Altria Group Announces $2.4 Billion Strategic Investment in Cronos Group
Goodmans LLP acted for Altria Group, Inc. (NYSE:MO) (“Altria”) in connection with its agreement to acquire newly issued shares in Cronos Group Inc. (“Cronos Group”) (TSX: CRON and NASDAQ: CRON), a leading global cannabis company, headquartered in Toronto, Canada.
Pursuant to the transaction, Altria will acquire (i) a 45% equity stake in Cronos Group, at a price of C$16.25 per share, for an aggregate investment by Altria of approximately C$2.4 billion (approximately US$1.8 billion) and (ii) a warrant to acquire an additional 10% equity stake in Cronos Group at a price of C$19.00 per share exercisable over four years from the closing date. If exercised in full, the warrant would increase Altria’s ownership in Cronos Group to approximately 55%. This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry. The transaction is expected to close in the first half of 2019, subject to certain customary closing conditions.
Altria Group is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton, Nat Sherman, Nu Mark, Ste. Michelle Wine Estates and Philip Morris Capital Corporation.
Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across five continents.
Featured Work
-
Mergers and Acquisitions
Dayforce to be taken private by Thoma Bravo for US$12.3 billion
Goodmans LLP is advising Dayforce, Inc. as Canadian counsel in connection with its definitive agreement to be taken private by Thoma Bravo in an all-cash transaction with an enterprise value of… -
Mergers and Acquisitions
Dream Residential REIT to be acquired by Morgan Properties for C$491 million
Goodmans LLP is acting for the Special Committee of Dream Residential REIT in connection with its agreement to be acquired by Morgan Properties in an all-cash transaction for approximately C… -
Mergers and Acquisitions
SBA Communications to sell Canadian wireless tower business to CVC DIF
Goodmans LLP is advising SBA Communications in connection with its definitive agreement to sell its Canadian wireless tower business (SBA Canada) to CVC DIF, the dedicated infrastructure investment… -
Mergers and Acquisitions
RF Capital Group to be acquired by iA Financial Corporation in C$597 million all-cash transaction
Goodmans LLP is advising RF Capital Group in connection with its sale to iA Financial Corporation, a Quebec City-based insurance and wealth management company, in an all-cash transaction valued at… -
Technology
OverActive Media completes acquisition of KOI and Movistar Riders
Goodmans LLP acted as legal advisor to OverActive Media Corp. in connection with its strategic all-share acquisition of certain esports assets of Goatch Global, S.L. (operating as "KOI") and all of… -
Private Equity and Venture Capital
OMERS sells majority interest in CEDA to Hillcore Group
Goodmans LLP advised OMERS Private Equity Inc., a subsidiary of OMERS, in connection with the sale of its majority interest in CEDA to Hillcore Group…