Tilray to exchange $124.3 million of convertibles for common stock

By Cady Vishniac

Detroit, Nov. 23 – Tilray, Inc. plans to convert $124.3 million face amount of its 5% convertible senior notes due 2023 to 10.9 million shares of the company’s class 2 common stock on Nov. 24, according to a press release.

The notes are being repurchased at a 36% discount to their face value using shares issued at the company’s most recent closing market price, equivalent to a conversion price of $7.36 per share.

The purpose of the transaction is to reduce Tilray’s debt and eliminate $6.2 million annually in cash interest costs.

Following the transaction, approximately $350.7 million of the convertibles will remain outstanding.

Tilray is a Nanaimo, B.C.-based medical cannabis company.

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