Canadian cannabis company Cronos Group Inc. — which is backed by cigarette maker Altria Group Inc. — is reportedly in discussions to sell the company.
Report: Canadian Cannabis Company Cronos Exploring Sale
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Canadian cannabis company Cronos Group Inc. is in discussions to sell the company, Reuters reports. The company is backed by cigarette maker Altria Group Inc., which owns Philip Morris USA, U.S. Smokeless Tobacco Company, and other brands.
In a statement to Reuters, Cronos said it “is in the initial stages of reviewing these indications of interest.”
The discussions remain confidential, and no transaction is certain, the report says.
For the first quarter of the year, Cronos posted a net loss of $19.3 million, compared with a $32.7 million loss a year ago, while the company’s net revenue declined 20% to $20.1 million. Cronos has total cash, including short-term investments, of about $836.43 million, according to its first-quarter report outlined by Reuters.
Altria holds a 41% stake in Cronos and first invested $1.8 billion in the company in 2019.
According to the report, U.S.-based cannabis company Curaleaf Holdings has expressed interest in the company but has not commented on whether those rumors are accurate.
Cronos is publicly traded and its stock price fell 4.08% by the end of trading on Thursday. Its price was up in pre-market trading by .53%.
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