What's Going On With Tilray Brands Stock? The Blunt Truth

Tilray Brands, Inc. TLRY shares are trading lower Monday. Kerrisdale Capital issued a short report on the company. Here's a look at what's going on.

What To Know:

Kerrisdale Capital stated that it is short shares of Tilray and released a report titled, "The Blunt Truth."

Kerrisdale Capital's report claims that Tilray's cash flow and other financial metrics are skewed due to the payment of debts with shares of stock instead of cash which has led to dilution of value for shareholders. 

The report also stated that Tilray investors have overreacted to the recent marijuana rescheduling developments because Tilray is a Canadian company that would not benefit from a change in U.S. regulations, though its Americans competitors would. 

Kerrisdale Capital gave a price target of 89 cents for TLRY shares, representing a downside potential of 70%. 

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TLRY Price Action: According to Benzinga Pro, Tilray Brands shares are down nearly 6% at $2.77 at the time of publication.

Image: Eugenio Cuppone from Pixabay