Tilray Shares Face Pressure Amid Regulatory Shift and Reverse Stock Split

Tilray Brands, Inc. saw its shares come under significant selling pressure this week following the execution of a 1-for-10 reverse stock split. The technical maneuver, intended to maintain the company’s Nasdaq listing by boosting its share price, appears to have backfired in the short term, with the stock declining approximately 10% since the split took effect on December 2. Investor sentiment was further dampened by a new regulatory development in the United States that threatens a key area of future growth.

Beyond the market’s typical negative reaction to reverse splits, a substantial fundamental concern emerged from Washington. In November, the U.S. Congress passed legislation that significantly tightens the Read more...