Photo courtesy of Tilray.
Cannabis company Tilray Inc. (Nasdaq: TLRY) announced Tuesday via an 8-K filing that it has signed a sales agreement with Cowen and Company, LLC, upon which the company can issue and sell shares via Cowen with a total offering price of up to $400 million.
The company said the agreement doesn’t carry an obligation for Tilray to sell any shares, and that any sales will be an “at-the-market offering.” The sale of the shares will be effected under a Form S-3 registration statement.
Under the agreement, every time Tilray wants to issue and sell shares, it would send a notice to Cowen that includes basic parameters for the sale, such as the number of shares to be issued; the period during which sales should be completed; a limit on the number limit of shares to be sold in one day; and the minimum price.
Once Tilray provides Cowen with a placement notice, Cowen will act as a sales agent for Tilray.
The sales agreement can be terminated at any time by either Tilray or Cowen upon notice to the other party.
"Tilray became eligible to file the registration statement following the one-year anniversary of its IPO in July. We consider it a good corporate practice to maintain a shelf registration, in line with other companies at our stage of development in a high-growth industry. Doing so provides Tilray with flexibility to support our global growth strategy and drive value creation over the long term," the company said.
The stock was down 2.15% at $30.46 at the time of publication Wednesday.
Comments
Log in or sign up to join the conversation.