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Tilray 150 mil offereing and

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Topic starter

DH, Can 

So, I understand that this 150 million offering will dilute shares,, but am not sure how to quantify.  Am guessing, that will make a video with a full explanation and it's effect.  At the moment, $TLRY down 22% to $1.89,,, and am hoping this an over reaction in terms of dollars and sense that i cannot calulate. FYI added 50% to my position at $1.92 and would love your thoughts....

Thank you Sir

420Joe May 30, 2023 10:03 am

@elmendiceyahoo-com TLRY is one I am tracking and today's trendlow down to 1.78 dictates a future move to 1.06. And with the market in general about to go into complete freefall, I'd personally be selling any rally.

420Joe June 1, 2023 8:58 am

@elmendiceyahoo-com Today's move in TLRY to 1.63 now forces me to lower my long term buy target to .97.

1 Answer

First, thanks for reaching out to me on this.  I have been vamping up a lot of content on these bigger stocks and will try and do a video on TLRY for Wednesday of next week (After the US holiday).  

According to what I read - I read some bits and pieces really quickly but, want to dive in a bit deeper - This is a convertible offering.  That would be dilutive at some point, but not immediately.  If they are convertible, then debt can convert into shares. But, milestones need to occur first, such as time or stock price, revenue levels, or some other metric.  

While it may not be necessary to read all of the fine print, whereas previous, there may have been 1 billion shares of a company, an offering of 150M shares would dilute any current shareholder by 15%.  Future revenue on a per share would be 15% less that previous.  Same goes for earnings.  Off hand, I do not know the current share level of TLRY.  This merely serves as an example.  That being said, any dilution would not occur until after the conversion.  The current share level remains the same until the shares are converted.  

I will try and do a video on this for next week.  

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