Beverages-to-cannabis business Tilray Brands has announced the implementation of a reverse stock split of its common stock.

The one-for-ten reverse stock split became effective today (1 December), with shares expected to begin trading on a split-adjusted basis when markets open on 2 December, the company said in a statement.

Following the announcement, Tilray Brands shares were down nearly 21% at close of trading on Friday (28 November).

The reverse stock split had been approved by shareholders in June, though plans to implement it were paused, as the beers and energy drinks maker said at the time it was “exploring all options related to timing of the reverse split as it evaluates timing and stock price”.

Tilray then said one purpose of the transaction was “ensuring compliance” with Nasdaq rules that require listed companies to maintain a minimum bid price of $1.

As well as complying with Nasdaq listing rules, Tilray Brands said the split would better align the number of outstanding shares with “companies of its size and scope” and make the business “more attractive to institutional shareholders”.

The company’s stock has dropped sharply from its 2018 IPO price of $17.

Media speculation in June linked the prolonged slump in Tilray’s share price to broader pressures in the US cannabis market, where some states permit medical and/or recreational use, while the drug remains illegal at federal level. 

However, Tilray Brands, which owns breweries including Atwater, Alpine and Hop Valley, did not mention cannabis industry conditions when it first set out its intention to pursue a reverse split.

In its first quarter ended 31 August, the group booked 5% growth in net revenue, at $210m. Net income in the period reached $1.5m compared to $34.7m net loss it had booked previously.

Net revenue in Tilray's drinks business however was relatively flat, declining 0.5% to $55.7m. Gross profit in this division dipped nearly 7% to $21.3m.

The company booked $821m in net revenue in its full-year results for 2025, growing 4% on the year prior, and increasing 6% to $833.7m on a constant currency basis, but missing its forecasted sales guidance.

In April, Tilray Brands cut its sales forecast for fiscal 2025, citing “adjustments for constant currency and the impacts of the strategic initiatives and SKU rationalisation”. It had reduced its net revenue forecast for the year to $850-900m.