Why Tilray Stock Plummeted by 21% Today
It's safe to say that no one caught a pleasant buzz from Tilray Brands (NASDAQ: TLRY) stock on Friday. The Canada-based marijuana company saw its shares sink by slightly over 21%, following news of yet another round of capital raising. By comparison, the S&P 500 index had a good Friday, advancing by 1.3%.
After market hours on Thursday, the ever cash-strapped Tilray announced it had launched a registered offering of $150 million worth of convertible senior notes. In a subsequent press release it set the pricing of those securities.
The notes mature on June 15, 2027, and their annual interest rate is 5.2%. That interest will be paid semi-annually. The notes are convertible at any time into Tilray common shares, with the initial conversion rate being just over 376.6 shares per $1,000 principal amount. This represents a price of around $2.66 per share. Tilray retains an option to redeem the notes at any time after June 20, 2025 for cash.
Source Fool.com
