When people stare in wonder and awe at Tilray'scash on hand -
completely ignoring the debt, mind you - they need to keep in their heads that Tilray got that EVER DWINDLING cash by issuing shares/financings - and that share dilution decreases the ownership value of an investor's holdings.
The ownership is diluted.
https://seekingalpha.com/article/4651225-tilray-is-getting-high-share-supply
Share Dilution
As Tilray is not generating and free cash flows, acquisitions are largely funded by the issuance of common shares. The biggest dilutive event was without doubt the merger with Aphria in 2021. The merger took place at the height of the Cannabis frenzy. Since 2021 the number of shares outstanding has nearly tripled.
More detail on the purpose for share issuance was given in Tilray's annual reports. Most equity issuance was related to acquisitions. On the other hand, new issuance was also needed to fund their operations.
And more dilution can likely be expected as there are $300 million convertible notes that need to be redeemed over the course of the next 2 years.
Over the last 3 years their operations have been bleeding cash. Although in 2023 the operational cash flows were slightly positive.
Net financial position deteriorated in 2020 and 2021 but improved since 2022. The improvement of their net financial position can be fully attributed to the issuance of equity issuance. Over the last 3 years Net cash provided by financing activities totalled $ 322 million.