Tilray Brands Slides as Company Confirms 1-for-10 Reverse Stock Split

Tilray Brands (TLRY) saw its shares drop 14% after announcing it will move forward with a 1-for-10 reverse stock split, effective December 1st. Shares will begin trading on a split-adjusted basis on December 2nd under the same ticker symbol.

Key Details

Reverse split ratio: 1-for-10
Effective date: December 1
Split-adjusted trading begins: December 2
Ticker remains: TLRY

Why Tilray Is Doing This

The company said the move is designed to:

Reduce total outstanding shares from 1.16B → ~116M
Bring its capital structure in line with industry peers
Increase its attractiveness to institutional investors
Lower administrative and processing costs for annual shareholder meetings

Shareholder Approval

The reverse split was previously approved by Tilray shareholders in June, giving the company authority to implement the change at its discretion.

Handling of Fractional Shares

Any fractional shares created during the split will be settled in cash, ensuring shareholders receive full value without holding partial shares.

Market Reaction

Investors reacted sharply, pushing the stock down double digits as reverse splits are often interpreted as a sign of financial pressure or attempts to maintain compliance with exchange listing requirements.