Cannabis company Tilray Brands proposes a reverse stock split

Cannabis company Tilray Brands Inc. is proposing a reverse stock split for its shares.

Tilray chairman and chief executive Irwin Simon says the reverse split would better align Tilray’s number of shares outstanding with companies of its size and scope, while a higher price per share would ensure compliance with Nasdaq’s continued listing requirements.

The company also expects cost savings from the change, which would reduce the costs associated with its annual meeting.

It is asking its shareholders to approve a plan that would allow a reverse stock split of its common shares at a ratio ranging from 1-to-10 to 1-to-20.

The exact ratio would be determined by the Tilray board of directors if the plan is approved by a shareholder vote set for June 10.

Tilray shares closed down a penny at 66 cents on the Toronto Stock Exchange on Wednesday.