Marlboro cigarette maker Altria Group Inc. is in early stage talks to acquire Canadian cannabis producer Cronos Group Inc., as it seeks to diversify its business beyond traditional smokers, people familiar with the matter said on Monday.
Canada this year legalized recreational use of marijuana and is seen as a testing ground for pot companies that expect to expand globally as other countries follow suit.
Cronos has not agreed to any deal and there is no certainty it will do so, the sources said. The discussions between Cronos and Altria are expected to last for several weeks, one of the sources added.
The sources asked not to be identified because the matter is confidential. Altria did not immediately respond to a request for comment, while Cronos declined to comment.
Cronos shares listed on the Nasdaq rose 23 percent to $11.32 in Monday afternoon trading after Reuters reported on the deal talks, giving Cronos a market value of more than $2 billion.
Other Canadian cannabis stocks also jumped. Tilray Inc. shares rose 4 percent, while New Age Beverages Corp shares soared 10 percent. [Read more at St. Louis Post-Dispatch]
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Notify me of follow-up comments by email.
Notify me of new posts by email.
Cannabis gifting parties are no longer allowed in Connecticut. Gov. Ned Lamont this week signed legislation that seeks to crack down on the unregulated cannabis bazaars that cropped up across Connecticut after the drug became fully legal here. At the events, attended by several thousand who usually paid a fee to get in, people would exchange items…
A calamitous mix-up at a Portland marijuana bottling plant apparently originated with a single employee who confused two similar buckets with nearly identical identification numbers, according to a state investigative report. The report does not specify, though, whether manufacturer Curaleaf had any quality control measures in place to catch such mistakes, and state investigators withheld…
PROVIDENCE — With a stroke of a pen, Rhode Island on Wednesday joined its two neighboring states and 16 others in legalizing the recreational use of marijuana. Less than 24 hours after lawmakers overwhelmingly passed the bill, Gov. Dan McKee signed the measure, which promises automatic expungement of past marijuana possession convictions and reserves a quarter of new…
When Pennsylvania lawmakers legalized medical cannabis in 2016, they struck an unusual deal: Physicians can approve patients for the program but they are banned from advertising that power. Lawmakers feared advertising would encourage thousands of patients to flood the same doctor’s office solely seeking a medical marijuana card, or motivate physicians to excessively approve patients…