Altria Group Inc. Chief Financial Officer Billy Gifford said the tobacco company is happy with its investment in Canadian cannabis company Cronos Group Inc. and highlighted a recent deal that will bring it into the U.S. CBD sector. On the company's earnings call with analysts, Gifford said Cronos is making progress and executing on its growth strategy. Cronos closed on the acquisition of Redwood Holding Group LLC in the third quarter, giving it a line of CBD-based skincare and other consumer products that are sold online and through retail partners in the U.S. under the Lord Jones brand. "We believe the acquisition fits well into Cronos' strategy of building differentiated brands and disruptive and intellectual property," said the executive, according to a FactSet transcript. "We are very excited about the future prospects of the cannabis industry and the opportunity for Cronos to position itself for long-term leadership." Altria acquired a 45% stake in Cronos in December of 2018 for $1.8 billion. Altria shares were down 0.5% on Thursday and have fallen 7% in 2019, while the Dow Jones industrial Average has gained 21%. Cronos U.S.-listed shares were down 2.2% and have fallen 22% in 2019, while the ETFMG Alternative Harvest ETF has fallen 23%. Read More...
Altria Group Inc. Chief Financial Officer Billy Gifford said the tobacco company is happy with its investment in Canadian cannabis company Cronos Group Inc. and highlighted a recent deal that will bring it into the U.S. CBD sector. On the company’s earnings call with analysts, Gifford said Cronos is making progress and executing on its growth strategy. Cronos closed on the acquisition of Redwood Holding Group LLC in the third quarter, giving it a line of CBD-based skincare and other consumer products that are sold online and through retail partners in the U.S. under the Lord Jones brand. “We believe the acquisition fits well into Cronos’ strategy of building differentiated brands and disruptive and intellectual property,” said the executive, according to a FactSet transcript. “We are very excited about the future prospects of the cannabis industry and the opportunity for Cronos to position itself for long-term leadership.” Altria acquired a 45% stake in Cronos in December of 2018 for $1.8 billion. Altria shares were down 0.5% on Thursday and have fallen 7% in 2019, while the Dow Jones industrial Average has gained 21%. Cronos U.S.-listed shares were down 2.2% and have fallen 22% in 2019, while the ETFMG Alternative Harvest ETF has fallen 23%.
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