By Allison Prang
Altria Group Inc., the parent of tobacco company Philip Morris USA Inc., said it is taking a 45% stake in Canadian cannabis company Cronos Group Inc.
Altria is taking the position for $1.8 billion, or 2.4 billion Canadian dollars. The company is buying Cronos shares for C$16.25 Canadian a share.
Altria has a warrant to buy more Cronos shares at C$19 a share and could grow its total stake to 55%. The company can use the warrant for four years starting after the deal closes, Altria said.
Cronos’ board will being expanded from five directors to seven and as part of Altria’s investment. Altria will get to nominate four…