- Tilray Brands (TLRY, Financial) plans a reverse stock split ranging from 1-to-10 to 1-to-20.
- The decision aims to maintain compliance with Nasdaq listing requirements.
- Expected annual cost savings from the reverse split exceed $1 million.
Tilray Brands, Inc. (TLRY) has announced a special meeting for stockholders scheduled on June 10, 2025, to vote on a proposed reverse stock split. The split ratio, which will range between 1-to-10 and 1-to-20, will be finalized by the company’s Board of Directors.
The initiative aims to align TLRY's outstanding shares with those of similarly sized companies and ensure the company meets Nasdaq’s continued listing requirements. According to CEO Irwin D. Simon, a successful reverse stock split would stabilize trading levels, broaden institutional investor interest, and reduce annual costs by over $1 million.
TLRY's financial health is underscored by a $76 million debt reduction in fiscal 2025, achieving a net debt to trailing twelve-months Adjusted EBITDA below 1.0x. As of February 28, 2025, the company's cash and marketable securities exceeded $248 million, providing financial stability and supporting potential strategic acquisitions.
While reverse stock splits can be perceived negatively, often seen as a last resort for struggling firms, Tilray's financial restructuring appears to be a proactive measure to strengthen its market position and attract more institutional investors. Stockholders can access more information and participate in the upcoming meeting through the investor page on Tilray's website.
