Tilray plunges ahead of 1-for-10 reverse stock split. Here’s what you need to know

Nearly six months ago, Tilray Brands ( TLRY ) shareholders approved a 1-for-10 reverse stock split. Now the cannabis company has set its go-live date, and shares are falling.

The stock lost more than a fifth of its value in Friday’s shortened trading session, bringing its losses in 2025 to nearly 40%. (Read our daily markets coverage here.)

Tilray Brands, which describes itself as a “global lifestyle and consumer packaged goods company at the forefront of the global cannabis, beverage and health industries,” announced late Wednesday that the reverse split will take effect after markets close next Monday, December 1. When the markets open on Tuesday, its shares will begin trading on a split-adjusted basis under the same ticker symbol, but with a new CUSIP number, 88688T209.

Starting Tuesday, every 10 shares of common stock will automatically be combined into one share, reducing the number of shares outstanding from about 1.16 billion shares to 116 million. Tilray said no fractional shares will be issued.

Tilray said it expects the change, approved by Tilray shareholders at a special meeting in June, could make its stock “more attractive to institutional shareholders” and reduce expenses associated with its annual meeting, “resulting in cost savings of up to $1 million on an annual run rate basis.”

However, investors typically view reverse stock splits as a bearish signal, because they may indicate a lack of confidence in the stock’s upward trajectory. Tilray shares were up nearly 60% for the year through Oct. 9, two months after President Donald Trump said the White House would “look at reclassifying” marijuana, but they have since fallen amid regulatory uncertainty as no final rule has been adopted.