MARL­BORO MAKER PLACES $1.8 BIL­LION BET ON POT

USA TODAY Weekend Extra - - NEWS -

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 says. The agree­ment in­cludes a war­rant to ac­quire ad­di­tional shares over the next four years that could give 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. What­ever hes­i­ta­tion large U.S. cor­po­ra­tions had about en­ter­ing the cannabis mar­ket ap­pears to be fad­ing if there is a fi­nan­cial jus­ti­fi­ca­tion.

AP

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.