Tilray stock down 6% after company plans to raise $400 million in convertible bonds
Shares of Tilray Inc. TLRY, +13.51% fell more than 6% in the extended session Wednesday after the company said it planned to offer $400 million worth of convertible senior notes due in 2023 in a private placement to "qualified institutional buyers." The Canadian full-service cannabis company said it planned to grant first buyers of the notes an option to acquire an additional $60 million. Tilray would use proceeds for working capital, future acquisitions, general corporate purposes, and to repay an about $9.1 million existing mortgage related to its plant in Nanaimo, British Columbia. The notes will be convertible into cash, shares of Tilray’s Class 2 common stock, or a combination of cash and shares of Tilray’s Class 2 common stock, at Tilray’s discretion, the company said. Tilray stock ended the regular trading day up 14%.
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