Altria to invest $1.8 billion in cannabis company Cronos Group
Altria Group said Friday it agreed to buy a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion.
As part of the agreement, Altria will be able to name four directors to Cronos board, including one independent director. These additions will boost the size of Cronos’ board to seven from five directors.
The deal also includes a warrant to acquire an added stake in Cronos at the price of $19 per share exercisable over four years from the closing date. If exercised in full, the warrant would boost Altria’s Cronos stake by 10 percent to about 55 percent.
In premarket trading, Cronos shares were up 23 percent on the news.