U.S. legal pot action grows as tobacco giant buys into Cronos

Share

Michelle Wine Estates and Marlboro, has announced a $1.8 billion investment in Canadian cannabis company Cronos Group.

— Marlboro maker Altria Group Inc., which is headquartered in Richmond, Virginia, is paying $1.8 billion for a 45 percent stake in Cronos Group.

Could pot stocks make you rich? .

"The proceeds from Altria's investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in (research and development) and brands that resonate with our consumers", he continued.

Rapid growth in the cannabis market is expected to continue as legalization expands in the US and social norms change.

Philip Morris International CEO Andre' Calantzopoulos discusses why his company is keeping clear of the cannabis industry.

"Altria's experience is very wide-ranging - not just in tobacco, but in adult beverages in different categories and decades of experience in how to bring different products to market", Cronos chief executive Michael Gorenstein said on call with analysts. Altria will also get warrants that will give the option to increase its stake to 55%.

Читайте также: Milwaukee Bucks trade Matthew Dellavedova to Cleveland Cavaliers for George Hill

In June, British tobacco giant Imperial Brands was among investors taking a stake in Oxford Cannabinoid Technologies, a United Kingdom-based medical cannabis startup.

The investment comes a little more than a year after Corona beer distributor Constellation Brands announced that it would invest billions of dollars in Canopy Growth Corporation (NYSE: CGC).

Prior to Friday's announcement, Cronos had confirmed reports that it was in talks with Altria.

Altria agreed to acquire 146.2 million newly issued shares for C$16.25 each - a 16% premium from yesterday's close.

Altria's huge investment lit up shares of cannabis companies that have begun to set up shop in Canada, where recreational use was legalized nationwide this year. The decision by Altria to go ahead with an investment in Cronos shows that Altria is serious about investing in marijuana as a new growth area as sales of traditional cigarettes slow. It said the deal with Altria does not limit Cronos from any other partnerships.

Altria has been grappling with the steady decline of tobacco smoking rates and sees potential to tap into a new segment of growth as marijuana moves into the mainstream.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2019 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Share