Marlboro Maker Investing $2.4 Billion In Marijuana Market

An employee tends to marijuana plants at the Aurora Cannabis facility in Edmonton Alberta one of Canada’s largest marijuana companies

Marlboro cigarette maker Altria Group Inc made a big bet on the rapidly growing marijuana industry on Friday with a $2.4 billion investment in Canadian cannabis producer Cronos Group Inc.

Altria has agreed to take a 45 percent stake in Toronto-based marijuana producer Cronos Group Inc., marking a major tobacco company's first foray into cannabis.

The deal also includes warrants to acquire an additional ownership interest in Cronos at a price of C$19 per share over the next four years, which could raise Altria's stake to 55 percent.

The first Canadian cannabis grower to list its shares on a USA stock market, Cronos said it plans to spend the money on product innovation, noting Altria's expertise in device technology and automation, and fuel Cronos's expansion into new countries amid a global shift toward loosening restrictions on the drug.

"Altria brings scale, expertise and complimentary capabilities. that we believe will enable us to expand the scope and enhance the scale of our company", said Mike Gorenstein, chairman, president and chief executive officer of Cronos on a call with analysts Friday. The new relationship represents an "exciting new growth opportunity" and Cronos is backed by an "excellent management team".

Altria's shares increased two percent in early Friday trading while Cronos' shares soared to more than 30 percent.

Cronos shares, meanwhile, surged as much as 33 percent to $13.95 in NY.

Chelsea's Eden Hazard ''Agrees Terms'' With Real Madrid
Real, on the other hand, could offer midfielder Mateo Kovacic, who is now on loan at the London club, in a player-plus-cash deal. The Blues boss now hopes for a successful outcome in those dealings, provided that Hazard wants to stay at Stamford Bridge.

Turkey's Erdogan praises Venezuela strongman's 'exemplary attitude' in first visit
Without naming the United States , Maduro decried sanctions and said Venezuela had the right to sell gold. The Venezuelan strongman is in Moscow to whip up support from allies to prop up an economy in freefall.

Obsidian announces The Outer Worlds, a true open-ended sci-fi RPG
It also seems to feature companions and first-person shooter combat that again doesn't seem all that dissimilar to Fallout . The game is not an open-world RPG, but rather a series of interconnected, smaller worlds and locations.

Altria had been in talks with cannabis companies for months, as its core cigarette business continues to shrink.

Shares of other cannabis companies rallied after the announcement. The company could also be positioning itself for the possible legalization of marijuana across the U.S., Quartz added.

After the deal is closed, Altria will have the right to nominate four directors, including one independent, to the Cronos board.

"When we were strategically planning how we would enter cannabis years ago, one of the companies that we looked at and had a lot of respect and admiration for was Altria", he said.

Philip Morris International CEO Andre' Calantzopoulos discusses why his company is keeping clear of the cannabis industry. "And they're seeing a ton of growth", he said in an interview.

Investors seem to be betting that more deals could be coming.

With smoking rates in the U.S. falling fast, Altria is under pressure to find new sources of revenue. It.

Related news:

Hot News

isis-killer-beheading-video-story-top Putin challenged: United States missile destroyer sailed near Vladivostok
Dec 08, 2018 - 22:01
The presence of a USA destroyer in the area is comparable to a Russian sail-by of San Diego, California or Pearl Harbor, Hawaii. US media say the US Navy is also planning a similar operation in the Black Sea , where Crimea is located.

isis-killer-beheading-video-story-top Time to rethink holiday lyrics, such as Baby It’s Cold Outside
Dec 08, 2018 - 19:45
Glenn Anderson, a host at the radio station, says that although the song is from another era, its lyrics feel "manipulative and wrong".

isis-killer-beheading-video-story-top Steve Cook's Waking Nightmare Begins With Hack On Mo Salah
Dec 08, 2018 - 18:18
The England global will also miss next week's Champions League game against Napoli and the FA Cup third round game at Wolves. In trademark style, Firmino stole the ball just inside Bournemouth's half and fed Salah.

isis-killer-beheading-video-story-top SpaceX ship sends holiday cheer to Space Station
Dec 08, 2018 - 14:54
The owner of SpaceX Elon Musk on this occasion, wrote on Twitter that a bad landing caused by a problem with a hydraulic pump. According to him, the first stage fell into the water near the coast and was not injured.

isis-killer-beheading-video-story-top John Kelly was interviewed by Robert Mueller's team
Dec 08, 2018 - 08:40
He replaced Reince Priebus, who had held the job for six months. "I'm going to be announcing at the Army-Navy game", Trump said. According to Axios , Kelly will be replaced by Nick Ayers , who now works as chief of staff for Vice President Mike Pence .

isis-killer-beheading-video-story-top Marvel Ultimate Alliance 3 revealed for Nintendo Switch
Dec 08, 2018 - 07:06
The new game features the same kind of action-RPG gameplay that made the franchise such a hit over a decade ago. This time, players may choose the traditional top-down perspective or a more zoomed in, "heroic" view.

isis-killer-beheading-video-story-top Crash Team Racing Nitro-Fueled Screenshots Look N. Sanely Good
Dec 08, 2018 - 07:05
Take a look at the official trailer above and tell us in the comments if you're excited to head out onto the track with Crash . Will you be taking it for a spin? Crash Team Racing is being remade in the vein of the Crash Bandicoot 'N-Sane Trilogy.

isis-killer-beheading-video-story-top CS:GO Battle Royale mode ‘Danger Zone’ arrives with special missions
Dec 08, 2018 - 07:04
Existing players who bought the game before its free-to-play status should be upgraded to Prime status, according to Valve. Grabbing wads off cash off of the ground (or in locked safes that you have to destroy with C4) feels out of place so far.

isis-killer-beheading-video-story-top Bethesda Support Leaks Fallout 76 Customer Names, Addresses & Phone Numbers
Dec 08, 2018 - 07:03
The company says it will notify any customers whose messages and photos may have been inadvertently shared. Bethesda has confirmed that they will not be providing patch notes following today's downtime.

isis-killer-beheading-video-story-top New Far Cry Game Leaked ; ‘Far Cry New Dawn’ Returns to Montana
Dec 08, 2018 - 06:59
Left unattended, the Highwaymen will retake them and increase security, upping the difficulty each time you come a-knockin'. As for what it actually is, it's like Far Cry 5 but with a post-apocalyptic style and a few new features.

isis-killer-beheading-video-story-top Fallout creators and Obsidian reveal new game The Outer Worlds
Dec 08, 2018 - 06:33
Geoff Keighley and Obsidian teased the game's announcement last week with the tagline, "Worlds Will Change". In it, you are a part of a colonist ship heading to the far reaches of outer space.

isis-killer-beheading-video-story-top Heather Nauert 'to replace Nikki Haley as USA envoy to UN'
Dec 08, 2018 - 05:26
The president, who puts a premium on loyalty, earlier hailed Nauert as "a supporter for a long time - really, excellent". Mercedes Schlapp was a Fox News commentator before she too was hired to work in the White House communications office.

isis-killer-beheading-video-story-top Bush to lie in state in Capitol Rotunda
Dec 08, 2018 - 05:23
George Bush Presidential Library and Museum Audiovisual ArchivePrescott and Dorothy Bush are pictured above. "I don't like him". Former President Jimmy Carter said the Republican's administration "was marked by grace, civility and social conscience".

isis-killer-beheading-video-story-top Cavs get Delly, Henson, picks from Bucks for Hill; Dekker traded
Dec 08, 2018 - 05:07
The Australian had been buried on Milwaukee's bench and is averaging just 1.7 points and 2.4 assists in 12 games. Henson, 27, hasn't played in a month, recently had wrist surgery and is expected to miss several months.

isis-killer-beheading-video-story-top Reason behind Huawei CFO Wanzhou Meng's arrest in Vancouver revealed
Dec 08, 2018 - 04:14
Supreme Court bail hearing along with a translator, in a drawing in Vancouver, British Columbia, Canada December 7, 2018. He said that the daughter of Huawei founder Ren Zhengfei had substantial financial resources and was a flight risk.