logo
Plus   Neg
Share
Email

Altria Group Completes Acquisition Of 45% Stake In Cronos Group - Quick Facts

Altria Group, Inc. (MO) announced Friday the completion of the acquisition of a 45 percent ownership interest in Toronto, Canada-based cannabinoid company Cronos Group Inc. (CRON, CRON.TO) for about $1.8 billion (about C$2.4 billion), following receipt of shareholder and Canadian regulatory approvals.

With the closure of this transaction, Altria has become the largest shareholder in Cronos Group.

Altria's investment represents an approximate 45% economic and voting interest in Cronos Group with a warrant to acquire additional ownership interest of 10 percent at a price of CAD $19.00 per share, exercisable over the next four years. The aggregate exercise price for the warrant is about $1.0 billion (about C$1.4 billion).

Under the terms of the transaction, Altria nominated four directors who were recently elected to serve on Cronos Group's seven member board: Kevin Crosthwaite, Jr., Murray Garnick, Bruce Gates and Bronwen Evans.

Altria expects to account for its investment in Cronos Group under the equity method of accounting. Altria will report its share of Cronos Group's results using a one-quarter lag because Cronos Group's results will not be available in time for Altria to record them in the concurrent period.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Department of Justice has reached a settlement agreement with a Texas-based Taco Bell franchise owner for immigration-related discrimination against certain employees. The settlement resolves the DOJ's investigation into whether MUY Brands LLC, and a related management company, MUY Consulting Inc., violated the Immigration and Nationality Act. Starbucks is gearing up for the upcoming holiday season by introducing its 2019 holiday flavors in U.S. grocery stores. The launch of the coffee giant's holiday line-up this year includes returning holiday favorites as well as a new item. Customers can now take home products that are making a comeback such as Starbucks Holiday Blend K-Cup and Ground Coffee, Peppermint Mocha Flavored Ground Coffee, Peekay International issued a recall of 7 ounce and 14 ounce packs containing Keshav Dry Apricot food treats as they contain undeclared allergens such as sulfites, according to a statement published by The U.S. Food and Drug Administration. Consumption of the product by those allergic or having severe sensitivity to sulfites could run the risk of serious or life-threatening allergic reactions.
Follow RTT
>