Altria Group Inc., Parent Company of Marlboro cigarettes, is claiming a 45 percent stake in Cronos Group, a major Canadian medical and recreational marijuana distributor.
Shares of the Cronos Group went up nearly 24% after a $1.8 billion deal made from Altria, Marlboro’s parent company to acquire 45% of Cronos, which can increase to up to 55% over the next 4 years.
Cronos says the deal will accelerate the company’s pace of expansion across the globe. This is all the latest in a string of corporate companies hoping to benefit from Canada’s move to legalize recreational cannabis.
With the Cronos deal, Altria will get a new opportunity to boost revenue as cigarette smoking continues to decline in the U.S.
Altria has also been in acquisition talks with popular e-cigarette company JUUL. Reports say that a deal between Altria and JUUL can be completed as soon as the beginning of 2019.
The corporatization of cannabis is well underway. There has never been a better time to learn how to grow your own than now.
Legalization is raising concerns among small-scale cannabis farmers that the corporatization of cannabis may be right around the corner.