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Note 14 - Stockholders' Equity
 3 Months Ended
Aug. 31, 2025
Notes to Financial Statements  
Equity [Text Block]

Note 14. Stockholders' equity 

 

Issued and outstanding

 

Pursuant to its Fifth Amended and Restated Certificate of Incorporation, the total number of shares that the Company is authorized to issue is 1,426,000,000 shares, of which 1,416,000,000 shares are Common Stock (the “Common Stock”), and 10,000,000 shares of which are Preferred Stock (the “Preferred Stock”). As of  August 31, 2025, the Company had issued and outstanding 1,118,291,159 shares of Common Stock, 3,213,914 shares of Treasury Stock (the “Treasury Stock”) and no Preferred Stock. Historically, the Company has issued shares of its Common Stock in consideration for acquisitions and other strategic transactions, settlement of convertible notes, settlement of litigation claims, in connection with public offerings and as payment of dividends to non-controlling interests for profit distributions.

 

During the three months ended August 31, 2025, the Company issued the following shares of Common Stock:

 

 

a)

34,443,799 shares of Common Stock pursuant to its At-the-Market (“ATM”) program, which generated gross proceeds of $23,044 and net proceeds of $22,491, after deducting $553 in commissions and other fees associated with these issuances.

 

b)

12,591,816 shares of Common Stock in the amount of $4,800 to exchange the aggregate principal of $5,000 of its TLRY 27 Notes for cancellation. Upon exchanging the TLRY 27 Notes, a portion of the settlement consideration was allocated to the equity component of the instrument and was recognized as a $1,158 reduction of additional paid-in capital. Following consummation of the exchange, the number of outstanding Borrowed Shares of Common Stock was reduced by approximately 1,209,696 shares which were then returned as Treasury Stock, see Note 12 (Convertible debentures payable).

 

c)

10,576,799 shares of Common Stock in connection with the exercise of previously awarded stock-based compensation awards.

 

During the three months ended August 31, 2025, the Company granted 44,802,378 time-based Restricted Stock Units (“RSUs”), and nil performance-based RSUs.

 

During the fiscal year ended May 31, 2024, the Company issued 7,566,146 performance-based RSUs. These RSUs were not considered granted for accounting purposes at the time of issuance, as the performance conditions had not yet been established or approved and no amounts have been recorded within the Consolidated Statement of Income (Loss). 

 

The Company's total stock-based compensation expense from RSUs incurred for the three months ended August 31, 2025 was $5,052, compared to $6,917 for the three months ended  August 31, 2024, respectively.