Tilray reduces convertible debt by $205 million over three quarters

By Devika Patel

Knoxville, Tenn., April 9 – Tilray Brands, Inc. has reduced convertible debt by over $200 million this fiscal year and management plans to continue chipping away at the company’s debt.

“Over the last three quarters, we significantly reduced our convertible debt by $205 million, decreasing our net debt to approximately $175 million, and we will work to continue reducing our indebtedness, optimizing our capital structure and enhancing our financial flexibility,” chairman and chief executive officer Irwin D. Simon said on the company’s third quarter ended Feb. 29 earnings conference call on Tuesday.

“The net reduction in our convertible debt will decrease our annual interest expense by $9.8 million, which flows directly to adjusted net loss and adjusted free cash flow,” he said.

Net revenue of $188.3 million increased about 30% in the third quarter, compared to $145.6 million in the prior year quarter.

Adjusted EBITDA was $10.2 million in the third quarter, compared to $13.3 million in the prior year quarter.

Cash and cash equivalents were $146,253,000 as of Feb. 29, 2024, compared to $206,632,000 as of May 31, 2023.

Long-term debt was $165,648,000 as of Feb. 29, 2024, compared to $136,889,000 as of May 31, 2023.

Current portion of long-term debt was $12,351,000 as of Feb. 29, 2024, compared to $24.08 million as of May 31, 2023.

Tilray is a Leamington, Ont.-based cannabis and consumer packaged goods company.

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