Aphria (APH.TO 15.15%) sharesjumped 15.15 per cent - or $2.64 - to close at $20.06 on Wednesday, following the Globe and Mail report, which cited unidentified sources who said Altria has expressed an interest in acquiring a minority stake in the cannabis producer but talks could still fall through. Altria shares jumped as much as 2.2 per cent on the news, but closed the day down 0.30 per cent - or 19 U.S. cents - at US$62.91.
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Globe says Aphria in talks with dudes from Marlboro
Aphria Inc (C:APH)
Shares Issued 248,279,078
Last Close 10/10/2018 $20.06
Thursday October 11 2018 - In the News
Shares Issued 248,279,078
Last Close 10/10/2018 $20.06
Thursday October 11 2018 - In the News
The Globe and Mail reports in its Thursday edition that U.S. tobacco giant Altria Group is in talks to acquire an equity stake in cannabis grower Aphria. The Globe's Christina Pellegrini and Marina Stauss write that details of Altria's proposed investment in Aphria are still being finalized. Sources tell The Globe that Altria has expressed an interest in acquiring a minority stake in the grower, which is based in Leamington, Ont., with the intention of eventually holding a majority of the company's shares.
The sources cautioned that it could take time for the two companies to strike a deal and that talks could still fall through. With a market capitalization of $119-billion (U.S.), Virginia-based Altria makes tobacco, cigars and wine. It owns Philip Morris USA, the maker of Marlboro cigarettes, and has a significant stake in Anheuser-Busch InBev SA/NV, the world's largest brewer.
Meanwhile, Aphria jumped $2.64 Wednesday to close at $20.06 for a $5-billion market valuation. The most recent in-person discussions took place in Canada on Monday. Big consumer companies are helping fuel a buying frenzy and driving stock prices higher as Canada prepares for the legalization of recreational marijuana next Wednesday.
© 2018 Canjex Publishing Ltd.
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Canadian cannabis stocks jumped after spending most of the day in the red,. rising after a report that tobacco company Altria Group Inc. is in talks to acquire a stake in Aphria Inc.
Aphria (APH.TO 15.15%) sharesjumped 15.15 per cent - or $2.64 - to close at $20.06 on Wednesday, following the Globe and Mail report, which cited unidentified sources who said Altria has expressed an interest in acquiring a minority stake in the cannabis producer but talks could still fall through. Altria shares jumped as much as 2.2 per cent on the news, but closed the day down 0.30 per cent - or 19 U.S. cents - at US$62.91.
Altria (MO.N 0.30%) said in September that while it intends to “continue to comply with federal law,” it was exploring options and was “mindful of the possibility that in the future cannabis may no longer be illegal under federal law.” Representatives for Altria declined to comment on the report; Aphria couldn’t immediately be reached for comment.
Aphria responded to a request from the Investment Industry Regulatory Organization of Canada on Wednesday, stating that "there is no agreement, understanding or arrangement in place with a potential investor at this time."
Philip Morris International, citing potential risks to its reputation and regulatory hurdles, recently said it had no plans to enter the cannabis business.
In the wake of the report, the Horizons Marijuana Life Sciences Index ETF (HMMJ.TO), the largest exchange-traded fund that tracks the cannabis industry, gained 2.5 per cent. Canopy Growth Corp. (WEED.TO 0.52%) added 2.3 per cent and Aurora Cannabis Inc. (ACB.TO 0.83%) rose 1.6 per cent.
- with files from BNN Bloomberg