Tilray Brands Announces Reverse Stock Split, Shares Drop 16% in After-Hours Trading
Tilray Brands (TLRY) shares plummeted more than 16% in extended trading Wednesday following the announcement of a 1-for-10 reverse stock split. The cannabis producer's stock closed regular trading at $1.03, up 4.76%, before tumbling to $0.9494 after hours.
The reverse split, approved by shareholders in June 2025, will take effect December 1. Outstanding shares will shrink from approximately 1.16 billion to 116 million, with split-adjusted trading commencing December 2. While the MOVE maintains proportional ownership and market capitalization, it reflects ongoing challenges for the cannabis sector.
Tilray anticipates saving up to $1 million annually in shareholder meeting costs through the consolidation. The board had previously authorized a split ratio between 1-for-10 and 1-for-20, opting for the less aggressive end of the spectrum.
