Tilray Brands, Inc. has announced a proposed reverse stock split and a corresponding special meeting of stockholders to be held on June 10, 2025. The purpose of the reverse stock split is to align the company's number of shares outstanding with companies of a similar size and scope. The exact ratio of the reverse stock split will be determined by the board of directors, with the aim of ensuring compliance with NASDAQ's continued listing requirements and to stabilize trading levels.
The company expects the reverse stock split to result in cost savings, reducing expenditures associated with its annual meeting. It anticipates a decrease in its cost structure by over $1 million on an annual run rate basis.
In terms of financial performance, Tilray has reduced its total debt outstanding by approximately $76 million during the fiscal year 2025 to date. As a result, the net debt to trailing twelve-months adjusted EBITDA is less than 1.0x. Additionally, 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, providing the company with financial strength and flexibility to pursue strategic opportunities and accretive acquisitions.
The company's chairman and CEO, Irwin D. Simon, expressed confidence in the company's strategy and team to deliver long-term value for its shareholder base despite the proposed reverse stock split.
Tilray Brands, Inc. is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America. It supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages. Following these announcements, the company's shares moved -6.5%, and are now trading at a price of $0.44. For more information, read the company's full 8-K submission here.
