Canadian markets face risk-off sentiment amid inflation and AI uncertainty
Canadian equities have faced a challenging week across the TSX, TSX Venture Exchange, and Canadian Securities Exchange, as risk-off sentiment weighs on what has been a resilient bull market.
Nagging inflation concerns, lofty valuations, and growing uncertainty around returns from artificial intelligence investments have prompted investors to reassess their exposure. While the broader market struggles, several companies have made headlines with strategic moves that could influence their long-term outlook.

Tilray Implements Reverse Stock Split
Tilray Brands (TSX:TLRY, Forum), a global lifestyle and consumer packaged goods company operating in cannabis, beverage, and wellness sectors, announced the implementation of a one-for-10 reverse stock split of its common stock. The split became effective on December 1, 2025, with shares trading on a split-adjusted basis under the same ticker (TLRY) starting this week.
The reverse split reduces Tilray’s outstanding shares from approximately 1.16 billion to 116 million, aiming to:
- Align share count with peers of similar size.
- Increase attractiveness to institutional investors.
- Cut annual meeting costs by up to C$1 million.
Fractional shares will not be issued; instead, holders will receive cash in lieu. Pacific Stock Transfer will manage the process. While reverse splits often signal challenges, Tilray’s move could help stabilize its share price and broaden institutional interest.
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Theralase announces private placement
Theralase Technologies (TSXV:TLT, Forum) , a clinical-stage pharmaceutical company focused on light, radiation, and drug-activated therapeutics, has entered into an agreement with Research Capital Corp. for a brokered private placement. The offering, priced at $0.17 per unit, aims to raise C$4.5 million to C$5.5 million, with an option to increase by C$1 million.
Each unit includes:
- One common share
- One warrant exercisable at $0.21 for 60 months post-closing.
Proceeds will fund:
- Phase II clinical trials for non-muscle invasive bladder cancer.
- GLP toxicology studies for intravenous Rutherrin in cancer treatment.
- Working capital and corporate purposes.
If maximum proceeds are raised, additional initiatives include topical Ruvidar development for herpes simplex virus and device commercialization. The offering is expected to close in early December, subject to TSXV approval, and will be conducted under prospectus exemptions in Canada and private placement rules in the U.S.

Aegis Critical Energy Defence and Quantum eMotion launch ‘Tough Bhoy’ battery system
In a notable collaboration, Aegis Critical Energy Defence (CSE:QESS, Forum) and Quantum eMotion (TSXV:QNC, Forum) unveiled the Tough Bhoy, a fully integrated battery storage system designed for harsh climates and critical infrastructure. Key features include:
- Operation in temperatures as low as -50°C using thermal pad technology.
- Quantum cybersecurity protection against spoofing, replay attacks, and command interception.
- AI-powered thermal, smoke, and gas detection with predictive fault modeling.
- Modular architecture for microgrid scalability.
- Integration with generators, PV, wind, and radar-linked loads.
The system targets remote communities, military operations, and disaster response scenarios, offering resilience and energy continuity. This launch follows the October debut of the 135 kW MBT-SEETEL system, a sign of growing momentum in secure, climate-resilient energy solutions.
Investor corner
While Canadian markets face headwinds, these developments highlight opportunities in cannabis, biotech, and energy technology. Investors should deepen their due diligence on news-making stocks to ensure portfolios remain aligned with evolving market conditions and strategic innovations.
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