(Bloomberg) -- Tilray Inc. added its name to a group of marijuana-exposed stocks cashing in on investor euphoria to raise billions of dollars at soaring valuations.
Tilray's plan to sell debt that can be converted into shares follows equity and equity-linked sales by others in the budding industry including Innovative Industrial Properties Inc., India Globalization Capital Inc. and Canopy Growth Corp. Buzz about marijuana has propelled cannabis-related stocks higher, leading to a 26 percent gain in the sector's first exchange-traded fund this year.
Tilray shares are trading at more than nine times the price fetched in its July initial public offering and the $400 million debt sale could raise roughly four times as much cash. Shares fell 5 percent in extended trading on Wednesday after the sale was disclosed, likely pleasing short sellers who have been swarming the space.
Innovative Industrial, a REIT that leases to the medical cannabis industry, launched its second equity offering of the year Wednesday evening. The sale's terms are more aggressive than the firm's January deal, which offered buyers a bigger discount to the prior closing price.
To contact the reporter on this story: Drew Singer in New York at dsinger28@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Jeran Wittenstein, Dan Reichl
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