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Marlboro Maker Investing $2.4 Billion In Marijuana Market

Smoke_A_Lot

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ICMag Donor
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NEW YORK (CBS/AP) — As the marijuana industry continues to grow in Massachusetts, one of the world’s biggest tobacco companies is diving into the cannabis market with a $2.4 billion buy-in.

Marlboro maker Altria Group Inc. is taking a 45 percent stake in Cronos Group, the Canadian medical and recreational marijuana provider said Friday.

Altria will pay another $1.4 billion for warrants that if exercised, would give the Altria a 55 percent ownership stake in the Toronto company.

That would mean Altria’s investment would be in the same league as the $4 billion spent earlier this year by Constellation Brands to acquire shares of Canopy Growth Corp., another Canadian pot producer.

The August investment by Constellation, which makes Corona and other beverages, was the largest to date by a major U.S. corporation in the cannabis market.

Whatever hesitation larger corporations in the U.S. had about entering the cannabis market appears to be fading if there is a financial justification.

Related: Police Train To Spot Drivers Who Are High On Marijuana

Two pot shops are open Northampton and Leicester. NETA and Cultivate have totaled $4.8 million in gross sales since opening last month, according to the Cannabis Control Commission. Three more retailers in Salem, Wareham and Easthampton have secured their final licenses to sell recreational marijuana.

Altria’s huge investment lit up shares of cannabis companies that have begun to set up shop in Canada, where recreational use was legalized this year.

Shares of Cronos Group Inc. jumped 31 percent and neared an all-time high at the opening bell Friday.

Rapid growth in the cannabis market is expected to continue as legalization expands in the U.S. and social norms change. On Tuesday, ultra-conservative Utah became the latest state to legalize marijuana use for medical purposes.

Consumers are expected to spend $57 billion per year worldwide on legal cannabis by 2027, according to Arcview Market Research, a cannabis-focused investment firm. In North America, that spending is expected to grow from $9.2 billion in 2017 to $47.3 billion in 2027.

(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
 

PDX Dopesmoker

Active member
Related: Police Train To Spot Drivers Who Are High On Marijuana

Now that pots legal the tax fattened cops start looking for an excuse to hassle safe drivers and take their cash while acting like they're doing everyone a big favor in the process
steadmanillustration7.jpg
 
S

Sertaiz

yup. legal limits in your body, maybe they will just have a drone come mosquito some juice out the ol juicebox for analyzing if you drive too slow.
grow yer own and share.
 

rolandomota

Well-known member
Alcohol industry was first with the 4 billion in August by constellation they make Corona brand beer, marijuana is making its first billionaires ......wow trippy
 

perismoke

Member
I like Cronos..(CRON) having trouble breaking through $22 and (CGC) Canopy Growth with its higher profile...but its not a slam dunk road to riches.
I just like immersing myself in it all..why not grab some stock too.
I DO have some reservations about THC infused alcoholic beverages...Don't you??
 

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