Tilray Continues Urging Shareholders To Approve Dilution – Proxy Advisory Firm ISS Also Recommends Approval

Tilray, Inc. TLRY announced Monday that Institutional Shareholder Services (ISS), an independent proxy advisory firm recommended Tilray shareholders to vote in favor of the company’s proposals at the special meeting scheduled for July 29.

Previously, the Canadian cannabis giant released a proxy statement with an open letter from the company’s CEO Irwin D. Simon, in which he called on shareholders to support proposals to be discussed up at the upcoming annual shareholders meeting. 

At the time, Simon urged shareholders to back a proposal that will enable the company to increase the number of shares to support future acquisitions. Furthermore, Tilray's CEO asked shareholders to authorize several amendments and changes to the company’s organizational documents that would expand shareholders' rights.

“ISS’ endorsement affirms our conviction that the proposals to be voted on at the Special Meeting are in our shareholders’ best interests,” Irwin D. Simon, Tilray’s chairman and CEO stated. “By approving these proposals, our shareholders will be actively participating in Tilray’s ability to capitalize on substantial growth opportunities, expand and generate strong performance and, ultimately, drive shareholder value.”

In relation to proposal 1, ISS proclaimed: 

“The size of the proposed increase in the number of authorized shares of common stock is reasonable and there are no substantial concerns with the company's past use of shares.”

In relation to proposals 2,3,4, and 5 or “the governance proposals,” ISS stated: 

“The charter amendments to declassify the board, allow shareholders to remove directors without cause, allow shareholder action by written consent and opt-out of the Delaware 'freeze-out' provision would improve shareholder rights and director accountability.”

Price Action 

Tilray’s shares were trading 2.35% lower at $15.79 per share at the time of writing Monday morning.

Photo: Courtesy of davide ragusa on Unsplash