Tilray Brands Stock Declines Ahead of Reverse Stock Split

Tilray Brands saw its stock drop significantly on Friday, just before a 10-for-1 reverse stock split is set to occur after the market closes next Monday, December 1.

• A reverse stock split allows a company to reduce the number of shares available, which in turn increases the price of each share proportionally.

About six months ago, shareholders of Tilray Brands approved this 1/10 reverse stock split. Recently, many cannabis companies have been announcing their effective dates, leading to declining stock prices.

On Friday, Tilray’s stock lost more than 20% of its value during a shortened trading day, pushing its total losses for 2025 to nearly 40%.

Tilray, which markets itself as a leader in the global cannabis, beverage, and wellness sectors, shared details late Wednesday about the impending reverse split. When trading resumes on Tuesday, the company’s stock will begin at an adjusted price but under a new CUSIP number, 88688T209.

Starting Tuesday, every ten shares will consolidate into a single share, reducing the overall shares from about 1.16 billion to 116 million. Tilray has indicated that no fractional shares will be issued as a result of this change.

This reverse stock split is primarily a technique to make the company’s stock more appealing to institutional investors while also cutting costs tied to annual meetings, which Tilray anticipates will save up to $1 million annually.

Nevertheless, many investors tend to view reverse stock splits as negative signals. They often suggest there may be doubts about the stock’s potential for growth. Although there was some optimism regarding regulatory changes under President Donald Trump, uncertainty has crept in, as no final rules have been established yet.