Marlboro Owner Altria Invests in Cannabis Company Cronos

Altria makes Marlboro cigars and is one of the largest tobacco companies in the world, Announced an investment of 2.4 billion dollars in Cronos Group, a Canadian medical and recreational marijuana company. We recommend you Create a cannabis industry association in Mexico Through this investment, Altria is acquiring a 45 percent stake in the Toronto company. ”

As part of the agreement, at the time of closure, Altria will have the right to appoint four directors, including an independent director to serve on the Board of Directors of the Cronos Group, which will be expanded from five to seven directors,” he said in a statement release. Cronos reported that the tobacco company in Richmond, Virginia, will pay another $ 1.4 billion for guarantees that, if exercised, would give Altria a majority stake of 55 percent.

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

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

Altria’s investment has encouraged cannabis companies that have begun to establish in Canada, where activities related to the herb have been booming, after which since October 17, 2018 the country became the second, after Uruguay, in legalizing consumption.

Cronos Group is a company with a presence in the five continents that operates in the Canadian market with products related to the recreational use of cannabis for adults.

The rapid growth of the cannabis market is expected to continue as legalization in the United States expands and social norms change. On Tuesday, the ultraconservative state of Utah became the most recent site to legalize the use of marijuana for medical purposes.

Arcview Market Research, an investment company focused on cannabis, expects consumers to spend $ 57 billion a year on legal marijuana by 2027. In North America, that spending is expected to increase from 9.2 billion dollars in 2017 to 47.3 billion dollars in 2027.

About the author

Angela Nagata

Angela Nagata is a reporter for De Lune. After graduating from NYU with a master degree in history,Angela got an internship at WABC-TV New York and worked on profiling local businesses across the city.

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