From Yahoo Finance: 2025-06-11 09:10:00

Tilray Brands has paused plans to reduce market-traded shares as it evaluates options, despite shareholder approval for a reverse stock split. Shares have plummeted to 42 US cents from the IPO price of $17, with a need to comply with Nasdaq listing rules. Speculation links the drop to the struggling US cannabis industry.

President Trump’s stance on pot legalization remains uncertain as Texas moves to ban THC products. Tilray Brands, operating from Canada, is experiencing the impact of the industry’s downturn. The AdvisorShares Pure US Cannabis ETF has dropped 96% since February 2021, reflecting widespread industry pessimism. Tilray Brands made no mention of the cannabis industry in its recent actions.

Despite a market capitalization drop from $20bn to less than $500m, Tilray Brands aims to pursue a reverse stock split to position itself for strategic opportunities and acquisitions. The split aims to align with Nasdaq listing rules, attract institutional shareholders, and streamline operations. However, the company has lowered its sales forecast for fiscal 2025 due to strategic adjustments and SKU rationalization efforts.



Read more at Yahoo Finance: Tilray Brands pauses stock-split plan despite shareholder approval