Part of cannabis and investment
Great Tobacco, meets cannabis.
Altria Group Inc., the creator of Marlboro cigarettes, said in the Newspaper Friday that it had reached an agreement to buy a great deal of interest in Cronos Group Inc., the Toronto Cannabis player.
Richmond, Va.-based Altria, pays $ 2.4 billion to get a 45 percent stake in Cronos for $ 16.25 share, offering a 42 percent share at the price, in which parts of Cronos have been trading in the 10th day period until November 30. The agreement also includes a guarantee that, if exercised, it could see the title of Altria to reach 55 percent for another $ 1.4 billion.
Cronos said it would use the money to expand new products and regions that have legalized cannabis.
The agreement could offer rise to a sector, which in recent weeks has taken a sack in the bag after a slow start to recreational sales between information on broadband supplies in Canada. It also marks the entry of another great global player in the legal cabin space, because Altria is united to alcoholic giants, Brands Inc. Constellations and Molson Coors Brewing Co., who also pursue a Cannabis strategy or a large investment or joint venture. This will lead investors to speculate that a Canadian Marijuana company could be close to attracting an important company agreement.
The Cronos parts jumped 23 percent to $ 17.21 before 10 a.m. in Toronto. Altria's stock rose 2 percent, as well as other large Canadian canabon companies.
Altria was talking with cannabis companies for months. It also weighed to invest in other farmers, such as Aphria Inc. and CannTrust Holdings Inc., sources say. Altria is the first major tobacco company to write a big check to a Canadian cannabis company.
Its agreement with Cronos is due to close in the first half of 2019. As part of the agreement, Altria will be able to appoint four directors to the Cronos Board, which will be expanded to seven members of five. JPMorgan Chase Bank N.A., a subsidiary of JPMorgan Chase & Co., provides funding to Altria.
Cronos confirmed on November 30 that he talked to the Reuters's Post Office report.
Available now: Cannabis Professional, the automatic e-mail newsletter tailored specifically for professionals in the rapidly developing cannabis industry. Subscribe now.