Altria Group, which owns multiple big tobacco brands like Marlboro and Skoal, announced a $1.8 billion investment into Canadian cannabis company Cronos Group at approximately $12.19 a share. That is a 16.2% premium over the stock’s Thursday close, according to Reuters.The transaction gives Altria a 45% interest in Cronos, which operates in both the medical and recreational marijuana markets. The deal is expected to close in the first half of 2019.
Altria can nominate four directors, including one independent director, to the Cronos board, giving it 4-to-3 control. There is also a warrant giving Altria the right to purchase additional shares at $14.25 a share over the next four years. If exercised in full, Altria would own 55% of the company.
