Tilray Brands Inc. (TLRY) is having a rough Friday, with shares dropping sharply as investors digest news that the company's previously announced reverse stock split is actually happening. The global cannabis and consumer packaged goods company confirmed the 1-for-10 consolidation will take effect on December 1, with the newly adjusted shares hitting the market when trading opens December 2.

What's Happening: This isn't exactly a surprise move—shareholders approved it back in June—but the reality of a reverse split tends to spook investors regardless of the advance warning. The mechanics are straightforward: Tilray's outstanding common stock will shrink from approximately 1.16 billion shares down to roughly 116 million. Your ten shares become one, though the total value (in theory) stays the same.

Here's the corporate reasoning: Management believes the reverse split will make Tilray more attractive to institutional investors while aligning its capital structure with companies of similar size. There's also a practical benefit—the company expects to save up to $1 million annually in administrative costs. Not exactly a game-changing amount for a billion-dollar operation, but savings are savings.

One detail worth noting: No fractional shares will be issued. If you end up with a fractional interest after the split, you'll get a cash payment instead.

The Market's Take: Investors aren't thrilled. Tilray shares were down nearly 20% at 83 cents as of Friday's trading session, extending what's already been a challenging period for the stock. Market data shows negative price trends across short, medium, and long-term horizons, alongside a low growth score of 25.65—not exactly inspiring confidence.

Reverse splits often carry a stigma in the market, viewed as a desperate measure to boost a falling share price or meet exchange listing requirements. Whether that's fair or not, the market tends to vote with its feet, and Friday's price action suggests skepticism about Tilray's path forward.