(Updates with the stock price move in the first paragraph and reasons behind the split in the last.)

Tilray Brands' (TLRY) shares were down 13% in Friday's premarket activity after the company unveiled a reverse stock split.

The company said late Wednesday that it will implement a 1-for-10 reverse stock split, with its shares to begin trading on a split-adjusted basis on Dec. 2.

The company said the reverse split will reduce the number of its shares to 116 million from about 1.16 billion.

Tilray said it expects the reverse split will make its shares "more attractive to institutional shareholders." The move is also aimed at "reducing expenditures associated with Tilray's annual meeting of stockholders, resulting in up to $1 million in cost savings on an annual run rate basis."