“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth,” said Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer. “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. Importantly, Altria shares our vision of driving long-term value through innovation, and we look forward to continuing to differentiate Cronos Group in this area.”
Altria expects the cannabis category to experience rapid growth over the next decade. Participating in the cannabis category now will allow for Altria to diversify its product portfolio with products and investments outside of tobacco. Altria’s stock has fallen nearly 25 percent in 2018, making an investment in the cannabis industry one that could help the company as its expected to grow only 1 percent in 2018 and in 2019. News of the investment sent shares of Altria up by 2 percent and those of Cronos increased by more than 30 percent.
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