Tilray intends to use the proceeds from the offering for general corporate purposes
Tilray, Inc, a global pioneer in cannabis production, research, cultivation and distribution, announced today that it has priced an underwritten registered offering of 7,250,000 shares of its Class 2 common stock and, in lieu of Class 2 common stock, pre-funded warrants to purchase 11,750,000 shares of Class 2 common stock, and accompanying warrants to purchase 19,000,000 shares of its Class 2 common stock (or, for investors who so choose, pre-funded warrants to purchase shares of Class 2 common stock) at a price to the public of $4.76 per share and accompanying warrant (or $4.7599 per pre-funded warrant and accompanying warrant).
Tilray's gross proceeds from this offering are expected to be approximately $90.4 million, before deducting underwriting discounts and estimated offering expenses.
All of the securities in the offering are being sold by Tilray. The warrants will be exercisable beginning six months after issuance at a price of $5.95 per share of Class 2 common stock and have a term of five years commencing on the date of exercisability. The offering is expected to close on March 17, 2020, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering for general corporate purposes.
Canaccord Genuity LLC is acting as sole book-running manager for the offering.
The offering is being made only by means of a prospectus supplement and an accompanying prospectus filed as part of an automatically effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC") on Form S- 3 on September 11, 2019.
The prospectus supplement and accompanying prospectus for the offering will be filed with the SEC and will be available on the SEC's website, www.sec.gov.
To learn more about Tilray visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
This could be one of the best investing opportunities of 2020
Legislative changes are blowing through the US, and with it, an ever-increasing number of states legalising cannabis for recreational use.
With the success seen in Illinois, which legalised for adult-use on January 1 and saw products moving off the shelf at an unprecedented rate, this company is primed to take advantage of the booming US recreational market.
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And with the sector-wide pullback of 2019, this company is now at a bargain-basement price.
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