Tilray Takes Aim at U.S. Cannabis Market, Plans to Raise $250 Million
May 28, 2024Leading Canadian cannabis company Tilray is setting its sights on the U.S. cannabis market with the company attempting to raise a quarter-billion dollars in investment capital to acquire U.S. cannabis companies looking forward. According to the company, the money raised in the at-the-market (ATM) equity move is specifically earmarked for acquisitions in the U.S. (and other international markets for Tilray) due to the improving prospects for regulatory reform.
Tilray’s move takes advantage of the company’s equity distribution agreement with TD Securities and Jefferies, allowing the securities and investment firms to sell Tilray’s stock at market prices. This carries some risk, as the sale will dilute the value of Tilray’s stock for existing investors. Currently, Tilray’s U.S. business is concentrated in beverage alcohol, with the company seeing growth for its collection of breweries and distilleries. For Q3 2024, Tilray posted revenue of nearly $190 million, with over $50 million coming from beverage alcohol. —Shane English
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