Why Tilray Stock Tumbled Last Month
A financial engineering move raised its ever-growing share count.
Overview
Tilray Brands (NASDAQ: TLRY) doesn't, to put it politely, have a history of pleasing its investors. That was well in evidence across June, as the company -- diversifying from its roots as a pure-play marijuana business -- fell into one of its more unattractive habits, announced a new acquisition, and saw an analyst cut his price target on the shares. The combination of these developments pushed Tilray's stock down by nearly 19% that month.
Over the course of its existence, the chronically loss-making Tilray has often issued new shares in order to bolster its finances. Sure enough, on two separate days in June -- one close to the start of the month, and one at the end -- the company divulged chunky stock flotations. It minted just over 1.2 million new shares in the first, and an additional 2.6 million-plus in the second.
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Originally published at www.fool.com.