Tilray Brands Inc TLRY shares are trading lower in the after-hours session after the company announced an offering.
Tilray said it will begin a register offering of $150 million worth of convertible senior notes in 2027. The underwriters will also receive a 30-day period to purchase a further $22.5 million, and it expects to give the underwriters a further 30-day period.
When the company sells convertible notes, the company's current debt will be converted to equity at a future date, which is a dilution for the existing shareholders.
Tilray said it intends to use a portion of the proceeds to finance the repurchase of a portion of its 5% convertible senior notes due in 2023 and 5.25% convertible senior notes due in 2024.
Hulk Hogan Talks Cannabis, Will Launch His Own Brand: At age 69, I feel better than I've ever Felt. Tilray has a 52-week high of $5.12. It's making new 52-week lows in Thursday's after-hours session.
Tilray shares were down 18.2 percent at $1.93 at the time of the first trading, according to Benzinga Pro.