That’s right! News has just begun hitting the wires that Altria (MO) is in “early talks” to acquire Canadian cannabis producer Cronos Group (CRON). This was tipped by a person familiar with the matter.
The Marlboro cigarette maker seeks to bring a more diverse model to the industry, taking advantage of the great opportunity the legal marijuana industry is presenting. Though Cronos has not agreed to any deal nor is there certainty that it will pursue such a deal, markets are abuzz with attention on what could be the next big industry event tying “traditional corporations” to cannabis companies.
If you remember earlier this year and late last year companies like Constellation Brands, Molson Coors, and even Coca Cola either were closely observing the industry and/or making meaningful investments into companies within the cannabis marketplace.
Late Monday night Cronos Group Inc. (CRON) confirmed that it is in talks to receive a potential investment from Altria Group Inc. (MO) according to updates from Reuters. Cronos said, “no agreement has been reached and “there can be no assurance such discussions will lead to an investment or other transaction involving the companies.”
This news, however, has been a very positive event heard across the industry, which has also helped to boost positive sentiment within the market.