Canadian-based cannabis company Tilray Inc. TLRY, -7.18% announced its pricing of $450 million in convertible debt late Thursday, valuing the company’s stock at a 15% premium. The initial conversion rate was announced at 5.9735 shares of Class 2 common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of about $167.41 per share. That represents a roughly 15% premium over Tilray’s stock price of $145.57 as of Thursday’s market close. The sale of notes is expected to be settled Oct. 10. Tilray said it would use proceeds for working capital, future acquisitions, general corporate purposes, and to repay an about $9.1 million existing mortgage related to its plant in Nanaimo, British Columbia. Tilray first announced the convertible bond sale on Wednesday, and shares sank 7.2% in regular trading Thursday, but jumped 3% in after-hours trading immediately following the announcement.
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