Tilray historical share dilutionAlmost 200 MILLION shares in the last 2 years, more to come.
Over the years, Tilray has been dependent on capital raises through dilutive convertible notes to fund its growth initiatives. As such, its outstanding shares increased substantially from Q1 FY 2022 to Q2 FY 2024 as shown in the following table.
Quarter | OS |
Q1 22 | 460,658,653 |
Q2 22 | 466,522,611 |
Q3 22 | 497,708,464 |
Q4 22 | 536,390,766 |
Q1 23 | 611,402,319 |
Q2 23 | 615,494,626 |
Q3 23 | 618,007,938 |
Q4 23 | 703,257,224 |
Q1 24 | 730,289,573 |
Q2 24 | 742,725,148 |
*Author compilation from earnings reports.
With that in mind, Tilray has an upcoming maturity date of June 1st, 2024, for $128.4 million in convertible debt under the APHA 24 notes. Given that the notes have a conversion price of $11.2 per share, it’s unlikely the noteholders will agree to convert the debt into shares, which is why I expect the company to repay the debt in cash. However, considering Tilray’s cash balance of $143.3 million, the company may resort to a capital raise to meet its obligations or refinance the debt which would increase its interest expenses, impacting its bottom line in the process.