Tilray Brands, Inc. says that the vote to implement a reverse stock split of the company’s common stock passed at a special meeting of stockholders. 

The vote was for an amendment of Tilray’s Fifth Amended and Restated Certificate of Incorporation, to implement a reverse stock split of the Company’s common stock at a ratio ranging from 1-to-10 to 1-to-20, a reverse stock split.

The company also announced a pause on the implementation of the newly authorized reverse stock split while further exploring all options related to the timing of the reverse split as it evaluates timing and stock price.

If implemented, Tilray expects the reverse stock split will achieve several objectives and believes it would be well-positioned for strategic opportunities and acquisitions. Those objectives include:

• Ensuring compliance with the Nasdaq Global Select Market’s continued listing requirements
• Aligning the Company’s number of shares outstanding with companies of its size and scope
• Making Tilray more attractive to institutional shareholders
• Reducing expenditures associated with Tilray’s Annual Meeting of Stockholders, resulting in up to $1 million in cost savings on an annual run rate basis

Tilray Brands announced the proposed reverse stock split and corresponding special meeting of stockholders in April.

In a reverse stock split, shares of corporate stock are combined to reduce the number of outstanding shares, resulting in a smaller number of proportionally more valuable shares.

On March 25, 2025, Tilray Brands, Inc. received written notice from the Nasdaq Listing Qualifications Department notifying the company that it is not in compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Global Select Market.

The company had 180 calendar days from the day of the notice to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of ten consecutive business days before September 21, 2025.

As of the most recent quarter ended February 28, 2025, Tilray’s balance sheet had a cash and marketable securities balance of over $248 million, which the company says provides it with financial strength and flexibility to pursue strategic opportunities and accretive acquisitions.

Tilray Brands, Inc. reported net revenue of $185.8 million in the three months ended February 28, 2025 (Q3 2025) and gross profit of $52 million, but a comprehensive loss of $799 million (all figures in US dollars).

Also on April 17, the company announced it was launching its cannabis edibles into the Australian medical cannabis market. The Good Supply Pastilles are Tilray Medical’s first medical cannabis edible offering in the country, providing patients with a sugar-free and vegan-friendly treatment option.

Tilray Brands, Inc. recently transitioned the cultivation of its flagship brand and strain, Good Supply Jean Guy, to its production facility in Masson-Angers, Québec. The facility employs over 100 residents of Québec and produces more than 12 tonnes of cannabis annually.

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