Altria Group Announces $2.4 Billion Strategic Investment in Cronos Group
Goodmans LLP acted for Altria Group, Inc. (NYSE:MO) (“Altria”) in connection with its agreement to acquire newly issued shares in Cronos Group Inc. (“Cronos Group”) (TSX: CRON and NASDAQ: CRON), a leading global cannabis company, headquartered in Toronto, Canada.
Pursuant to the transaction, Altria will acquire (i) a 45% equity stake in Cronos Group, at a price of C$16.25 per share, for an aggregate investment by Altria of approximately C$2.4 billion (approximately US$1.8 billion) and (ii) a warrant to acquire an additional 10% equity stake in Cronos Group at a price of C$19.00 per share exercisable over four years from the closing date. If exercised in full, the warrant would increase Altria’s ownership in Cronos Group to approximately 55%. This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry. The transaction is expected to close in the first half of 2019, subject to certain customary closing conditions.
Altria Group is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Nat Sherman, Nu Mark, Ste. Michelle Wine Estates and Philip Morris Capital Corporation.
Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across five continents.
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