Tilray Subsidiary Secures New CAD 53 Million Credit Agreement; LSB Industries Reports Fourth Quarter Results

Tilray Brands, Inc. announced in its recent Form 8‑K filing that its majority‐owned subsidiary, Aphria Diamond Inc., has refinanced its existing term loan by entering into a new Credit Agreement. The agreement, executed on February 21, 2025, was arranged with Canadian Imperial Bank of Commerce serving as both lender and administrative agent.

Under the Credit Agreement, Aphria Diamond Inc. secured term loans in the aggregate principal amount of CAD 53 million. Of these proceeds, approximately CAD 48.17 million were used to fully repay all outstanding obligations under a previously established credit facility, which had been set to mature on November 28, 2025. The new term loans have a maturity date of February 21, 2028 and require quarterly principal repayments of CAD 2 million beginning with the fiscal quarter ended August 31, 2025. Additionally, the borrowing entity has elected to pay interest based on the one‑month Term CORRA plus a margin of 1.75%, with the margin subject to quarterly adjustments in line with the contractual terms.

The Credit Agreement is further supported by robust security arrangements, including a first lien on substantially all of the assets of Aphria Diamond Inc., limited recourse guarantees from its shareholders, and an overall guarantee by Tilray capped at CAD 60 million. The agreement also imposes customary financial covenants, including the maintenance of minimum fixed charge coverage and maximum total funded debt ratios. Notably, the refinancing did not trigger any early termination penalties related to the payoff of the prior credit facility.

In a separate exhibit filed concurrently with the 8‑K, LSB Industries, Inc. provided its full suite of operating results for the fourth quarter and full year ended December 31, 2024, as well as a product sales volume outlook for 2025. Key highlights from LSB Industries’ report include net sales of $134.9 million in the fourth quarter of 2024, a net loss of $9.1 million that reflected significant turnaround costs and non‑cash asset write‑downs, and an increase in adjusted EBITDA for the quarter. The company also reported full‑year net sales of $522.4 million against a prior year figure of $593.7 million, along with a net loss of $19.4 million for 2024 compared to net income of $27.9 million in 2023. LSB Industries provided detailed breakdowns of product segment performance, average selling prices, input cost improvements, and production as well as sales volume forecasts for 2025 amid its ongoing operational and strategic initiatives.

Tilray’s recent transaction underscores its ongoing efforts to optimize its capital structure through strategic refinancing of its operating subsidiaries. Meanwhile, the inclusion of LSB Industries’ operating results in the filing highlights developments within the broader landscape of the chemical and fertilizer sectors, reflecting both the challenges and recovery initiatives currently underway in the industry.

Both disclosures offer insights into evolving strategies—Tilray’s transaction reinforcing its financial discipline and LSB Industries’ detailed operational update pointing to efforts aimed at addressing turnaround and growth opportunities in a challenging market environment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Tilray’s 8K filing here.

About Tilray

Tilray, Inc engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc is headquartered in Canada.