- Global cannabis stock Tilray Brands (TSX:TLRY) intends to raise up to US$250 million through an at-the-market equity program to fund its U.S. expansion plan
- The move intends to capitalize on the pending U.S. reclassification of cannabis as a lower-risk drug
- Tilray is a global cannabis and consumer packaged goods company managing more than 20 brands in more than 20 countries
- Tilray stock has given back 10.77 per cent year-over-year and 85.24 per cent over the past five years
Global cannabis stock Tilray Brands (TSX:TLRY) intends to raise up to US$250 million through an at-the-market equity program to fund its U.S. expansion plan.
It intends to use the funds for investments or acquisitions to unlock value from regulatory advancements or other prospective expansion opportunities.
TD Securities and Jefferies are acting as distributors, allowing them to sell TLRY stock according to timing, quantity and valuation factors determined by Tilray management.
Investors can consult the prospectus supplement for the offering filed with the U.S. Securities and Exchange Commission.
Why is Tilray tapping the public market?
The capital raise follows cannabis’ proposed reclassification from a Schedule I controlled substance, a category that includes heroin and ecstasy, to a Schedule III substance, which include ketamine, Tylenol with codeine, and other compounds with accepted medical benefits.
U.S. President Joe Biden has voiced his support for the legislative change, stating in a video posted Thursday on X that it will help to reverse “long-standing inequities” and “lift barriers to housing, employment, small business loans and so much more for tens of thousands of Americans.”
The proposal is now under a 60-day period for public comment, after which the U.S. Drug Enforcement Administration is expected to officially reschedule the drug, marking the federal government’s first acknowledgement of cannabis’ medical benefits, allowing federal researchers to study it for the first time since the Controlled Substances Act passed in 1971, and unlocking tens of billions in value in a market expected to grow steadily over the next five years.
About Tilray Brands
Tilray is a global cannabis and consumer packaged goods company managing more than 20 brands in more than 20 countries, including Broken Coast, Redecan and Good Supply.
Tilray stock (TSX:TLRY) last traded at C$2.90 per share. The stock has given back 10.77 per cent year-over-year and 85.24 per cent over the past five years.
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