What Does Tilray’s Reverse Stock Split Mean?
On Monday’s Trade To Black livestream, Shadd Dales and Anthony Varrell returned from the Thanksgiving holiday break with major industry updates ahead of MJBizCon in Las Vegas. The podcast is joined by special guest Michael Bronstein, President of ATACH (American Trade Association for Cannabis and Hemp), to break down three of the biggest storylines shaking up the cannabis industry: Tilray’s reverse split, the new sheriff in charge of California cannabis, and the US Supreme Court’s pending review of key cannabis cases.
We start with Tilray Brands’ (TLRY) latest 1-for-10 reverse stock split, reducing its share count from 1.16 billion to 116 million. Why did it happened, what does it mean for share structure, exchange compliance, ETF inclusion, and broader sentiment toward cannabis equities? Anthony and Shadd walk through how this move fits into the consolidation trend across the sector, while Michael adds the policy and institutional lens on how capital markets are treating US vs Canadian operators.
While the market reacted negatively, the move could be strategically bullish and geared toward institutional investors rather than simple NASDAQ compliance. Both hosts reiterated that any federal reform announcement—rumored for early 2024—could trigger substantial upside for high-liquidity names like Tilray.
In a December 12 Supreme Court conference, justices will privately discuss whether to hear Gonzales v. Wright, a case challenging the federal government’s application of the Controlled Substances Act to state-legal cannabis. Michael Bronstein, president of ATACH, emphasized the significance of conservative organizations—including the Cato Institute—filing amicus briefs supporting review. He noted that federal behavior, including HHS’ rescheduling recommendation and congressional funding riders protecting state medical programs, already signals a shift away from strict Schedule I interpretation.
The discussion heads into implications for 280E, intrastate protections, and whether a favorable ruling could force Congress to act on national regulatory standards. While the Court won’t legislate, a decision undermining federal prohibition would potentially accelerate state legalization and pressure lawmakers to establish a coherent federal framework.
Tune in for all the chatter, including state-level developments like Texas’ medical expansion petition process, California’s appointment of new DCC director Clint Kellum amid regulatory failures, and Virginia’s forthcoming adult-use framework tied to a 2026 launch. We’ll also examine the latest in international news as High Tide announced its first Can Cabana–branded retail store in Berlin—selling accessories, not cannabis.
