Tilray Inc. plans to offer $400 million of convertible senior notes due 2023 in a private placement to institutional investors.

The Nanaimo, British Columbia-based medical cannabis producer plans to use the net proceeds for working capital, future acquisitions and general corporate purposes.

Tilray also intends to use the funds to repay about $9.1 million worth of existing mortgage related to its facility in Nanaimo.

The company intends to grant the initial purchasers of the notes an option to buy up to an additional $60 million aggregate principal amount of notes.

The notes will be convertible into cash or shares of Tilray's class 2 common stock or a combination of both at the company's discretion.

The Canadian cannabis company went public earlier in the year.