Investors are not taking kindly to Tilray's (TLRY) latest effort at raising capital. The company's stock saw a steep decline of 32% on Friday after announcing a new share issue.

The company is offering 7.25 million shares of its common stock plus 11.75 million warrants to purchase same for those who don't want to opt for the shares just now. Each stock or warrant comes with one "accompanying" warrant.

Smoke emanating from a cannabis flower.

Image source: Getty Images.

The price is $4.76 per share/warrant plus accompanying warrant, quite some distance below the previous day's closing price for the stock -- hence the 32% decline.

Both forms of warrant grant the holder the right to purchase one share of class 2 stock and can be exercised starting six months from issuance. They will be valid for five years. Each confers the right to buy one share of Tilray at a price of $5.95.

Tilray said it will utilize the resulting proceeds for "general corporate purposes." As is common for companies issuing new shares, Tilray did not get any more specific. The marijuana company said it expects the issue to close on Tuesday, March 17.

Share issues are relatively typical in the marijuana industry, as many companies in the sector habitually post losses. Lately, when issuing stock, some companies have offered "sweeteners" like Tilray's accompanying warrants.

It's not been a good month for the company. At the beginning of March, Tilray released its Q4 results, which revealed an 8% quarter-over-quarter revenue decline and a much deeper loss on the bottom line (of more than $219 million).