• Big Tobacco Company Altria Takes Major Stake in Canadian Cannabis Firm Cronos Group

    7 days ago - By Fortune

    Altria Group , which owns multiple big tobacco brands like Marlboro and Skoal, announced a $1.8 billion investment into Canadian cannabis company Cronos Group at approximately $12.19 a share. That is a 16.2% premium over the stock's Thursday close, according to Reuters .
    The transaction gives Altria a 45% interest in Cronos, which operates in both the medical and recreational marijuana markets. The deal is expected to close in the first half of 2019.
    Altria can nominate four directors, including one independent director, to the Cronos board, giving it 4-to-3 control. There is also a...
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  • The maker of Marlboro cigarettes is plowing $1.8 billion into the cannabis producer Cronos

    The maker of Marlboro cigarettes is plowing $1.8 billion into the cannabis producer Cronos

    7 days ago - By Business Insider

    Altria , the maker of Marlboro cigarettes announced Friday it intends to invest 2.4 billion Canadian dollars into the cannabis producer Cronos , sending Cronos shares up as much as 35% to $14.11 a piece.
    Altria has agreed to acquire 146.2 million Cronos shares at a price of 16.25 Canadian dollars per share - a 41.5% premium to the company's 10-day volume weighted average price on the Toronto Stock Exchange ending November 30, according to Cronos. That was the last unaffected trading day prior to when news first broke that the two companies were in talks for a potential deal, the company...
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  • The maker of Marlboro cigarettes is plowing $1.8 billion into the cannabis producer Cronos

    The maker of Marlboro cigarettes is plowing $1.8 billion into the cannabis producer Cronos

    7 days ago - By Business Insider

    Altria , the maker of Marlboro cigarettes announced Friday it intends to invest $2.4 billion Canadian dollars into the Canadian cannabis producer Cronos , sending Cronos shares up as much as 35% to $14.11 a piece.
    "Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth," said Cronos CEO Mike Gorenstein in a press release.
    "The proceeds from Altria's investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that...
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  • Marlboro maker leaps into the cannabis trade with $2.4B

    7 days ago - By Chron

    NEW YORK - One of the world's biggest tobacco companies is diving into the cannabis market with a $2.4 billion investment in Cronos Group, a Canadian medical and recreational marijuana company.
    Altria, which makes Marlboro cigarettes, is taking a 45 percent stake in the Toronto company.
    Cronos said Friday that the Richmond, Virginia, tobacco company will pay another $1.4 billion for warrants that if exercised, would give the Altria a 55 percent majority ownership stake.
    Cronos first announced that it was in talks with Altria this week.
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