Shares of Tilray Brands (TLRY) dropped more than 16% in after-hours trading on Wednesday after the company announced that a previously approved 1-for-10 reverse stock split will take effect next week.
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For context, Tilray Brands produces and distributes cannabis, hemp-based foods, and alcoholic beverages across multiple markets. In the previous session, TLRY stock rose nearly 5% after Bloomberg reported that the Centers for Medicare & Medicaid Services (CMS), which runs the Medicare program, is planning an initiative to make some U.S. Medicare patients eligible for CBD (cannabidiol) coverage.
Tilray to Execute Reverse Stock Split on December 1
Tilray announced a 1-for-10 reverse stock split of its common stock, effective December 1, 2025, with trading on a split-adjusted basis starting December 2. The move will reduce Tilray’s outstanding shares from about 1.16 billion to 116 million, with no fractional shares issued, ensuring each shareholder maintains the same proportional ownership.
Tilray shareholders had previously approved the reverse split at a special meeting on June 10, authorizing a ratio between 1-for-10 and 1-for-20. The Board of Directors ultimately chose the 1-for-10 ratio.
Tilray’s reverse stock split aims to align its share count with similar-sized companies, attract institutional investors, and reduce its annual shareholder meeting costs, potentially saving up to $1 million a year.
What Does This Imply for Investors?
For Tilray investors, the 1-for-10 reverse stock split doesn’t change the company’s overall value, but it can have several effects. The higher per-share price may make the stock more appealing to institutional investors while improving market perception, since low-priced stocks sometimes carry a stigma.
Shareholders will maintain the same proportional ownership, though short-term volatility is possible as the market reacts to the split.
Is TLRY a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TLRY stock based on two Buys and one Sell assigned in the past three months. Furthermore, the average Tilray stock price target of $1.95 per share implies an upside of 89.32% from the current level.
