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Investing.com -- Tilray Brands Inc (NASDAQ:TLRY) stock tumbled 12.8% after the cannabis and consumer goods company announced it has applied for an extension to regain compliance with Nasdaq’s listing standards regarding its share price.
The company is evaluating several options to address the situation, including a potential stockholder-approved reverse stock split to maintain its Nasdaq listing. Tilray’s share price has been trading below the $1 minimum required by Nasdaq for continued listing.
CEO Irwin Simon noted that Tilray’s stock has appreciated in recent weeks following President Trump’s review of cannabis rescheduling, which he believes reflects investor confidence in the company’s diversified global platform. However, this recent uptick hasn’t been enough to bring the company into compliance with Nasdaq’s requirements.
"Tilray has multiple options to meet Nasdaq’s requirements, and with this extension request, we are giving the market additional time to demonstrate its confidence in our long-term strategy," Simon stated in the announcement.
Tilray has positioned itself as a leader across cannabis, beverage, and wellness sectors. The company’s request for an extension appears aimed at avoiding immediate drastic measures like a reverse split, which typically consolidates shares to increase the trading price but doesn’t change the underlying value of the company.
The stock’s sharp decline today suggests investors may be concerned about potential share dilution or the implications of regulatory challenges despite the company’s optimistic outlook on cannabis rescheduling developments.
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