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NEW YORK/LEAMINGTON - Tilray Brands, Inc. (NASDAQ:TLRY; TSX:TLRY) announced Tuesday that stockholders have approved an amendment to implement a reverse stock split at a ratio between 1-to-10 and 1-to-20, though the company has paused its implementation while evaluating timing options. The announcement comes as the stock trades near $0.42, down roughly 77% over the past year according to InvestingPro data.
The cannabis and consumer goods company said it would delay executing the stock split as it "evaluates timing and stock price," according to a statement based on a press release.
If implemented, the reverse split aims to ensure compliance with Nasdaq Global Select Market’s continued listing requirements, align shares outstanding with similarly sized companies, attract institutional shareholders, and reduce annual meeting expenditures by up to $1 million annually.
Tilray reported reducing its total debt by approximately $76 million in the fiscal quarter ended February 28, 2025. The company stated its net debt to trailing twelve-months Adjusted EBITDA is now less than 1.0x.
The company’s balance sheet showed approximately $250 million in cash and marketable securities as of the last fiscal quarter, which Tilray indicated provides financial flexibility for strategic opportunities and potential acquisitions.
Tilray Brands operates in multiple sectors including cannabis, beverages, and wellness across markets in Canada, the United States, Europe, Australia, and Latin America. The company maintains a portfolio of over 40 brands across more than 20 countries.
The announcement did not specify when a decision regarding the timing of the reverse stock split implementation would be made.
In other recent news, Tilray Inc. reported its third-quarter 2025 financial results, revealing a significant revenue miss and a larger-than-expected net loss. The company’s earnings per share came in at -$0.87, well below the forecasted -$0.0433, with revenue at $185.78 million against an anticipated $213.56 million. Tilray has revised its fiscal 2025 revenue guidance to a range of $850-900 million. In a strategic move, Tilray announced plans for a reverse stock split to maintain its Nasdaq listing, aiming to stabilize trading levels and reduce annual costs by over $1 million. The company has also made strides in its financial structure, reducing total debt by approximately $76 million during the fiscal year 2025.
Analyst firms have adjusted their perspectives on Tilray, with Needham reducing its price target to $20 while maintaining a Buy rating, and Jefferies lowering its target to $1.50, also with a Buy recommendation. These adjustments reflect the company’s strategic focus on profitability over immediate revenue growth, as well as challenges in its beer market performance. Despite the setbacks, Tilray continues to lead in the global cannabis market and has a strong presence in the US craft beer sector, which provides a stable source of cash flow.
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