Marlboro manufacturer to cover $2.4B for the 45per cent stake in Cronos Group

Marlboro manufacturer to cover $2.4B for the 45per cent stake in Cronos Group

CannabizDaily reported the other day that Altria Group, Inc., the maker of popular tobacco cigarette brand Marlboro, is in talks with Canadian cannabis business Cronos Group regarding a takeover.

The 2 businesses have since finalized an understanding.

The Cronos-Altria agreement

The Virginia-based tobacco business is having a 45 % within the medical and cannabis that are recreational for a short $2.4 billion, Cronos announced on Friday.

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Altria will even pay $1.4 billion for warrants, which, if exercised, would offer it a 55 % ownership stake in Cronos.

Additionally within the contract, Altria has the ability to nominate four directors to Cronos’ board. This also implies that the Cronos board, which presently has five members, may be expanded to incorporate seven people.

Huge investment

Fox 13 News noted that the tobacco company’s investment would be appropriate up there with Constellation Brands’ $4-billion bid when it comes to shares of some other Canadian cooking pot producer, Canopy Growth Corp.