TLDR
- Tilray (TLRY) shares plunged over 16% in after-hours trading after confirming December 1 reverse split implementation
- The 1-for-10 consolidation reduces outstanding shares from 1.16 billion to 116 million
- Shareholders approved the split range in June, with the board selecting the 1-for-10 ratio
- Company expects annual cost savings of up to $1 million from reduced shareholder meeting expenses
- Split-adjusted trading begins December 2, with no action required from shareholders
Tilray Brands watched its stock price collapse more than 16% in after-hours trading Wednesday. The cannabis company confirmed its reverse stock split moves forward December 1.
The stock closed regular hours at $1.03, gaining 4.76%. It then fell to $0.9494 in extended trading after the announcement.
Tilray will execute a 1-for-10 reverse stock split effective December 1, 2025. Every ten existing shares become one share. The outstanding share count drops from roughly 1.16 billion to 116 million.
Trading on a split-adjusted basis starts December 2. The stock keeps its TLRY ticker symbol but receives a new CUSIP number.
Shareholders voted on the reverse split during a June 10 special meeting. They authorized a ratio between 1-for-10 and 1-for-20. The board chose the 1-for-10 option.
What Shareholders Need to Know
Proportional ownership stays the same for shareholders. The company’s total market value doesn’t change from the split itself.
No fractional shares will be issued. Shareholders entitled to fractions receive cash compensation instead. Pacific Stock Transfer handles the process for direct shareholders.
Investors holding shares through brokers don’t need to take action. Brokerage systems automatically update positions after the split.
The company aims to align its share structure with competitors of similar size. Management believes the higher per-share price attracts institutional investors.
Low-priced stocks often face perception issues in the market. The reverse split addresses this by increasing the nominal share price.
Cost Savings and Strategic Goals
Tilray projects annual savings up to $1 million on shareholder meeting costs. The reduced share count lowers administrative expenses.
The move is part of broader corporate restructuring efforts. Management frames it as strengthening the company’s market position.
Wall Street maintains a Moderate Buy rating on the stock. Two analysts recommend buying, while one rates it a Sell.
The average analyst price target sits at $1.95 per share. This implies potential upside of 89.32% from current levels.
Before the reverse split news, TLRY gained on positive regulatory developments. Bloomberg reported the Centers for Medicare & Medicaid Services plans to make some Medicare patients eligible for CBD coverage.
Tilray operates across multiple continents including North America, Europe, Australia, and Latin America. The company manages over 40 brands in more than 20 countries.
Its product portfolio spans cannabis, alcoholic beverages, hemp-based foods, and wellness items. The business focuses on consumer-facing brands and lifestyle products.
Short-term volatility may continue as the market processes the reverse split. The structural change takes effect when markets close November 30, with adjusted trading starting the following Monday.
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