Marlboro maker Altria officially enters the marijuana business

08 December, 2018, 12:06 | Author: Regina Silva
  • A look at medical marijuana cannabis

Tobacco giant Altira is investing $1.8 billion in Canadian cannabis company Cronos Group.

The investment is a 45% stake and Altria could pay another $1.4 billion for warrants that would increase its stake to 55% over the next five years.

Altria's Chairman and CEO Howard Willard said Cronos will serve as the company's exclusive partner in the global cannabis category.

"This is showing that the entire industry is viable and a huge growth opportunity". Canadian pot stocks have been crushed in recent weeks after a lacklustre start to recreational sales amid reports of countrywide supply shortages.

The cigarette maker's move follows modest investments in the cannabis sector in the past year by tobacco companies Imperial Brands and Pyxus International, formerly Alliance One International.

In June, British tobacco giant Imperial Brands was among investors taking a stake in Oxford Cannabinoid Technologies, a United Kingdom-based medical cannabis startup.

Cronos shares were up 23% in pre-market trading, while Altria's stock gained 2%, according to CNBC.

Stranger Things: The Game revealed at the Game Awards
It's a retro-styled beat 'em up you can play in co-op, set after the events of the third season of the award-winning show. The awkwardly-titled Stranger Things 3: The Game is a 16-bit adaption that follows the events of Season 3.


Ariana Grande's Thank U, Next video smashes records
If I want to drop a third album while I'm on tour, I'll do that too! And Ariana isn't interested in "conforming to the pop star agenda".


Thiessen: China goes toe-to-toe with Trump on trade - and trips
It also would begin buying products from United States farmers "immediately". Trump added China would roll back tariffs of 40% on cars.


The exclusive partnership will give Cronos additional financial resources, regulatory expertise and product development and commercialization capabilities to tap global cannabis opportunities, the company said in the announcement.

With U.S. smoking rates falling fast, Richmond, Virginia-based Altria is under pressure to find new avenues to expand revenue. "This is big for everyone", Cronos CEO Mike Gorenstein said in an interview with Marijuana Business Daily. Altria is in talks to acquire a stake in e-cigarette start-up Juul Labs Inc., according to reports by USA media outlets.

As well, the number of countries that have legalized medical cannabis continues to grow, with South Korea among the latest to give the green light. It has entered into joint ventures to boost its presence and capacity in Canada and overseas, including in Israel and Australia.

Cronos plans to focus on cannabis genetics, innovation and branding, while contracting with farmers to grow the product and working with retailers. Altria shares were up about 2.5 percent.

Cronos has partnered with Boston biotech firm Ginkgo Bioworks Inc.to genetically engineer the active compounds of cannabis. We think that model of growing your own plants is very hard to scale and to execute well.

Altria's stock fell by almost 25 percent this year and revenue is expected to grow by only 1 percent this year and in 2019, CNN Business reported. JPMorgan Chase Bank NA, a subsidiary of JPMorgan Chase & Co., is providing financing to Altria. Canada's top lenders, who have largely refused to serve clients in the cannabis sector for years, are now getting shut out of the sector's biggest transactions.

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

Recommended:

  • Epic's store launches with exclusives from Supergiant & Coffee Stain

    Epic's store launches with exclusives from Supergiant & Coffee Stain

    The latest announcement also shared some important notes about how this will work, including what it means for developers. So far Epic clearly focused on indie games, with publisher Annapurna Interactive going all in with its lineup.
    Dusted Heroes Won’t Feature In Any Of The Avengers 4 Marketing

    Dusted Heroes Won’t Feature In Any Of The Avengers 4 Marketing

    Not only that but Spider-Man died in Avengers Infinity War and Avengers 4 will reveal how he's resurrected for Far From Home . Lets be honest, the only trailer everyone is watching on repeat is the full length trailer of Marvel's Captain Marvel .
    Tommy Fury: Tyson my motivation, says brother before debut

    Tommy Fury: Tyson my motivation, says brother before debut

    Last Saturday, it is little to say that the fight between Deontay Wilder and Tyson Fury has kept all its promises question show. He don't even know how he got up. "I hold it with pride, respect and honour and it means more to me than any belt ever anyway".
  • Obsidian's next RPG is The Outer Worlds, first trailer released

    Obsidian's next RPG is The Outer Worlds, first trailer released

    The first reveal of The Outer Worlds paints a picture that might make fans of Obsidian's Fallout: New Vegas happy. Will you be getting this when it launches next year? What do you guys think of Obsidian's Outer Worlds trailer?
    Jeep Wrangler JL bombs Euro NCAP crash tests with 1-star result

    Jeep Wrangler JL bombs Euro NCAP crash tests with 1-star result

    Another part of the report talked about how the deformation of the footwell showed the limit of the structure's integrity. In fact, the lane-keep assist and emergency braking are not standard on the Euro-spec new Jeep Wrangler.
    First Baby Born To Woman With Uterus From Deceased Donor

    First Baby Born To Woman With Uterus From Deceased Donor

    The surgical team had to connect the donor's uterus with the veins, arteries, ligaments, and vaginal canal of the recipient. And it's possible that patients won't need as many immunosuppressants as they now receive to stave off organ rejection.
  • First Impressions Of Sara Ali Khan's Kedarnath

    First Impressions Of Sara Ali Khan's Kedarnath

    In Kedarnath , Tarun plays a role of a pithu leader (people who carry pilgrims on their back), who fulfils the demands of pithus. BJP functionaries said the film "encouraged love jihad " and "hurt Hindu sentiments". "The movie is banned everywhere in state".
    Australia set to spy on WhatsApp messages with encryption law

    Australia set to spy on WhatsApp messages with encryption law

    Mr Husic said this week's outcome was "not a flawless endpoint" and "there will be people who wonder why we did what we did". Australia may not be one of Apple's biggest markets, but that doesn't mean that this new law might not cause problems.
    Christmas dinner is on its way to the International Space Station

    Christmas dinner is on its way to the International Space Station

    The Space Coast launch Wednesday will be SpaceX's 16th under the company's commercial resupply contract for NASA . The newest residents will remain on board for six months, while the others will return to Earth on December 20.
  • CSGO is now Free To Play; Battle Royale introduced as Danger Zone

    CSGO is now Free To Play; Battle Royale introduced as Danger Zone

    As in other battle royale games, players must find weapons around the map and secure supply drops for special equipment. What is included with CS:GO? Another area where Danger Zone differs from other battle royale games is its player count.
    Rap star Kendrick Lamar, women nominees lead Grammy race

    Rap star Kendrick Lamar, women nominees lead Grammy race

    On the flip side of that equation is best new artist nominee Margo Price, who has been releasing independent music since 2010. Singer H.E.R. also received five nods for her self-titled 2017 album, including Best New Artist and Album of the Year .
    Stevenson after the fight with the Stud is in critical condition

    Stevenson after the fight with the Stud is in critical condition

    Stevenson's partner, Simone God, also made her first public comments Tuesday, thanking people for their messages of support. Stevenson, and asks everyone to respect their privacy", said Targon.


Popular

Police have ‘grave fears’ about British woman missing in New Zealand
David Millane, father of missing British tourist Grace Millane, speaks to the media as police give updates on the investigation. Meanwhile, the scene examination at the Citylife hotel is continuing as detectives review hundreds of hours of CCTV footage.

Crash Team Racing Remake Will Release In June 2019
Crash Team Racing is being remade in the vein of the Crash Bandicoot 'N-Sane Trilogy. Look for more information on Crash Team Racing Nitro-Fueled in the months ahead!

Obsidian's making a first person sci-fi game called The Outer Worlds
The Outer Worlds is not available for pre-order yet, and it doesn't have a specific release date. Have a look at the trailer below to get a taste of what you can expect from The Outer Worlds .

Three Takeaways as Trump Picks Former Fox Anchor for UN Envoy Post
President Donald Trump named State Department spokeswoman Heather Nauert as the ambassador to the United Nations on Friday. At a State Department briefing on June 5, Nauert was asked about controversial comments that U.S.

Milwaukee Bucks trade Matthew Dellavedova to Cleveland Cavaliers for George Hill
Milwaukee will save $18 million in salary next season with the deal, too, something that will likely help it bolster its roster. It could save almost $19 million if they don't keep Hill, too, as Hill only has $1 million of his $19 million deal guaranteed.

AHEPA statement on the passing of George H.W. Bush
He added, "President Bush always found a way to set the bar higher". President Donald Trump is expected to attend. I know what he would say: "Nonsense".

Arrested Huawei CFO potentially faces decades in jail
Her appearance at the British Columbia Supreme Court in Vancouver is a prelude to an extradition process that could take months. That was about six years after the company was founded to sell phone switches.

Greenland ice sheet melting at alarming rate of speed
Instead of escaping the ice sheet, the short-lived meltwater forms icy bands that stack up layers of densely packed ice over time. The study provides new evidence of the impacts of climate change on Arctic melting and global sea level rise .

Karnataka: Lake water pumped out after discovery of HIV infected woman’s body
The reports claimed that she had been suffering from HIV and that possibly could be the reason why she committed suicide . The Morab lake is the biggest in Navalgund taluk and the only source of drinking water for villagers and cattle.

Tyler Perry pays off every layaway at two Walmart stores
The curmudgeonly character of " Madea " has helped to make Tyler Perry wealthy, but it sounds like he's now over her. He spent $434,000 on items at a Walmart in East Point and another store in Douglasville.