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The company has 180 calendar days to meet Nasdaq's minimum bid price rule. Its stock must close at or above $1.00 per share for at least 10 consecutive business days before Sept. 21.
Tilray Brands, Inc. faces a regulatory reckoning: regain Nasdaq’s minimum bid price requirements soon or possibly get delisted from the exchange.
The retail trading community on Stocktwits believes the cannabis and beer company will soon overcome this hurdle.
Leamington, Canada-based Tilray received a non-compliance notice from Nasdaq on Tuesday after its stock failed to maintain the exchange’s $1 minimum closing bid price requirement for 30 consecutive business days.
Shares of Tilray have lost more than half their value this year, as cannabis-linked stocks continue to struggle amid stalled federal legalization efforts.
The company has 180 calendar days to meet Nasdaq's minimum bid price rule. Its stock must close at or above $1.00 per share for at least 10 consecutive business days before Sept. 21.
If the company fails, it may transfer to the Nasdaq Capital Market for another 180-day extension — provided it meets other listing requirements and notifies Nasdaq of its plan to fix the issue, possibly through a reverse stock split.
If Nasdaq still determines the company cannot regain compliance, its stock will face delisting.
On Stocktwits, sentiment for Tilray ended on a slightly higher ‘bullish’ level on Wednesday amid a 45% jump in message volume.
One user expressed hopes of Nasdaq being lenient with its process and said there were “zero” delisting fears because, with the extension, Tilray has until April 2026 to regain compliance.
Another user said the company is “vertically scaled to be dominant from flower to drinks to pharma,” pointing to its products being available on the multinational supermarket chain Whole Foods, which is owned by Amazon.com.
Several retail investors on Stocktwits hope Tilray does not resort to a reverse stock split.
In January, Tilray’s stock was dealt a blow after the company reported disappointing quarterly results and projected a $20 million revenue blow for 2025 from cutting back on certain alcohol beverage brands.
Meanwhile, the company said Wednesday that the Massachusetts Superior Court dismissed a lawsuit filed by a shareholder against the company and its subsidiary Hexo.
The plaintiff claimed Tilray failed to inform shareholders about Hexo’s corporate actions in late 2022 and its 2023 acquisition, allegedly causing financial losses. He sought nearly $8 million in damages.
According to Koyfin data, short interest on Tilray has shot up from 12.7% at the start of the year to 17.3% as of the last week.
The stock trades at a significant 180% discount to Wall Street’s average price target of $1.83. Out of 13 analysts covering it, nine rate it ‘hold’ and four ‘buy.’
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