Altria-backed cannabis producer Cronos explores sale

  • 📰 Reuters
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 97%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Cronos Group Inc , the Canadian cannabis producer backed by cigarette maker Altria Group Inc , confirmed on Thursday it is in talks with potential buyers to explore a sale of the company, after Reuters reported on the talks.

Cronos is working with a financial adviser to handle expressions of interest in a deal from other companies, including U.S.-based peer Curaleaf Holdings IncThe sources requested anonymity because the discussions are confidential, and they cautioned that no transaction is certain.Curaleaf declined to comment. Spokespeople for Altria did not immediately respond to a request for comment.

Shares of Cronos jumped as much as 25% in Toronto on the news, before giving back all gains and closing lower at $1.88, giving it a market value of C$954.62 million . So far this year, the shares have lost a quarter of their value. The future of the cannabis industry is uncertain as more favorable regulatory regimes in North America have fueled fierce competition among more companies.. Growing and selling marijuana remains illegal under U.S. federal law, although President Joe Biden's administration has signaled it is seeking a review on how the drug is classified.making it easier for the industry to access banking services.

For the first quarter, Cronos posted a net loss of $19.3 million, compared with a loss of $32.7 million a year ago. 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.Reporting by Anirban Sen in New York; Additional reporting by Abigail Summerville in New York; Editing by Leslie Adler, Richard Chang and David GregorioAnirban Sen is the Editor in Charge for U.S.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cronos Group stock rises in premarket as it confirms merger talksCronos Group Inc. stock is up nearly 6% in premarket trades on Friday after the Canadian cannabis company said it’s reviewing unsolicited indications of...
Source: MarketWatch - 🏆 3. / 97 Read more »