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Tilray, Inc. Announces Agreement To Exchange An Additional $72.9M In Principal Amount Of Its 5.00% Convertible Senior Notes Due 2023 For Common Stock

November 24, 2020 9:01 am
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Tilray, Inc. Announces Agreement To Exchange An Additional $72.9M In Principal Amount Of Its 5.00% Convertible Senior Notes Due 2023 For Common Stock

earch, cultivation, production and distribution, today announced that it has entered into privately negotiated exchange agreements with certain holders of its 5.00% Convertible Senior Notes due 2023 (the "Notes"). Pursuant to the exchange agreements, the Company will exchange approximately $72.9 million in aggregate principal amount of Notes plus accrued interest, for approximately 6.4 million shares of the Company's Class 2 common stock. The exchange transactions are expected to be completed on or about November 25, 2020, subject to customary closing conditions. Following the exchange transactions, approximately $277.9 million in aggregate principal amount of the Notes will remain outstanding.

Effectively, the Company agreed to repurchase a portion of its Notes at a 42% discount to their face value, using shares issued at the Company's most recent closing market price (which is equivalent to a conversion price of $6.68 per share).

The purpose of the transaction was to reduce the Company's debt and eliminate approximately $3.6 million in annual cash interest costs.

The shares of the Company's Class 2 common stock issuable upon the exchanges have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or a solicitation to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.