combination

Aphria Inc (TSX: APHA) (NASDAQ: APHA) this evening reported that the transaction with that of...

Tuesday, February 23, 2021, 04:27:22 PM

The Public Partners of Westleaf

Westleaf Inc (TSXV: WL) is a $300 million company in which we can almost guarantee...

Monday, January 28, 2019, 02:00:06 PM

Tilray To Conduct $250 Million ATM Financing To Fund Acquisitions

Tilray Brands (TSX: TLRY) is aiming to take as much money out of the market...

Friday, May 17, 2024, 08:33:22 AM

Tilray: Canaccord Reiterates US$12 Price Target After Distillery Purchase

On December 8th, Tilray (TSX: TLRY) announced the acquisition of Breckenridge Distillery, a whiskey and...

Friday, December 10, 2021, 03:39:00 PM