The (Forgotten) Deal
In December 2018, Cronos Group Inc. Announced C$2.4 Billion Strategic Investment from Altria Group, Inc.
Altria Group bought a 45 percent stake in leading cannabinoid company Cronos Group for about $1.8 billion.
Altria also has a warrant that would allow it to increase its stake in Cronos to about 55 percent at a price of $19 per share. It allows Cronos the flexibility to take investments from other companies such as, for example, a big food company.
“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 consumer,” Cronos CEO Mike Gorenstein said.
Its established U.S. presence should, therefore, serve to benefit Cronos, when cannabis is legalized federally. I suspect majority ownership will come into effect within the next 6-8 months.
“most important aspect of growth is going to be innovation and R&D; 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 (technology), and we look forward to continuing to differentiate in this area. As one of the largest holding companies in the adult consumer products sector, Altria has decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world.”
This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position the Company to compete, scale and lead the rapidly growing global cannabis industry.
We bring together leading extractors and farmers to add something better to our world: a high-quality, hemp-derived CBD made with your potential in mind.
Peace has always been committed to providing high-quality medicinal cannabis since the company was founded in 2013. We were the first non-incumbent company to be granted a medical cannabis production license by Health Canada, and we were also the first group licensed to sell medicinal cannabis oils (under the Access to Cannabis for Medical Purposes Regulations or ACMPR).
Carefully crafted Canadian-grown cannabis and terpene-rich extracts that give you a moment to stop and catch up with yourself.
Each better together, always and forever. Spinach™ is here for all the fun that only happens with friends. Where we grow closer by the experiences we share, and the moments made a little more epic whenever there’s legendary cannabis to go around.
Lord Jones manufactures and distributes the world’s finest hemp-derived CBD infused topicals and ingestibles. Lord Jones gumdrops and chews are made by hand in small batches with the finest ingredients and CBD extract derived from select hemp cultivated in the USA. Lord Jones High CBD Formula skincare products have been developed by a veteran team of personal care experts. Lord Jones Tinctures and Gel Capsules have been expertly crafted from simple ingredients. Our hemp-derived CBD oil retains the plant’s original terpenes and phytocannabinoids for broad and full spectrum formulations. All Lord Jones products are lab-tested to ensure proper purity and potency.
(As of May 2020, Cronos had spent one-quarter of the money it received from Altria. About half of this money went towards the $300 million purchase of Lord Jones CBD.)
Happy Dance™ is a line of premium CBD products made with moms in mind. Why moms? Because if anyone could use a little more calm in their routines, it’s moms. Co-founder Kristen Bell, beyond being an actor and singer, is a mom herself (or at least that’s what her kids keep telling her). Her personal experience with CBD skincare inspired her to create a brand that would help take care of the people who spend so much time taking care of everyone else.
The maker of Marlboro cigarettes
The maker of Copenhagen and Skoal.
Manufacturer of Black & Mild cigars. We have 35 percent ownership of JUUL Labs, Inc., the nation’s leading e-vapor company. Also, an 80% interest in Helix Innovations, which manufactures and markets on!, an oral tobacco-derived nicotine pouch product.
Technology & Innovation
Together with The Technion Research and Development Foundation, Cronos Group will explore the use of cannabinoids in regulating skin health and skin disorders. The research will utilize Technion’s cannabis strain database of over 80 cultivars and Cronos Group’s strain-specific cannabis oils to isolate and investigate the effects of individual and combinations of cannabinoids, for treatment of acne, psoriasis, and skin repair.
A GMP-compliant fermentation and manufacturing facility in Winnipeg, Canada. The state-of-the-art facility includes fully equipped laboratories covering microbiology, organic and analytical chemistry, quality control and method development. This facility is expected to provide Cronos Group with the ability to produce cultured cannabinoids at commercial scale with high-quality and high purity.
Cronos Group established a joint venture with a group of investors led by Bert Mucci, owner and operator of Mucci Farms, one of the most sophisticated greenhouse growers in North America. The Kingsville region is home to the largest concentration of greenhouses in North America and is commonly referred to as the “Sun Parlor,” since the area boasts one of the warmest climates in Canada. Cronos GrowCo is in the process of constructing a custom-built greenhouse designed to meet GAP and GMP requirements.
Cronos Group established a joint venture with Kibbutz Gan Shmuel, a commercial kibbutz and food company. Gan Shmuel exports to 35 countries across Europe and Asia, through Gan Shmuel Foods Ltd., and has over 1,000 agriculturally skilled kibbutz members who live on-site. Commencement of operations in Israel is subject to receiving the appropriate final cannabis cultivation and production licenses from the Israeli Ministry of Health and the cultivation and manufacturing facilities are expected to become operational in phases during 2020.
Cronos Group has established a joint venture with MedMen, one of the most recognized cannabis retail brands, to create MedMen Canada. This partnership holds the exclusive license to the MedMen™ brand in Canada.
Cronos Group established a joint venture with Agroidea (AGI) to create NatuEra, the cannabis industry’s first Contract Manufacturing Organization (CMO) in LATAM. As a CMO, NatuEra intends to allow the growing number of cannabis brands worldwide to outsource their development, cultivation, and/or manufacturing activities. NatuEra is expected to be the hub and platform through which Cronos Group will access the Latin American market. NatuEra holds licenses to cultivate non-psychoactive cannabis plants and manufacture derivative products, including for export. Construction of the GMP-standard facility has commenced, and construction is anticipated to be completed in 2020, subject to obtaining the relevant permits and other customary approvals.
Cronos Device Labs Bet
Cronos Device Labs is Cronos Group’s global center of research and development for vaporizer and device technology. The team has over 80 years of combined expertise in vaporizer development, and is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. Cronos Device Labs helps Cronos Group deliver expanded product offerings to customers, which are tailored for cannabinoid use.
Cronos Group entered into a landmark partnership to produce cultured cannabinoids at scale with Ginkgo Bioworks. Using biosynthesis as the means of production, Cronos Group and Ginkgo Bioworks will reduce the cost of pure cannabinoid production, create commercial scale and the ability to access rare cannabinoids, which are key to product differentiation and innovation. Cronos Group will have the exclusive right to use and commercialize the key patented intellectual property related to the production of the target cannabinoids perpetually and globally.
Cronos to sell lab-grown pot products in Canada this year:
The Cronos/Altria partnership is set to create a leading global cannabis platform, through Altrias proven expertise in brand and product development in highly regulated markets & Cronos unique R&D/production capabilities.
I strongly encourage everyone to do their own DD and come to your own conclusions. Imo, Altria/Cronos Group are poised for significant growth following US Legalization.
$CRON (initial) PT —> 35usd
Stay safe & GLTA
I am not a Financial Advisor, so please do your own DD. In my opinion, Altria & Cronos are poised for significant growth
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.