We already reported this investment earlier this year, and now it’s confirmed. Tobacco giant Altria is jumping on the cannabis bandwagon.
Altria – one of the world’s largest tobacco companies – announced a $1.8 billion investment in cannabis company Cronos Group. Through this investment, Altria would get a 45% equity stake in Cronos with the option to increase ownership in the company to 55% over the next four years.
Canadian Cronos Group offers production and distribution platforms for medical marijuana in Canada and Germany.
“Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,” Howard Willard, Altria’s Chairman and Chief Executive Officer, told CNN.
Altria’s investment is expected to give Cronos Group the funds and support for additional growth and expansion.
“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth. The proceeds from Altria’s investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that resonate with our consumers,” Cronos Group CEO Mike Gorenstein said.
The transaction got finalized in mid-2019.