Tilray Brands Inc. (TLRY) saw its stock plummet 5.60% in pre-market trading on Thursday, following the company's announcement that it has requested additional time from Nasdaq to meet the minimum share price requirement for continued listing. The cannabis company also revealed it is considering options such as a reverse stock split to maintain its listing status.
In March, Tilray had received a notification from Nasdaq about its non-compliance with the stock exchange's $1 minimum bid price requirement. The company's CEO, Irwin Simon, stated on Thursday that Tilray intends to use the extension period to allow the market to respond to its strategy. This move comes as part of Tilray's efforts to address its capital structure and maintain adherence to continued listing requirements.
The potential for a reverse stock split has likely spooked investors, as such moves are often viewed negatively due to the implied dilution of existing shares. However, Tilray maintains that this strategy aims to boost the company's share price and reflect investors' confidence in its diversified global platform and growth potential in the cannabis, beverage, and wellness sectors. As the market digests this news, investors will be closely watching Tilray's next moves and their impact on the company's stock performance.