Canadian medical cannabis producer and distributor Tilray (TLRY) - Get Report said it plans to issue up to $400 million in additional stock as the company continues its expansion plans amid ongoing legalization of pot-infused products in North America and internationally.
In an 8-K filing filing, Tilray said that it will sell up to $400 million in stock once an S-3 registration statement is effective. The firm will work with Cowen and Co. on the stock sale.
Tilray became eligible to file the registration statement following the one-year anniversary of its initial public offering in July.
"We consider it good corporate practice to maintain a shelf registration, in line with other companies at our stage of development in a high-growth industry," the company said in the filing. "Doing so provides Tilray with flexibility to support our global growth strategy and drive value creation over the long term."
The move came just two days after the company said it signed a merger agreement with Privateer Holdings, its largest shareholder, that will extend Privateer's lock-up period and provide for the issuance of up to 75 million Tilray shares to Privateer's equity holders.
In July 2018, the company became the first cannabis to list on the Nasdaq Stock Market.
Shares of Tilray were down 4.85%, or $1.51 a share, at $329.62 in early trading on Wednesday.