Yes, we all know this is not a surprise.
One of the biggest tobacco companies in North America announced the first investment to the Cannabis space the in form of 1.8 billion dollars, CNN reported.
Cronos group is an ontario-based cannabis producer, which is now 45 percent owned by Altria. It has the option to increase its shares to 55 percent over the next five years.
Cronos explained that the partnership will give additional financial resources regulatory expertise and product development and commercialization. This will let the companie tap into the international market.
“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,” Cronos CEO Mike Gorenstein said in a press release.
Cronos Group Inc. Announces C$2.4 Billion Strategic Investment from Altria Group, Inc
Canopy Growth Investment
“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.”
Because of the legal ambiguity is the US the big companies are moving to the north where the booming market is legal.
Constellation Brands, the brewer of Corona beer invested $4 billion in Canada’s Canopy Growth earlier this year, which is the largest investment into the cannabis space, so far.