Altria Group will invest USD 1.8 billion (EUR 1.579 billion) in acquiring a 45 per cent stake in the Canadian cannabinoid company Cronos Group, Altria said in a press release.

Altria Group, the largest cigarette maker in the country and owner of Philip Morris USA, said it had entered into an agreement to acquire newly issued shares in Toronto-headquartered Cronos Group, a cannabis company with a presence across five continents.
The transaction represents a 45 per cent equity stake in the company at a per share price of CAD 16.25 per share (EUR 10.69). As part of the agreement, Altria said it will have the right to nominate four directors to serve on the Cronos Group Board, including one independent director, and that it will have a warrant for a period of four years to acquire an additional ownership stake in Cronos Group at a share price of CAD 19 per share. If fully exercised, the warrant means Altria could acquire a further 10 per cent of the Group, meaning it would hold a roughly 55 per cent stake in the company.
Howard Willard, chairman and chief executive officer of Altria, said, “Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria […] We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realise its significant growth potential,” Willard said.
Altria noted the 6 December reference exchange rate of CAD 1 being equal to USD 0.747.