Tilray Brands Inc. (TLRY) will carry out a one‑for‑ten reverse stock split of its common shares, effective at 4:01 p.m. Eastern Time on December 1, 2025. The split will reduce the number of shares outstanding from roughly 1.16 billion to 116 million, and any fractional shares will be paid in cash.
The company says the reverse split is intended to align its share count with comparable peers, attract institutional investors, and lower the costs associated with annual shareholder meetings. It also helps the company meet Nasdaq’s minimum bid‑price requirement after a notice of non‑compliance received on March 25, 2025.
Tilray’s recent financial performance has been challenging. In the third quarter of fiscal 2025, the company reported revenue of $185.8 million and a net loss of $793.5 million. The share count reduction follows a 52‑week low of $0.35 and ongoing regulatory uncertainties in the U.S. cannabis, beverage, and wellness markets. The reverse split does not change the company’s intrinsic value but signals management’s effort to improve liquidity and institutional appeal while addressing compliance and cost considerations.
Investors reacted negatively to the announcement, reflecting concerns about the company’s recent financial performance and the need for a reverse split to meet Nasdaq requirements.
The reverse split will not alter Tilray’s market capitalization or intrinsic value, but it signals management’s attempt to improve liquidity and institutional appeal while addressing compliance and cost considerations.
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