Proactiveinvestors USA & Canada Altria Group, Inc. https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Altria Group, Inc. RSS feed en Thu, 20 Jun 2019 00:52:55 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Altria in investment talks with Canadian cannabis company Cronos ]]> https://ca.proactiveinvestors.com/companies/news/210485/altria-in-investment-talks-with-canadian-cannabis-company-cronos-210485.html Altria Group Inc (NYSE:MO), the maker of Marlboro cigarettes, is in initial discussions to either take a stake in or possibly acquire the Canadian cannabis company Cronos Group Inc (NASDAQ:CRON) as it looks to widen its business beyond traditional tobacco.

In a statement released late Monday, Cronos confirmed it is engaged in discussions concerning a potential investment by Altria. But the company said no agreement has been reached “with respect to any such transaction”.

“There can be no assurance such discussions will lead to an investment or other transaction involving the companies,” Cronos said.

READ: Tobacco powerhouse Altria in talks to acquire equity stake in Canadian cannabis grower Aphria, says The Globe and Mail

The legalization of marijuana by Canada this year is prompting renewed interest in investment in the country’s cannabis companies. And news of the discussions between Altria and Cronos come on the heels of the US alcohol beverage group Constellation Brands, which sells Corona Beer, completing a C$5 bn (US$4bn) investment in the Canadian cannabis company Canopy Growth.

A deal between Altria and Cronos would be interesting as it would represent one of the first combinations of an old-school tobacco company, which is looking to offset a decline in smoking rates and an upstart cannabis company.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Altria is also reported to be weighing an investment in the e-cigarette maker Juul in another bid to widen its repertoire of smoking products beyond cigarettes. And earlier this year, reports surfaced that Altria had contemplated taking a stake in Aphria, another Canadian cannabis producer.

While the tobacco sector is coming under pressure due to diminished demand for cigarettes, interest in cannabis and e-cigarettes is on the rise.

Cronos shares jumped by 10% in Tuesday’s pre-market session to $11.20 while Altria shares nudged up by 0.5% to $56.00.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Tue, 04 Dec 2018 08:03:00 -0500 https://ca.proactiveinvestors.com/companies/news/210485/altria-in-investment-talks-with-canadian-cannabis-company-cronos-210485.html
<![CDATA[News - Tobacco powerhouse Altria in talks to acquire equity stake in Canadian cannabis grower Aphria, says The Globe and Mail ]]> https://ca.proactiveinvestors.com/companies/news/206827/tobacco-powerhouse-altria-in-talks-to-acquire-equity-stake-in-canadian-cannabis-grower-aphria-says-the-globe-and-mail-206827.html US tobacco giant Altria Group Inc (NYSE:MO) is in talks to acquire an equity stake in the Canadian cannabis grower Aphria Inc (OTCMKTS: APHQF), per a report in The Globe and Mail.

Details of the stake are still being finalized, according to The Globe and Mail, which reported that sources said Altria had expressed an interest in acquiring a minority stake with the intention of eventually holding a majority of the company’s shares.

Altria and Aphria's management have met on a number of occasions, with the most recent talks arranged on Monday, G&M said, citing sources.

Aphria shares are trading 14.5% higher at $15.35 while Altria shares are flat at $63.57 in Wednesday's afternoon trading session.

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Wed, 10 Oct 2018 14:47:00 -0400 https://ca.proactiveinvestors.com/companies/news/206827/tobacco-powerhouse-altria-in-talks-to-acquire-equity-stake-in-canadian-cannabis-grower-aphria-says-the-globe-and-mail-206827.html
<![CDATA[News - New twist in e-cigarette saga as start-up Juul gets surprise raid from FDA ]]> https://ca.proactiveinvestors.com/companies/news/206231/new-twist-in-e-cigarette-saga-as-start-up-juul-gets-surprise-raid-from-fda-206231.html The e-cigarette debate in the US took a new twist Tuesday as the US Food and Drug Administration showed up at start-up firm Juul's headquarters in Silicon Valley to seize "thousands of pages" of marketing material.

The vape firm is the e-cigarette market leader with about 73% of the share in the US and has been at the centre of the FDA's attention this year as e-cigarette use soars among teens.

The raid today was a surprise one for Juul, whose headquarters are in San Francisco.

Conventional cigarette- making global giants like British American Tobacco (LON:BATS) and Altria Group (NYSE:MO) saw shares rise in recent weeks as the FDA threatened to pull certain electronic cigarettes from the shelves if firms like Juul did not address concerns around teenage use.

The inspection today "sought further documentation related to Juul's sales and marketing practices, among other things," the FDA reportedly said in a statement.

Juul chief executive Kevin Burns said the company had walked the FDA through "every part" of its business.

E-cigarettes have become something of a craze among high school teenagers, of which about 20% are users. But opponents say it has led to a large rise in teen nicotine use after years of cigarette smoking among teens dropping to record lows.

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Tue, 02 Oct 2018 14:49:00 -0400 https://ca.proactiveinvestors.com/companies/news/206231/new-twist-in-e-cigarette-saga-as-start-up-juul-gets-surprise-raid-from-fda-206231.html