Sunday , January 24 2021

Marlboro maker Altria captures 45% of shares in Canadian Cronos company for $ 2.4 billion



Part of cannabis and investment

The Canadian Cannabis producer Cronos Group will receive a $ 2.4 billion investment from Altria Group, one of the largest tobacco companies in the world, according to a friendly deal announced on Friday.

Altria based in Virginia, parents from the company that makes Marlboro cigarettes will get 45% of property in Cronos-based Toronto with the initial investment.

Altria can also invest up to $ 1.4 billion in four years, which will increase its property in Cronos to 55%, under the layout.

Story continues under advertisement

As part of the agreement, Altria has the right to appoint four directors to the Cronos Board, which will be expanded to seven members of five.

"Altria is the ideal partner for Cronos Group, providing us with the resources and expertise we need to speed up our strategic growth," said in a statement, Cronos, president, president and chief officer Mike Gorenstein.

He added that Altria had "decades of experience in regulatory, government, performance, product development and brand management, which we hope to improve, especially as new markets for cannabis open around the world."

Canada is the second country in the world to legalize a pot for recreational use. Several US states also allow to use cannabis but it remains illegal under American federal law.

"Investigating in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new opportunity for Altria," said Friday Howard Willard, president and chief executive officer of the president.

"We believe Cronos Group's excellent management team has created the skills necessary to compete worldwide, and we hope to help Cronos Group realize its significant growth potential."

Altria agreed to pay $ 16.25 per purchase to obtain Cronos 146.2 million shares, which are above the pre-announced price for the stock.

Story continues under advertisement

It will also obtain guarantees that will allow Black to buy more stock at $ 19 for interchange within four years.

The value of public exchanged Canadian canabon companies grew until October 17, when sales of cannabis became legal under rules and regulations established by Ottawa and the provinces.

However, large-scale power supplies have generally retired from their highlands in recent weeks between supply deficits and complications with the sales process under the new regime.

Cronos had previously confirmed reports that he talked with Altria, which joins Molson Coors, Constellation Brands and other firm companies that move into the cannabis space.

Its actions were more than 35 percent on premier business transactions on Friday after the announcement, making them worth about $ 14 (part of US $ 10.45 on the next Thursday on Nasdaq and $ 13.98 in the Toronto Stock Exchange.

Available now: Cannabis Professional, the automatic e-mail newsletter tailored specifically for professionals in the rapidly developing cannabis industry. Subscribe now.


Source link