The lock-up agreements relate to its transaction with Privateer Holdings, which was completed late last year
Shares of Tilray (TLRY) are in the spotlight ahead of the pro rata release of 11M shares of Class 2 common stock from a lock-up agreement with Privateer Holdings. The previously disclosed waiver and release will take effect on April 3.
LOCK-UP AGREEMENT: On December 12, 2019, Tilray completed its transaction with Privateer Holdings, in accordance with the terms of the agreement and plan of merger and reorganization, dated as of September 9, 2019. Pursuant to the terms described in the merger agreement, Privateer merged with and into a subsidiary surviving the merger as a wholly owned subsidiary of Tilray.
Pursuant to the merger agreement, each Privateer equity holder who received shares of Tilray common stock in the merger was subject to a lock-up allowing for the sale of such shares only under certain circumstances over a two-year period.
On March 25, 2020, the Board of Directors of Tilray unanimously approved the pro rata release of 11M shares of Class 2 common stock from the lock-up agreement as a permitted sale, waiving the release requirements included in the lock-up agreement and treating the release of such shares as permitted sales. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations. The waiver and release applies to approximately 14.5% of the locked-up shares.
PRICE ACTION: In afternoon trading, shares of Tilray have gained about 2% to $6.01.
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