Tilray Brands (TLRY) Stock Plunges 16% After Reverse Split Announcement

TLDR

• Tilray Brands (TLRY) stock dropped over 16% in after-hours trading Wednesday after announcing a 1-for-10 reverse stock split effective December 1
• The reverse split will reduce outstanding shares from 1.16 billion to 116 million, with split-adjusted trading starting December 2
• Shareholders approved the split in June 2025, authorizing a ratio between 1-for-10 and 1-for-20
• The company expects to save up to $1 million annually in shareholder meeting costs
• TLRY closed regular trading up 4.76% at $1.03 before the after-hours decline

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Tilray Brands shares tumbled more than 16% in after-hours trading Wednesday. The cannabis company announced its previously approved reverse stock split will take effect next week.

Tilray Brands, Inc., TLRY

TLRY closed regular trading at $1.03, up 4.76%. The stock then dropped to $0.9494 in extended trading following the reverse split announcement.

The company will execute a 1-for-10 reverse stock split on December 1, 2025. Trading on a split-adjusted basis begins December 2.

Every ten existing shares will consolidate into one share. Outstanding shares will decrease from approximately 1.16 billion to 116 million.

Shareholders maintain the same proportional ownership after the split. The company’s overall market value remains unchanged.

Shareholder Approval and Rationale

Tilray shareholders approved the reverse split at a special meeting on June 10, 2025. The board received authorization for a ratio between 1-for-10 and 1-for-20.

Directors selected the 1-for-10 ratio for implementation. No fractional shares will be issued in the process.

The company aims to align its share structure with similar-sized competitors. Management expects the move to attract institutional investors who typically avoid low-priced stocks.

Tilray also projects cost savings from the reverse split. Annual shareholder meeting expenses could decrease by up to $1 million.

The stock will trade under a new CUSIP number following the adjustment. Pacific Stock Transfer will handle settlement procedures for direct shareholders.

Trading Dynamics and Investor Impact

Brokerage systems will automatically update positions after the split. Shareholders holding stock through banks or brokers need not take any action.

Cash compensation will apply to holders entitled to fractional shares. This ensures smooth conversion during the transition.

The higher per-share price may improve market perception. Low-priced stocks sometimes carry negative associations among investors.

Short-term volatility is possible as the market digests the change. Percentage ownership remains constant unless fractional adjustments apply.

Wall Street analysts maintain a Moderate Buy consensus rating on TLRY. Two analysts rate the stock a Buy, while one has a Sell rating.

The average price target stands at $1.95 per share. This represents potential upside of 89.32% from current levels.

Regular trading saw gains before the announcement. Bloomberg reported that the Centers for Medicare & Medicaid Services is planning to make some Medicare patients eligible for CBD coverage.

Tilray operates in North America, Europe, Australia, and Latin America. The company’s portfolio includes cannabis, beverages, hemp-based food, and wellness products.

The business supports over 40 brands across more than 20 countries. Split-adjusted trading begins December 2, 2025, under the same TLRY ticker.

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