Dividend Stocks

Why Is Tilray (TLRY) Stock Down 23% Today?

Tilray (NASDAQ:TLRY) stock is falling hard on Friday after the company announced details of a $150 million registered direct offering.

The $150 million registered direct offering covers 5.20% Convertible Senior Notes due 2027. Underwriters of the offering also have a 30-day option to acquire another $22.5 million aggregate principal amount of Notes.

Tilray notes that the registered direct offering will give it additional cash proceeds of $15 million or $37 million if the underwriters exercise their options. It will also bring its cash, cash equivalents, and marketable securities on hand to about $440 million.

Tilray also says it will use funds from the offering to pay down current debts. That includes its 5.00% Convertible Senior Notes due 2023 and 5.25% Convertible Senior Notes due 2024. It will also use the money for general corporate purposes.

What This Means For TLRY

Management at Tilray sees the registered direct offering as a positive. Irwin Simon, chairman and CEO of the company, said as much in a press release.

“We successfully executed a favorable refinancing which demonstrates the strength of our Company and investor confidence in our management team and strategic plan.”

However, today’s news is sending shares of TLRY stock 22.9% lower as of Friday morning. With that comes some 4 million shares changing hands with the company’s daily average sitting at abotu 10.7 million shares.

Investors looking to keep up with all of the hottest stock market news today will want to keep reading!

We’ve got all of the biggest stock market stories traders need to know about on Friday! That includes what’s going on with shares of SunCar Technology (NASDAQ:SDA), eFFECTOR Therapeutics (NASDAQ:EFTR), and Appreciate Holdings (NASDAQ:SFR) stock today. All of this news is ready to go below!

More Stock Market News For Friday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.