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Canadian cannabis player Tilray Brands (Nasdaq:TLRYIt announced on Tuesday that it will issue up to 13.1 million shares of the company's stock as part of a debt-for-equity swap deal it entered into with an unrelated party.
Shares will be issued in exchange for The convertible debt is worth $19.8 million in principal terms, the Leamington, Canada-based company said in a regulatory filing.
As part of the transaction, Tilray (TLRY) will exchange 5.25% convertible senior notes due June 1, 2024, for up to 13.1 million shares of the company's common stock, with a par value of $0.0001 per share.
Once the deal is completed, the company will no longer have… That is, 2024 The convertible notes remain outstanding until May 14, 2024, TLRY added.
The deal comes weeks after Tilray (TLRY) announced in its third-quarter financials that it no longer expects to achieve a positive rating. Free cash flow for fiscal 2024 due to delays in cash collection from sales of certain assets.