MW Tilray's stock has been below $1 for months. Here's how it plans to fix that.

By Steve Gelsi

Canadian cannabis company is one of several with stocks trading for just pennies

Tilray Brands Inc. said Thursday it's planning to seek shareholder approval for a reverse stock split as dramatic as 20-for-1, in a move aimed at boosting its share price back above the $1 mark.

Tilray Brands Inc.'s stock $(TLRY)$ hasn't traded at above $1 since February.

The stock rose 1% to 48 cents on Thursday morning, for a market capitalization of $479 million.

"A higher price per share would ensure compliance with Nasdaq's continued-listing requirements and [would place] Tilray in a position to continue executing on our strategic plans," Chief Executive Irwin Simons said in a statement.

Tilray said it would hold a shareholder meeting on June 10 to authorize a reverse stock split in which current shareholders would exchange 10 to 20 shares for a single share, with the final ratio to be determined by the board of directors.

"We expect this decision to aid in the company's efforts to stabilize trading levels, attract and retain institutional shareholders, and decrease our cost structure by over $1 million on an annual run-rate basis," Simon said.

The cannabis company that sells marijuana products in Canada, as well as beer in the U.S., is one of several cannabis companies with share prices that have fallen below $1 as investor interest in cannabis stocks has cooled.

Those include Ayr Wellness (AYRWF), which is now trading at 16 cents a share; Curaleaf Holdings (CURLF), at 84 cents a share; TerrAscend Corp. (TSNDF), at 26 cents a share; Cresco Labs (CRLBF), at 61 cents a share; and Verano Holdings Corp. (VRNOF), which is at 60 cents a share.

Tilray's plan for a reverse split came after Canopy Growth Corp. $(CGC.AU)$ carried out a 10-for-1 reverse split in December 2023. At last check, that stock was trading at $1.17 after falling 57% this year.

While cannabis companies have been making some strides in U.S. states, the pace of growth has slowed, while any federal move toward marijuana legalization remains frozen.

Most institutional investors in the U.S. remain prohibited from investing in plant-touching businesses because of pot's Schedule I status under federal law.

The leaves a pool of retail investors to play in cannabis stocks, and absent any more major moves toward legal reform most have kept their distance.

For its part, Tilray remains a healthy business with cash and cash equivalents of more than $248 million at last check. Tilray has reduced its outstanding debt by $76 million so far this year.

-Steve Gelsi

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April 17, 2025 11:03 ET (15:03 GMT)

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