Tilray Inc., crowned Tuesday as the most valuable pot company, is now bigger than many leaders in other industries -- including household names that are more than 100 years old.
The British Columbia, Canada-based cannabis company opened higher by 50.7 percent Wednesday, bringing its total market value to $21.7 billion, according to data compiled by Bloomberg. This exceeds the values of American Airlines Group Inc. at $18.7 billion, Clorox Co. at $19.5 billion, and CBS Corp. at $20.9 billion as of Tuesday’s close, while closing in on Hershey Co. at $21.7 billion.
Its market value is now half that of Constellation Brands Inc., the Corona parent that recently dipped its toe into the marijuana industry through an investment in Canopy Growth Corp. -- the same company Tilray dethroned this week as the largest cannabis firm.
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Tilray, with 330 total employees as of June 4 (versus American Airlines’ more than 131,000), has more than 76 million shares outstanding, although the largest holder, Chief Executive Officer Brendan Kennedy’s Privateer Holdings, holds more than 58 million of that total, as of July 18. The low float may be at least partially responsible for the recent volatility, while short sellers may find it difficult to provide a counterbalance.
Kennedy hit the interview circuit Tuesday, culminating with an appearance on CNBC’s Mad Money with Jim Cramer, after the company won approval to import marijuana to the U.S. for a clinical trial. Shares rose post-market by more than 11 percent, only to extend those gains in pre-market trading Wednesday.
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