Tilray Inc. (TLRY) saw its shares plummet by 16.57% in pre-market trading on Friday, reflecting significant investor reaction to the company's latest corporate action.

The sharp decline followed Tilray's announcement of a 1-for-10 reverse stock split, which will reduce its outstanding shares from approximately 1.16 billion to 116 million. The reverse split is set to take effect on December 1, with trading on a split-adjusted basis beginning December 2. While the company stated the move aims to make its shares more attractive to institutional investors and reduce annual costs by up to $1 million, the market responded negatively in the short term.

Reverse stock splits often lead to volatility as investors reassess their positions, and Tilray's pre-market drop underscores the immediate market skepticism toward the move.