Tilray Brands Inc (NASDAQ:TLRY) stock fell 12.8% following the company’s announcement that it has requested an extension to regain compliance with Nasdaq’s minimum share price rules.
The cannabis and consumer goods company is considering several options, including a potential stockholder-approved reverse stock split, to maintain its Nasdaq listing. Tilray’s shares have been trading below the $1 threshold required by Nasdaq for continued listing.
CEO Irwin Simon noted that recent gains in Tilray’s stock, fueled by President Trump’s review of cannabis rescheduling, reflect investor confidence in the company’s diversified global platform. However, the uptick has not yet restored compliance with Nasdaq standards.
“Tilray has multiple options to meet Nasdaq’s requirements, and with this extension request, we are giving the market additional time to demonstrate its confidence in our long-term strategy,” Simon said.
Tilray has established itself as a leader in cannabis, beverages, and wellness. The extension request appears intended to avoid immediate measures such as a reverse stock split, which consolidates shares to raise the trading price without altering the company’s underlying value.
The stock’s steep decline indicates investor concern about potential share dilution and regulatory challenges, despite the company’s positive outlook on developments in cannabis rescheduling.
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