Marlboro’s owner invests $1.8 billion in Canadian cannabis company

Marlboro cigarette maker Altria Group Inc made a big bet on the rapidly growing marijuana industry on Friday with a $2.4 billion investment in Canadian cannabis producer Cronos Group Inc.

The entry of Altria - owner of Marlboro maker Philip Morris USA and an investor in alcohol giant Anheuser-Busch InBev - is another major milestone for the marijuana sector, coming on the heels of Constellation Brands' bombshell investment in Canopy Growth in August. That will give Altria a 45% stake in the company, with an option for Altria to increase its stake to 55% over the next five years.

Cronos first murmured about Altria's potential takeover this week.

"Altria brings scale, expertise and complementary capabilities. that we believe will enable us to expand the scope and enhance the scale of our company", Mike Gorenstein, chairman, president and chief executive officer of Cronos, said on a call with analysts Friday. Canadian pot stocks have been crushed in recent weeks after a lacklustre start to recreational sales amid reports of countrywide supply shortages.

After the news was announced shares of Cronos Group Inc. jumped 31 per cent and neared an all-time high at the opening bell on Friday.

Altria will nominate four directors to an expanded seven-member Cronos board. Marijuana, while still illegal on the federal level in the US, is now allowed in an increasing number of states, while Canada now represents a large laboratory for the nascent industry.

"We believe an investment of this magnitude provides overall legitimacy to the industry as a whole and should represent a positive catalyst for the sector", he said.

Grace Millane: Disappearance of British backpacker being investigated as murder
Police later said they had spoken to the man and that he was a "person of interest", although he was not held in custody. Ms Millane was last seen at CityLife Hotel in Auckland at 9:41pm on December 1, accompanied by the 26-year-old man.

Epic Games Store launches with handful of games
And if you're using Unreal Engine, Epic will cover the 5% engine royalty for sales on the Epic Games store , out of Epic's 12%". If you've played Fortnite , you likely have an Epic Games account, which is what you need to log in to the Epic Games store .

Woman uses neti pot, dies from brain-eating amoeba
But what doctors initially thought was a brain tumor turned out to be rare amoebas that were attacking her brain. Unfortunately, this woman became one of these fatalities, dying just one month after the surgery.

The country has largely been celebrating ever since, but in an unexpected step one of the biggest cigarette firms in the world has announced that it is pumping an incredible CAN $3.8 billion (US $2.9bn / £2.2bn) into the cannabis market. "And they're seeing a ton of growth", he said in an interview.

Altria's investment in Cronos is by far the largest move by Big Tobacco into cannabis, said Martin Landry, an analyst with GMP Securities.

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 value of publicly-traded Canadian cannabis companies had soared leading up to October 17, when sales of cannabis became legal under rules and regulations established by Ottawa and the provinces.

The Canadian subsidiary of Molson Coors (TAP) has a joint venture with The Hydropothecary Corporation to produce cannabis-infused drinks for the Canadian market.

Prior to Friday's announcement, Cronos had confirmed reports that it was in talks with Altria.

Cronos said it will use the capital to accelerate its global growth and expansion, as well as research and development.

Related News:

08 December 2018

Crash Team Racing Nitro-Fueled Revs Up its Engine Once More
The game will have a suggested retail price of $39.99, but a special edition called the Nitros Oxide Edition will go for $59.99. Crash Bandicoot fans, rejoice - a remaster of Crash Team Racing has been confirmed. and the trailer looks fantastic.

08 December 2018

CS:GO Gets Free-to-Play Battle Royale Mode Called ‘Danger Zone’
The pace seems to be much faster than a typical battle royale, and Valve says matches typically last about 10 minutes. Every match in this new mode features pistols, rifles, SMGs, and heavy weapons from CS:GO's original arsenal.

08 December 2018

The Outer Worlds - Official Announcement Trailer
In this area of space, corporations have taken control and rule over various planets. Their new game, The Outer Worlds , was just announced during The Game Awards .
08 December 2018

Trust in Australian tech firms compromised by new encryption laws: Frank Galbally
Canberra says the laws are needed to intercept communications between serious criminals, like terrorists and paedophiles. This makes Australia the first Western nation to breach the last bastion of online privacy , namely encryption .

08 December 2018

Stock markets will close on Wednesday to honor George H.W. Bush
US President, Donald Trump, has declared a day of national mourning for George H W Bush who has died at the age of 94. For the remainder of his life, Bush would keep a distance from the political fray, looking on while one son, George W.

07 December 2018

China promises prompt action on US trade pact
Since then, the two countries have exchanged several rounds of trade duties on hundreds of billions of dollars' worth of goods. China had been the largest purchaser of USA soybeans, buying $12.25 billion worth of that product in 2017.
07 December 2018

World’s first baby born via uterus transplant from deceased donor
Previously, with live donors, doctors have waited at least a year following the transplant to begin trying for a pregnancy. The world's first baby has been born using a uterus transplanted from a deceased donor , according to Brazilian doctors.

07 December 2018

THE BAND'S VISIT, CAROUSEL & More Nominated for 2019 GRAMMY AWARDS
Monáe, herself snagged an Album Of The Year nomination for her most recent project, Dirty Computer . Critics love Brandi Carlile , but the folk singer-songwriter is not exactly a household name.

07 December 2018

Stevenson suffered ‘severe traumatic brain injury’
On behalf of the Stevenson family, the hospital also issued a statement. "They want to be at the bedside of Mr. Stevenson, 41, showed serious concussion symptoms when he was admitted.
08 December 2018

New 'Far Cry New Dawn' Gameplay Revealed
The next entry in the Far Cry series has seen its box art leaked ahead of an apparent Game Awards announcement. What's New in "New Dawn"? There's a greater emphasis on crafting, as you can create weapons and vehicles.

08 December 2018

SpaceX set to send cargo to space station
It's the first time that's happened since the groundbreaking launch of the company's Falcon Heavy spacecraft in February . The cause of the rocket's spin, according to Musk , was a stalling out of one of the rocket's "grid fin hydraulic pump".

07 December 2018

'Dumplin'' serves up pageant drama set to Dolly Parton songs
The Along Came Polly actress added to her glitzy ensemble with strappy heels and chandelier earrings for some added pizzazz. Just kind of go out on wicker chairs". "I know that you can't stand that your daughter looks like this", Willowdean says.