Why Tilray Stock Is Getting Smoked After Hours

Tilray Brands Inc TLRY shares are trading lower in Thursday's after-hours session after the company announced an offering.

What Happened: Tilray said it had commenced a registered offering of $150 million worth of convertible senior notes due in 2027. The company also expects to grant the underwriters a 30-day period to purchase up to an additional $22.5 million.

Issuing convertible notes to pay off debt means the company's existing debt will get converted to equity at a future date, which means 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 outstanding 5% convertible senior notes due in 2023 and 5.25% convertible senior notes due in 2024.

Tilray is a global cannabis-lifestyle and consumer packaged goods company.

As of the third quarter ended February 2023, Tilray had $408.28 million in cash and equivalents.

See Also: Hulk Hogan Talks Cannabis, Will Launch His Own Brand: At Age 69, 'I Feel Better Than I've Ever Felt... Like I'm 25 Again'

TLRY Price Action: 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 18.20% at $1.93 at the time of publication, according to Benzinga Pro.

Photo: 7raysmarketing from Pixabay.