Tilray Shares Tumble After Company Announces 1-For-10 Reverse Stock Split

Tilray Brands Inc (NASDAQ:TLRY) shares are trading lower in Wednesday’s after-hours session after the company announced a reverse stock split.

• TLRY is feeling the pressure from bearish momentum. Get the market research here.

What To Know: After the market close on Wednesday, Tilray said it will implement a one-for-10 reverse stock split of its common stock. The reverse split was approved at the company ‘s special meeting of stockholders in June and is now set to take effect on Dec. 1.

On the effective date, every 10 issued and outstanding shares of Tilray common stock will be automatically combined and converted into one share.

Tilray said the reverse split aims to align the company’s shares outstanding with companies of similar size and scope, make Tilray more attractive to institutional investors and reduce expenditure associated with the company’s annual meetings. The company expects the stock split to result in up to $1 million in cost savings on an annual run rate.

Shares of Tilray will begin trading on a split-adjusted basis when the market opens on Dec. 2.

How To Buy TLRY Stock

By now you're likely curious about how to participate in the market for Tilray — be it to purchase shares or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.

TLRY Price Action: Tilray shares were down 9.72% in after-hours, trading at 93 cents at the time of publication on Wednesday, according to Benzinga Pro.

Read Next:

• 4 Cannabis Stocks Log Momentum Gains Even As Congress Re-Criminalizes Some THC Products In Spending Bill

Photo: T. Schneider via Shutterstock