Tilray Brands Inc (TLRY)

[Bonno]

Tilray Sinks 22% In Pre-Market Trading After Lending Shares To Shorts For Note Offering
Bonno
May 26, 2023
Doomed!

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.