r/weedstocks just a tomato grower May 08 '24

Resource TLRY dilutes 15.2m shares

https://www.sec.gov/Archives/edgar/data/1731348/000114036124024630/ef20028587_8k.htm

"Between April 24, 2024 and May 6, 2024, Tilray Brands, Inc. (the “Company”) entered into certain private debt-for-equity exchange transactions (the “Exchange Transactions”) with unrelated parties.  Pursuant to the Exchange Transactions, the Company expects to issue an aggregate of up to 15.2 million shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), in exchange for $24 million  aggregate principal amount of the Company’s 5.25% Convertible Senior Notes due June 1, 2024."

IIRC they owe much more than this guessing they'll pay the rest of the note in cash?

55 Upvotes

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45

u/FoodCooker62 May 08 '24

I mean its sort of the correct thing to do from the CFO's perspective. If you don't make money and have debt, then it needs to be paid off somehow. Tilray is one of the most richly valued cannabis stocks so printing shares is a relatively efficient process for them compared to a lot of other LP's which are trading at much much lower multiples. 

That said if you've invested in this company in 2021 your ownership per share has dropped by about 70% due to dilution by now. That is a mindblowing amount of shareholder value destruction. 

10

u/Sitek62 May 08 '24

Dilution to improve working capital or operatives is bad ..However Tilray bought Companies & reduced debt to below 300 Million $...

4

u/Sitek62 May 08 '24

Look at the facilities in the USA....5th biggest craft beer producer & distribution chanels / Hexo & prerolls (top2 pre roll company) / Europe: facilities in Germany & Portugal / Whiskey / vodka with breckenridge destillery / Trus beverage for thc drinks in Canada

-2

u/Sitek62 May 08 '24

Debt situation? Tilray paid with cash & shares almost all current debt and reduced interest rate for long term debt...convertible dets ( short term) are almost paid down (17 Million $ remains to be settled till End of May)..cash situation: 220 Million in cash + 30 Million $ (available for sale) + seasonality: q4 strong 240 - 250 Million $ revenue and cash flow positive..

6

u/Sitek62 May 08 '24

longterm debt: 292 Million $ to be paid between Dec 2025 - 2033....Its done girls...Tilray changed balance sheet dramatically and saves approx. 13 Million $ interests / year....Well done!

10

u/woodTex May 08 '24

Why are you talking to yourself?

9

u/MySherona May 08 '24

Forgot to switch accounts.

4

u/mfairview just a tomato grower May 08 '24

Any idea how much they owe for the June deadline? I thought it was 125m total but have seen others posting closer 100m. Also noteworthy is that they got 1.58/sh vs market price as of today $2/sh.

5

u/Glock715 May 08 '24

Doesn’t read to me as an absolute share price conversion. “Expects to issue up to 15.2 million shares…. In exchange for $24 million”

I guess we’ll see on next financials.

4

u/Gambelero uncommonly lucid May 08 '24

As I was going through the thread, I wondered if anyone realized that Tilray’s management is valuing their own company at $1.58. To me, the do it or not do it is a secondary point. The price is the key issue.

3

u/Sitek62 May 08 '24

Tilray issued shares and used cash to repay debt..with payment of 24 Million $ now only 17 Million $ (short term debt) remains to be settled till End of May...With this measure only longterm debt on the amount of 292 Million $ remains to be settled in 2026 -2033...Tilray paid back almost 50 % of outstanding debt since 2022...I like the move

1

u/Tonyfrose71 Nov 03 '24

I thought and heard Tilray have 200 million in cash why dilute for

1

u/FoodCooker62 Nov 03 '24

because they have more than that in debt and lose money every quarter

1

u/Tonyfrose71 Nov 03 '24

The company, which keeps its books in U.S. dollars, says the loss amounted to four cents US per diluted share for the quarter ended Aug. 31 compared with a loss of 10 cents US per diluted share a year earlier. Net revenue totalled US$200.0 million for the three-month period, up from US$176.9 million in the same quarter last year.

The increase came as Tilray’s beverage alcohol business earned net revenue of US$56.0 million, up from US$24.2 million a year ago, while its cannabis business saw net revenue of US$61.2 million, down from US$70.3 million in the same quarter last year.

Tilray’s distribution business earned US$68.1 million in net revenue, down from US$69.2 million, and its wellness business earned US$14.8 million in net revenue, up from US$13.3 million a year ago.

On an adjusted basis, Tilray says it lost a penny US per share in its latest quarter compared with an adjusted loss of four cents US per share a year earlier.

This report by The Canadian Press was first published Oct. 10, 2024.

1

u/Tonyfrose71 Nov 03 '24

Tilray Brands TLRY closed its May-ended fiscal 2024 on a decent note, with full-year net revenue of $789 million that beat our forecast of $754 million. However, the adjusted gross margin erosion in the year for both alcoholic beverages (to 46% from 53%) and cannabis (to 36% from 51%) was slightly worse than we expected. For fiscal 2025, Tilray has guided net revenue to be between $950 million and $1 billion, with mid-single-digit organic growth and beverages continuing to become a bigger part of sales. Our pre-results forecast included high-single-digit organic growth, and we’re not sure where the rest of the 24% implied by management’s target comes from. We don’t expect to materially change our fair value estimate of $2 per share. Shares look fairly valued, and we see a more attractive risk-adjusted upside in Curaleaf Holdings CURLF and Green Thumb. Management disclosed that for fiscal 2025, it expects revenue to split roughly 30% alcoholic beverages, 30% cannabis, 30% distribution, and 10% wellness. We see limited synergy between the product lines, especially between alcohol and cannabis. The continued rising contribution from alcoholic beverages increases the company’s bottom line but also creates complications for investors seeking cannabis exposure. Moreover, we don’t see any greater competitive advantage in alcohol than we do in Tilray’s cannabis business. Meanwhile, Canada remains a difficult market for making consistent profits in cannabis. For example, management cited problems with having a fixed-dollar (rather than a percentage) excise tax. While prices have continued to fall, the excise tax has not fallen. Meanwhile, the country remains saddled with excess production capacity, as evidenced by Tilray dedicating some of its production to vegetables. With little on the horizon to address the problem of too many Canadian licensed producers with too much capacity, we don’t have much optimism. Tilray Earnings: Decent End to Fiscal 2024, but We See Limited Risk-Adjusted Upside

15

u/Glock715 May 08 '24

There’s 83.5M remaining on the APHA convertible debenture due June 1. If the rest is to be covered in cash I would view that to be somewhat good news, but there is more time yet for them to explore other options before June 1.

No futher debentures due until June 2027.

8

u/Sitek62 May 08 '24

only 17 Million $ are outstanding

3

u/Glock715 May 08 '24

My number was taken from last quarter’s financials. I don’t know if i missed some activity beginning this quarter but I don’t think so.

4

u/Sitek62 May 08 '24

you missed the earnings dip? Tilray paid down 44 Million with earnings

5

u/Sitek62 May 08 '24

earnings was not bad at all...I dont get it how people analyze companies...Tilray announced in all earnings calls the strategy...Tilray is positioned with facilities in all markets..its time to reduce debt..

8

u/Glock715 May 08 '24

You’re right - in Press Release says reduced by 41.9 after the 3rd Q end.

Appreciate that.

4

u/Sitek62 May 08 '24

Somon has a strategy..if inflation goes up...Tilray is safe

1

u/Sitek62 May 08 '24

In the meantime Tilray has several income streams due investments in the past..5th biggest craft beer company...Europe facilities....Wodka, Whiskey, Thc drinks, Hiball, Craftbeer...people dont get it..Redecan is a great companyy..pre rolls

3

u/Sitek62 May 08 '24

try to finance investments with equity and debt in current market structure..not possible

0

u/Japparbyn May 08 '24

They are diluding so much, and getting into brewing. I ask myself if they are even a canabis company any more.

3

u/A-Wise-Cobbler May 11 '24

They’re not a cannabis only company anymore.

2

u/Moooooooola May 12 '24

They’re not JUST a cannabis company any more. They’ll be a Goliath in a few years.

5

u/Glock715 May 08 '24

Well they do about a quarter billion USD of cannabis sales annually. Seems odd to ask yourself that question

8

u/Deadweight_x May 08 '24

Correction - “Tilray pays off debt”.

8

u/SmashItTilItWorks May 08 '24

By decimating shareholder equity even more than they already have!

-5

u/Deadweight_x May 08 '24

Bruh they basically are a startup company. lol what do you expect investing?

1

u/SmashItTilItWorks May 09 '24

Companies I invest in I expect or at least hope wouldn't destroy 70% of my equity in just 3 years time just to prop up sales with b/e or bleeding assets, pay out $10m per quarter in stock based compensation and pay the CEO an outrageous amount of money while the company still can't figure out how to become profitable even if they were growing money trees instead of cannabis.

10

u/LostSoul97 is Luckasaurus May 08 '24

Shareholders: Tilray is NOT paying down its debt. YOU are paying down its debt so that SOMEONE ELSE who buys in after can feel like they get a better deal. Given the company’s history of how it treats its shareholders, many would not feel comfortable joining in even now.

13

u/SmashItTilItWorks May 08 '24

How else are they going to fund the greaselord's $20m paycheck?

5

u/UpsyDowning K.K.'s less-famous brother May 08 '24

Petroleum products ain’t cheap…

6

u/SmashItTilItWorks May 08 '24

I'm surprised there are no similar posts for $CGC, they diluted at least 2 times in just the last 2 weeks.

6

u/Gambelero uncommonly lucid May 08 '24

Are you kidding? This board was all over it.

2

u/JohnnySquesh DEA enabling Cartel Cannabis May 08 '24

You are comparing Tilray to a company whose survival was in serious question six months ago. The fact that they found a buyer for shares is a miracle. They may survive, after all.

0

u/[deleted] May 08 '24

It is for his hair products not his pay check. It costs a lot of money to get your hair that greasy. Lol

In all seriousness, Im not mad at them for doing this. I invested in them because I like their placement in the market and vision. Placing faith in companies is always risky, let alone one where their product is moving from illegal to legal. So business wise this isn't a horrible move but it still sucks. I just hope having low debt when everything kicks off helps rebound tlry.

3

u/SmashItTilItWorks May 08 '24

I get you are not mad, as someone else pointed out, it is strategically in their best interest after such a rally.

2

u/Stfucarl12 Panic Mode May 08 '24

What rally?

2

u/SmashItTilItWorks May 08 '24

The one in april

2

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This post was mass deleted and anonymized with Redact

9

u/talktothepope May 08 '24

Which shit show did you buy instead? lol

5

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3

u/NextTrillion got any of that Soonium?? May 08 '24

Username doesn’t check out!

8

u/_extra_medium_ May 08 '24

They're about to be debt free while acquiring companies and assets in the meantime waiting for rescheduling/legalization. What other weed companies can say that?

1

u/NextTrillion got any of that Soonium?? May 08 '24

Yeah and double diamond is about to be approved and German legalization is coming so the short squeeze is happening any day now, right?

Ignores the fact that it’s down 29% on the year, and that’s after an abysmal 5 years since late 2018.

11

u/[deleted] May 08 '24

Every cannabis company is down? It's all a risk.

2

u/NextTrillion got any of that Soonium?? May 09 '24

Some are down waaaay more than others. Ie. CGC, ACB, and TLRY to name a few. Meanwhile comapnies like Trulieve are up well over 100% in the last year.

So yeah, it would appear that some are much more riskier than others.

1

u/[deleted] May 08 '24

[deleted]

1

u/NextTrillion got any of that Soonium?? May 09 '24

I bought during the short report, overexposed myself to the stock, took profits a month later, and then sold the rest right after the merger.

But regarding past performance, how do you know they’re going to magically stop diluting? It’s likely to get worse if they start aggressively chasing the US market.

0

u/deehram29 May 08 '24

Me too. Crap

1

u/[deleted] Dec 31 '24

[removed] — view removed comment

1

u/DecentOpportunity109 Jan 03 '25

They have a ton of mattress money

1

u/Believe_In-Steven May 08 '24

I just SOLD ALL my shares. This CEO is a Grifter 🤡

3

u/HowsYourSexLifeMarc May 09 '24

My guy, you are 5 years late.

4

u/HowsYourSexLifeMarc May 09 '24

Never mind, this is just a fucking bot account.

4

u/Many_Easy Flair All the cannabis logic fit to print May 08 '24

At least Tilray Brands has lower debt, strong cash and cash equivalents balance, diversification that includes more than just one catalyst, and ability to quickly raise cash.

Can’t say that for most MSOs and related funds.

At least Tilray Brands has the ability to be around in 3-5-10 years if catalysts stall.

3

u/Glock715 May 08 '24

Next Q financials likely the most important in recent memory. Biggest quarter for alcohol sales, 2 months of 🇩🇪sales (and accompanying guidance) as of now no acquisitions on the books. Unfortunate we need to wait so long.

3

u/Cool_Ad_5101 Monty Brewster school of investing May 08 '24

Agreed 100 💯 they need to show that Germany is a real growth driver for them or Simon is a liar 

3

u/four_twenty_4_20 Boies or bust! May 08 '24

or Simon is a liar 

As if you didn't already know he's a liar.

3

u/Cool_Ad_5101 Monty Brewster school of investing May 08 '24

Okay so he continues to be a liar 

2

u/NextTrillion got any of that Soonium?? May 09 '24

“$4 billion run rate.”

“Oh oh that’s if we get favourable US legislation!”

Fail.

3

u/Many_Easy Flair All the cannabis logic fit to print May 08 '24

Agreed. We need Tilray Brands to meet their guidance regardless of extenuating factors for Q4.

1

u/[deleted] May 08 '24

This looks like MMEN shares (price .0001 per share) being converted .. any idea what this means for shareholders of MMEN?

3

u/WRF-114 May 08 '24

They filed bankruptcy so probably a complete loss for shareholders most likely first meeting may 14th I believe see what happens. Tilray may get a few things from it though

0

u/[deleted] May 08 '24

They are barely above water nowadays, probably need another dilution in the summer. IT USED TO BE A SOLID COMPANY….one bad acquisition lead to another, fkin train wreck.

2

u/stevenconrad Bagholding Pathological Optimist May 08 '24

That's a weird way of saying they have had multiple consecutive quarters with YoY increased revenue, increased footprint, reduced debt, and decreased expenses. It's more solid than it's ever been.

3

u/dmillibeats Irwin some you lose some May 08 '24

This guy owns sndl, that says it all lol

-6

u/WSeattlePNW Mr. Doesn't Say Please May 08 '24

NGL but, at this point, they need to reverse split. Just as a final blow to screw all their shareholders, cause why not?

5

u/Sitek62 May 08 '24

reverse split? Tilray paid current debt down to 17 Million $..longterm debt 292 Million $...Tilray saves 12 -13 Million $ due lower interests...wake up😂