Tilray Inc. (NASDAQ: TLRY) saw its shares plummet by 5.84% during intraday trading on Wednesday, extending a recent downward trend. The decline follows the company's execution of a 1-for-10 reverse stock split, which was implemented to optimize its capital structure and attract institutional investors.
The reverse stock split, which took effect on Tuesday, consolidated every 10 outstanding shares into a single share, reducing the total outstanding shares from approximately 1.16 billion to around 116 million. Management estimates this move could save up to $1 million annually in administrative costs. However, the restructuring has led to increased volatility, with the stock continuing to slide post-split.
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