Tilray upsizes its convertible debt offering, may raise up to $500 million

Tilray Inc (NASDAQ:TLRY) shares took off following the pricing and upsizing of its convertible debt offering.

The cannabis company announced after the bell Thursday that it would offer $450 million worth of convertible senior notes, up from the initial $400 million offer, due in 2023 in a private placement to qualified institutional buyers.

Shares jumped 4.5% to $152.15 in Friday pre-market trading.

The notes will be convertible into cash, shares of its Class 2 common stock, or a combination of the two.

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The expected $435 million in proceeds stemming from the offering will go towards working capital, acquisitions and corporate expenses as well as paying off the $9.1 million existing mortgage on its facility in British Columbia. The first buyers will be given the option to acquire an additional $67.5 million worth of notes, an increase from the initial $60 million valuation.

If the first buyers exercise this option, the capital raise would total $500.5 million.

The Canadian cannabis company cultivates and distributes medical cannabis to 12 countries, including Canada, Australia, New Zealand and Germany.

Story by ProactiveInvestors