Globe says Altria mulled deals with Aphria, Canntrust

Aphria Inc (C:APHA)
Shares Issued 249,751,622
Last Close 12/7/2018 $6.93

Monday December 10 2018 - In the News

Also Canntrust Holdings Inc (C:TRST) In the News
Also Cronos Group Inc (C:CRON) In the News

The Globe and Mail reports in its Saturday, Dec. 8, edition that Marlboro cigarette maker Altria Group's interest in Cronos Group could restore confidence in Canada's nascent cannabis sector. The Globe's Christina Pellegrini writes that Canadian pot stocks have been crushed in recent weeks after a lacklustre start to recreational sales amid reports of countrywide supply shortages. Last week, Aphria was defending itself against accusations of striking deals to enrich insiders made in a widely read short-sellers' report. Investors, meanwhile, have been pouring money into cannabis companies that operate in multiple American states, pivoting away from Canada. Canaccord analyst Matt Bottomley says,

 "We believe an investment of this magnitude provides overall legitimacy to the industry as a whole and should represent a positive catalyst for the sector, with the news likely to drive valuations higher." Unnamed sources say Altria also weighed making investments in other growers, such as Aphria and CannTrust Holdings. Altria will nominate four directors to Cronos's board, which will increase to seven directors from five. The deal is expected to close in the first half of 2019.

© 2018 Canjex Publishing Ltd.