Big changes happening in the cannabis market with many saying that Big Tobacco companies moving in are creating the new Big Marijuana.
The Board of Directors of Cronos Group after consultation with its legal and financial advisors, has unanimously determined that the Transaction is in the best interest of Cronos Group and is unanimously recommending that Shareholders vote in favor of the Transaction.
Cronos Group sees that with the distribution provided to them from Altria they will finally be able to actually sell all the marijuana that they produce.
At current the production of marijuana far exceeds the amount that Cronos Group is managing to sell on the open market.
“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth.”
From Cronos Group’s Mike Gorenstein, Chairman, President and Chief Executive Officer.
“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.
With the experience that Altria brings to the table, improved production methods and, most importantly, distribution. Cronos Group could benefit greatly from this move and grow the company at a far accelerated rate over the months and years ahead.
In as far as Altria benefiting. Big tobacco has wanted to get involved in marijuana since it’s first inception. Put off only at first by the legal status that now changed in Canada and also many states in the US, changes everything and they are ready to move into marijuana.
“Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,”
said Altria’s Chairman and Chief Executive Officer, Howard Willard.
“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.”
We will have to see how this new partnership takes form and how the shareholders of both companies will benefit from this investment.
At current Cronos Group stock has begun to edge upward from this transaction and other positive news about the marijuana business in the near future.