Tilray short-sellers post mark-to-market profits of $29 million after stock drops

Short-sellers in battleground Canadian cannabis stock Tilray Inc (NASDAQ:TLRY) posted US$29 million in mark-to-market profits after its shares fell sharply Monday, an analyst for S3 Partners said.

Shares of Tilray dropped as much as 21.04% to the session low of US$97.12 on Nasdaq before paring its losses to trade at US$105.96 by midsession.

Ihor Dusaniwsky, the managing director for Predictive Analytics in S3, told Proactive Investors that Tilray short interest in Tilray stands at US$400 million, with 3.25 million shares shorted that account for 31.5% of the float in the Canadian cannabis company.

READ: Here’s how much lower Tilray shares have to go before shorts can make money on the bet

The rates through which investors could borrow stock to short the company has become more affordable, he said.

“Tilray stock borrow rates have eased substantially, financing rates on existing shorts is 129% fee and rates on new shorts are ranging from 90% fee to 160% fee this morning. There has been a small amount of stock available to borrow, several hundred thousand shares,” said Dusaniwsky.

Tilray climbed last week to an all-time high of US$300 per share before pulling back sharply.

Story by ProactiveInvestors