Tilray Incâ€™s (TLRY US) stock price is down almost 3% after reporting 4th quarter results which beat analystsâ€™ revenue estimates. 4th quarter EBITDA losses and EPS loss which were more than twice as large as expectations turned an aftermarket rally into a losing day today.
Tilray Inc (TLRY US) short sellers are in a bind with stock loan inventory virtually all taken down and ongoing short selling demand forcing stock loan rates up markedly.
Tilray short interest is $265 million; 3.78 million shares shorted; 19.56% of float; 24.40% stock borrow fees on existing shorts and 45% to 110% fees on the new miniscule short sales that are being approved.
The 10 major shorts in the Cannabis sector, which make up over 95% of all shorts in the sector, were down $28 million in mark-to-market losses today, bringing year-to-date losses to $1.02 billion.
Short sellers have been covering some of their Tilray short positions over the last week. With shares shorted down 292k shares, -7.72%, as Tilrayâ€™s stock price declined by 14.24% over that same time period. Shares shorted are 3.49 million shares, $287 million of Short Interest. This is the lowest level of shares shorted since early December.
TLRY US\CN short interest is $286 million; 3.43 million shares shorted; 33.24% of the float with a stock borrow rate on existing short positions at 182% fee (per annum).
There is very little stock loan available in this name and there is not enough stock available for any large short sales.
The mergers and acquisition activity in the Cannabis Sector continued today with Green Growth Brands Ltd. offering $2.1 billion in a hostile takeover of Aphria Inc (APHA). This follows Altria Incâ€™s announced $1.8 billion investment in Cronos Group (CRON); Constellation Brands purchase of 5.5% of Canopy Growth Corp (CGC); Molson Coors Brewing Coâ€™s joint venture with HEXO Corp (HEXO); and Anheiser-Busch Inbevâ€™s research partnership with Tilray Inc (TJRY).