Tilray Calling On Shareholders To Support Dilution, Proxy Advisory Firm Joins The Plea Ahead Of Upcoming Shareholders Meeting

Canadian cannabis giant Tilray, Inc. TLRY confirmed Wednesday that another independent proxy advisory firm is recommending that shareholders back all the company’s proposals at a special meeting scheduled for July 29. This time, the proxy advisory services company Glass Lewis also advised shareholders to vote in favor of the company’s dilution as well as other proposals. 

Tilray, based in New York and Leamington, Ontario, previously released a proxy statement with an open letter from CEO Irwin D. Simon in which he called on shareholders to support proposals to be discussed up at the upcoming annual shareholders meeting. 

Some two weeks later, Tilray announced that Institutional Shareholder Services (ISS), an independent proxy advisory firm, recommended Tilray shareholders approve the company’s propositions. 

“We are pleased that the two major independent proxy advisory firms both agree that shareholders should support all of the proposals on the agenda for the upcoming Special Meeting of shareholders,” Irwin D. Simon, Tilray’s chairman and CEO stated. “Proposal 1, in particular, is a critical part of our strategy to capture market share and drive profitable growth. Glass Lewis’ endorsement affirms our conviction that Proposal 1 is in the best interest of our shareholders.”

Simon continued, “By approving all of the proposals on the agenda, our shareholders will be actively participating in Tilray’s ability to capitalize on substantial growth opportunities, expand and generate strong performance, increase shareholder rights and, ultimately, drive shareholder value.”

‘A Reasonable Proposal’ 

In relation to proposal 1, Glass Lewis told shareholders: “Given the relatively limited amount of shares available to the Company, we believe that it may be prudent for the Company to have additional common shares available for issuance.”

On the same matter, ISS previously stated: “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 conclusion, Tilray' Simon is urging shareholders to support these important steps to ensure the company’s strategic development and to advance shareholder rights.

“Your support is important, no matter how many or how few shares you own,” Tilray said in a press release.

Price Action 

Tilray’s shares closed Wednesday’s market session 3.11% higher at $14.60 per share. 

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash