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The world's largest tobacco company and maker of Marlboro cigarettes, Altria, has reportedly agreed to a deal with licensed cannabis producer Cronos worth approximately C$2.4 billion.

According to the reports, Altria will acquire a 45 percent stake in Cronos, and will have the option to invest up to a further C$1.04 billion.

Mike Gorenstein, Chairman, President and Chief Executive Officer of the Cronos Group commented via press release “The proceeds from Altria’s investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D and brands that resonate with our consumers.”

Howard Willard, Altria's Chairman and Chief Executive Officer also commented on the deal “We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.”

Altria, who is also the parent company of Philip Morris USA, has seen their share price fall more than 20 percent over the year, as the level of Americans smoking cigarettes has reached an all-time low. The deal now allows them to profit from a potential substitute of their products, and become a major player in the exploding global cannabis industry.

Source: https://news.medicalmarijuanainc.com/tobacco-altria-invests-cannabis-cronos/

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