Latest news with #TilrayBrands'
Yahoo
2 days ago
- Business
- Yahoo
Tilray Brands pauses stock-split plan despite shareholder approval
Beverages-to-cannabis business Tilray Brands has 'paused' plans to reduce the number of market-traded shares as the company assesses its options. While Nasdaq-listed Tilray Brands said in a statement yesterday (10 June) that the reverse stock split has been approved by its shareholders, the North American business is holding back from proceeding. The beers and energy drinks maker said it was 'exploring all options related to timing of the reverse split as it evaluates timing and stock price'. Tilray Brands' shares have dived since the company went public in 2018 and were trading at 42 US cents yesterday, compared to the IPO price of $17. One of the reasons cited yesterday by New York-headquartered Tilray Brands for the stock split was 'ensuring compliance' with Nasdaq listing rules, which require traded companies to maintain a minimum bid price of $1. Media speculation suggests the reason for the shares' collapse is linked more with the US cannabis industry, where some states have legalised its use for medicinal and/or recreational purposes but it is not legal at the federal level. The state of Texas is now moving to ban the use of THC products, while there is some doubt as to whether President Donald Trump will legalise pot. Cannabis use is legal in Canada, where Tilray Brands operates out of Leamington in Ontario. Bloomberg reported that the pessimism around cannabis use is evident in what the news agency said was the largest exchange-traded fund tracking the legal weed industry. The AdvisorShares Pure US Cannabis ETF, traded at around $2.37, down 96% from the closing high of $55.05 in February 2021, Bloomberg said. It quoted Roth Capital Partners analyst Bill Kirk as saying in an interview: 'There's been this carrot that's been dangling in front of this industry for so long, and it's been a mirage. If the carrot's there, it's rotten at this point. No one's chasing it anymore, no one believes it's going to come to pass.' Tilray Brands, which owns a slate of breweries such as Atwater, Alpine and Hop Valley, made no mention of the cannabis industry yesterday as it seeks to purse a reverse stock split in a range of 1 for ten to 1 for 20 shares. 'Upon implementation of the reverse stock split, the company believes it would be well positioned for strategic opportunities and acquisitions given its strong balance sheet,' said the statement. 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'. However, Bloomberg pointed out that Tilray Brands had a market capitalisation of almost $20bn in 2018 when it went public but that is now less than $500m. Meanwhile, Tilray Brands cut its sales forecast for fiscal 2025 in April, citing 'adjustments for constant currency and the impacts of the strategic initiatives and SKU rationalisation'. In January, the business announced plans to cut more than 300 SKUs as part of a wider programme dubbed Project 420 through which Tilray Brands was looking to find synergies to boost the profitability of its drinks division. The Hi*Ball Energy drinks producer lowered its revenue guidance to $850m-$900m, from $950m to $1bn previously. "Tilray Brands pauses stock-split plan despite shareholder approval" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-04-2025
- Business
- Yahoo
Tilray Brands (NasdaqGS:TLRY) Reports Third-Quarter Losses
Tilray Brands reported significant losses in its third-quarter results, with sales declining slightly and net loss widening considerably compared to the previous year. The company also received a Nasdaq compliance notice regarding its share price, which must stay above $1 to maintain its listing. These events may have contributed to the 18% decline in its stock price over the last week, countering the broader market's 5% rise. Despite revised revenue guidance suggesting potential future improvements, the immediate financial challenges seemed to weigh more heavily on investor sentiment during this period. We've identified 2 risks for Tilray Brands that you should be aware of. AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Over the past year, Tilray Brands' (NasdaqGS:TLRY) total shareholder return has decreased by 73.22%, significantly underperforming the broader US market, which saw a 3.6% rise, and the US Pharmaceuticals industry, which fell by 8.6%. This decline reflects the underlying challenges highlighted in their recent earnings report, including a substantial widening of net losses and a slight dip in sales. The company's revenue forecast of US$850 million to US$950 million for FY 2025 suggests a cautious optimism, yet the widening net losses remain a considerable concern. The share price adjustment also responds to Tilray receiving a Nasdaq compliance notice due to its current trading price below the US$1 minimum bid requirement, with a deadline of September 21, 2025, for compliance. With the stock trading at 61.5% below the consensus analyst fair value estimate, and a target price significantly higher than the present share price, there remains distinct market skepticism regarding near-term prospects. Despite these challenges, the company's strategic initiatives, like product innovations and expanded distribution, may potentially improve future performance metrics if successfully executed. Our valuation report here indicates Tilray Brands may be undervalued. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:TLRY. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
