Al­tria buys stake in mar­i­juana firm

Chattanooga Times Free Press - - BUSINESS -

One of the world’s big­gest tobacco com­pa­nies is div­ing into the cannabis mar­ket with a $1.8 bil­lion buy-in.

Marl­boro maker Al­tria Group Inc. is tak­ing a 45 per­cent stake in Cronos Group, the Cana­dian med­i­cal and recre­ational mar­i­juana provider said Fri­day.

The agree­ment in­cludes a war­rant to ac­quire ad­di­tional shares over the next four years that could give the Al­tria, which is based in Rich­mond, Vir­ginia, a 55 per­cent own­er­ship stake in the Toronto com­pany.

That would mean Al­tria’s in­vest­ment would be in the same league as the $4 bil­lion spent ear­lier this year by Con­stel­la­tion Brands to ac­quire shares of Canopy Growth Corp., an­other Cana­dian pot pro­ducer.

The Au­gust in­vest­ment by Con­stel­la­tion, which makes Corona and other bev­er­ages, was the largest to date by a ma­jor U.S. cor­po­ra­tion in the cannabis mar­ket.

Con­sumers are ex­pected to spend $57 bil­lion per year world­wide on le­gal cannabis by 2027, ac­cord­ing to Ar­cview Mar­ket Re­search, a cannabis-fo­cused in­vest­ment firm. In North Amer­ica, that spend­ing is ex­pected to grow from $9.2 bil­lion in 2017 to $47.3 bil­lion in 2027.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.