Cronos said Friday that the Richmond, Virginia, tobacco company will pay another $1.4 billion for warrants that if exercised, would give Altria a 55 percent majority ownership stake.
Cronos first murmured about Altria's potential takeover this week.
"Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth", Cronos Group CEO Mike Gorenstein said.
Major pot stocks have generally pulled back from their highs in recent weeks amid reports of supply shortages and complications with the sales process under the new regime.
U.S. traded shares of of Cronos Group Inc. jumped 22 per cent Friday.
After the deal is closed, Altria will have the right to nominate four directors, including one independent, to the Cronos board.
Marijuana, while still illegal on the federal level in the U.S., is allowed in an increasing number of states.
Coca Cola bottle and glass on picnic table
"When we were strategically planning how we would enter cannabis years ago, one of the companies that we looked at and had a lot of respect and admiration for was Altria", he said.
The deal is a "big endorsement" for Cronos and is "reassuring" for the industry, amid rising concerns that pot companies' valuations may be too lofty, Landry said.
In June, British tobacco giant Imperial Brands was among investors taking a stake in Oxford Cannabinoid Technologies, a United Kingdom-based medical cannabis startup. Cronos announced earlier this week that Altria could make a possible investment after Reuters reported the tobacco giant was in talks to acquire Cronos. The move will help it tap into a customer base outside cigarette smokers, as cigarette smoking declines in the U.S.
Cronos's Gorenstein said his company and Altria agree that developing brands and intellectual property is more valuable than growing plants and should be the focus going forward.
This will bring the megabucks investment up to the same level as the CAN $4bn (US $3bn / £2.3bn) which Constellation Brands spent earlier this year when they bought out Canopy Growth Corp., a cannabis producer also based in Canada.
Meanwhile, Molson Coors launched a joint venture called Truss with Quebec-based cannabis producer Hexo Corp.in October.
Gorenstein said that Altria has "decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world".
Aston Martin DB6 Transformed Into Electric Beauty
Given the success of the proof-of-concept build, the automaker said it should begin offering retrofits for customer cars in 2019. Electric conversions for classic cars are becoming more and more common, with the surgery relatively easy to complete.
Italy's Minister of Interior Matteo Salvini said on Twitter that Tuesday's operation had, in essence, decapitated the mob. The 46 others could face charges of belonging to the mafia , extortion and illegal possession of arms amongst others.
As reported by Telegraph Sport last month, City are eager to sign the reigning MLS goalkeeper of the year. The 23-year-old has completed his medical with the Citizens and will pen his new contract on Thursday.
Bush and is designating next Wednesday a national day of mourning in honor of the 41st president, the White House said Saturday. George Bush Snr had lunch with the Queen at Buckingham Palace in 1989, and they appeared relaxed in each other's company.
She said Chris acted "just cold as ice" to his wife, going as far as not responding to her when she spoke to him. Christopher Watts was serving multiple life sentences in Colorado but was transferred last week.
Vegas trails the division leaders Calgary Flames by five points and have the joint-best eighth record in the Western Conference. With Nate Schmidt back in the Vegas lineup after an early season suspension, the Knights' defense is at full strength now, too.
The current Panda has been around since 2011, and was originally awarded a four-star rating when it was new. Other safety equipment includes driver and passenger airbags, side head airbags, and side chest airbags.
The game will have a standard edition for $39.99; but there will also be a special edition, as detailed below. Fans had been speculating about the possibility of a Crash Team Racing remake since The N.
The trade is the second of it's kind for the struggling Cavaliers this season, who continue to unload veterans for future assets. Both Henson and Dellavedova, who won a title with the Cavs in 2016, have one year and about $10 million left on their contracts.
Additionally, Magic says "a significant prize pool [has been] set aside to partner with independent organizers". Magic: The Gathering Arena is Wizards of the Coast's answer to Blizzard Entertainment's Hearthstone .
It would have been nice to find out more beyond that, but until BioWare shows more, this is your lot for now. A new Dragon Age is coming it was announced at the Game Awards with the hash tag The Dread Wolf Rises.
The US PGA will also head to Texas, which will host it twice - in 2027 and 2034 - at the newly built courses in Frisco. The hotel, convention center, and other facilities are expected to open within six months after.
China launches probe to explore dark side of Moon
In this photo released by Xinhua News Agency, the Chang'e 4 lunar probe launches from the the Xichang Satellite Launch Center. China, which is investing billions in its military-run space programme, hopes to have a crewed space station by 2022.
Grace Millane: Police start murder inquiry
The last confirmed sighting of Grace is still 9.41pm Saturday night going into the CityLife Hotel, Beard said. She had booked to stay at the Base Backpackers hostel in central Auckland until 8 December.
Australia’s new anti-encryption laws are bad news for Apple
There are also worries that Australia's move could spur other government to adopt similar laws with perhaps less oversight. Mr Husic said this week's outcome was "not a ideal endpoint" and "there will be people who wonder why we did what we did".
You can now place your order for ItalDesign's Nissan GT-R50
That possibility turned quicker than you can say GT-R50 into reality and come December the order books for the auto are open. Not only that, but torque has gone up from 481 pound-feet (652 Newton-meters) to a whopping 575 lb-ft (780 Nm).
‘Counter-Strike: Global Offensive’ Danger Mode
As in other battle royale games, players must find weapons around the map and secure supply drops for special equipment. So basically, Valve has made a battle royale mode out of ordering from Amazon during the holiday season.
Joseph Seed Will Return In Far Cry New Dawn
The sequel nature of New Dawn is now confirmed, but, Ubisoft clarifies, it's not an official Far Cry 6 release. Both Guns and Fangs for Hire return, but they're all new due to the whole end-of-the-world thing.
Obsidian Unveils The Outer Worlds
Ultimately, you'll decide what sort of a character you'll be and the path you'll carve out in The Outer Worlds' "player-driven" story.