Tilray files to sell $400 mln of stock

TruTrace Technologies

11/09/2019 14:19

** Tilray  TLRY.O  shares down 2.7% to $30.30 premarket as
co enters $400 mln stock sales agreement
    ** Cannabis maker late Tues disclosed "at the market
offering" (ATM), saying may sell Class 2 common stock through
Cowen as sales agent. Filing https://www.sec.gov/Archives/edgar/data/1731348/000119312519242155/d801940d8k.htm
    ** Tilray has ~97.6 mln total shares outstanding for market
cap just north of $3 bln; co has 22.2 mln shares of free float,
per Refinitiv data
    ** Co raised $153 mln in Jul 2018 IPO at $17/sh and returned
to capital markets 3 mths later to raise $475 mln through a 5-yr
convertible bond sale
    ** At end-Jun, Tilray had ~$184.6 mln of cash on hand vs
~$500 mln at end-Dec
    ** ATM comes a day after major shareholder Privateer agreed
to extend its lock-up of 75 mln shares (77% stake) to 2 years
 urn:newsml:reuters.com:*:nASC0AAXV
    ** Last week, Cowen analysts slashed PT on TLRY from $150 to
$60, citing "challenging" conditions and "early growing pains"
in cannabis industry; though said while TLRY has been most
impacted by weak industry supply initially, it has indicated
improvement  urn:newsml:reuters.com:*:nL3N25U2OT
    ** 5 of 16 brokerages covering TLRY rate stock "buy" or
stronger, 10 are neutral, 1 recommends selling; median PT is
$54.50 (Refinitiv data)
    ** TLRY hit record high $300 last Sept. Stock has fallen 56%
in 2019 

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