CRON stock fumbles today despite Cronos Group (TSX:CRON) (NASDAQ:CRON) finally closing its $2.4 billion investment from Altria Group (NYSE:MO), the maker of Marlboro cigarettes. This investment gives Altria 45% ownership interest in Cronos Group, so what's the problem here?
Cronos Closes Altria Deal
The Cronos Altria deal was first announced back in early December 2018, at which point CRON stock flew.
In addition to the closing of the investment, Cronos Group has expanded its board of directors from five to seven members. Altria has now nominated four new directors to the Cronos board group:
- Bruce Gates, Founding Partner of Three Oaks
- Murray Garnick, Executive VP of Altria
- Bronwen Evans, Independent Brand Strategist and Consultant
- Kevin Crosthwaite, Senior VP of Chief Strategy and Growth Officer
“We are pleased to welcome these new directors to the Cronos Group Board and look forward to benefitting from their experience and expertise as we continue our strategic growth and international development,” said Mike Gorenstein.
>> MedMen Stock Up 4% Today But Needs Much Bigger Boost for Comeback
The press release today also announced Cronos's newly appointed Chief Financial Officer (CFO) and Chief Commercial Officer (CCO). Jerry Barbato, formerly Senior Director of Corporate Strategy at Altria, will now be Cronos's new CFO. Cronos's former CFO, William Hilson, will serve as the company's new CCO. These new additions will likely boost Cronos Group's presence in the cannabis space.
CRON Stock in Red: What's Going On?
CRON stock has climbed +72% since the original announcement of the deal (December 7th, 2018).
Today, however, CRON is trading down on both the NASDAQ and TSX. This past week has been rough for pot stocks, and that might be to blame for the company's falling shares. Despite the positive news on closing the Altria deal, CRON stock continues to drop as the morning progresses.
According to Yahoo Finance, CRON is currently trading on NASDAQ at $21.60 a share, down $0.71 (-3.16%). On the TSX, CRON stock is trading at $29.00 a share, down $1.00 (-3.33%).
Featured Image: Canva
