NEW YORK – Tilray (NASDAQ:TLRY) Brands, Inc. (NASDAQ:TLRY), a global lifestyle and consumer packaged goods company, has initiated an at-the-market equity program (ATM Program) to potentially sell up to $250 million in common stock, as per a recent prospectus supplement filed with the U.S. Securities and Exchange Commission (SEC).
The company, which has operations across several continents, aims to use the net proceeds from this offering to fund strategic acquisitions and investments, with a focus on expanding its U.S. and international presence in anticipation of regulatory advancements.
Under the ATM Program, shares of Tilray's common stock may be sold through TD Securities (USA) LLC and Jefferies LLC, acting as sales agents. These transactions may occur on the Nasdaq Global Select Market at market prices or at prices related to the prevailing market. The timing and amount of any sales will be subject to various factors at the company's discretion.
Tilray's decision to avoid using the proceeds for general working capital purposes indicates a strategic approach to strengthen its position through targeted investments and acquisitions. The registration statement for this equity program was initially filed on October 7, 2022, and became effective immediately.
Prospective investors are advised to read the prospectus supplement and accompanying prospectus, which provide detailed information about the ATM Program. These documents are available for free on the SEC’s website or can be obtained directly from TD Securities or Jefferies.
The announcement comes as Tilray continues to build upon its diversified portfolio, which includes cannabis offerings, hemp-based foods, and craft beverages. The company's commitment to innovation and quality has established it as a leader in the cannabis research and distribution space.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Investors and media looking for further information can contact Tilray Brands directly through their official channels. This news is based on a press release statement from Tilray Brands, Inc.
InvestingPro Insights
As Tilray Brands, Inc. (NASDAQ:TLRY) embarks on its strategic equity program to fuel acquisitions and expansion, the company's financial and market performance metrics offer key insights. With a market capitalization of around $1.71 billion, investors are eyeing Tilray's market moves closely.
In recent trading periods, the company has demonstrated a significant return, with a 9.84% increase over the last week and an even more impressive 23.26% surge over the past month. These figures reflect a strong short-term performance that could intrigue traders looking for volatility and momentum.
InvestingPro Tips for Tilray suggest that while the stock has shown high shareholder yield and robust returns recently, analysts remain cautious about profitability in the near term. The company has not been profitable over the last twelve months, and it does not pay dividends, which could be a consideration for long-term investors. For those interested in exploring more about Tilray's financial health and market potential, additional InvestingPro Tips are available, providing deeper analysis and forecasts.
On the valuation front, Tilray trades at a high EBITDA multiple, reflecting a premium valuation by the market despite the company's current non-profitability status. The revenue growth has been substantial, with a 24.65% increase over the last twelve months as of Q3 2023. This growth trajectory could signal potential for future profitability, aligning with the company's strategic plans for expansion.
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