CRON Stock: Soaring After News of Potential Altria Deal

Cron Stock

Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) and the CRON stock are trending today in the cannabis media. This morning, CRON is trading high on the Nasdaq exchange after news surfaced yesterday around a potential deal between the cannabis company and Altria Group, Inc. (NYSE:MO).

CRON Stock Rising After Altria Announcement

Cronos Group is a cannabis investment firm located in Toronto, Ontario. The investment firm seeks to invest in companies that are licensed to produce medical marijuana. Cronos focuses its investing efforts on cannabis companies in Canada.

Yesterday, Cronos Group officially confirmed its discussions with Altria Group regarding a potential future investment.  Through its subsidiaries, Altria manufactures and sells cigarettes, smokeless products, and wine in the US. The company offers cigarettes under the popular Marlboro brand. This is the first announcement of Altria exploring diversification. In the announcement released yesterday by Cronos, the cannabis company wanted to reiterate:

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“No agreement has been reached with respect to any such transaction and there can be no assurance such discussions will lead to an investment or other transaction involving the companies.”

As a result of the news, CRON stock has been trading high for the past two days. Yesterday, Cronos shares shot up over 26% when the market opened. Today, the stock has continued its upward trend. While the partnership isn’t actually confirmed, it’s a step in the right direction for the former pharmaceutical investment firm.

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CRON Stock Movement

According to Yahoo Finance, CRON is currently trading at $10.93 a share on the Nasdaq exchange, up +$0.76 (+7.47%). On the Toronto Stock Exchange, Cronos shares are currently trading at $14.38 a share, up +$0.87 (+6.44%).

Altria is also benefiting from the news. On Monday at the bell, the tobacco stock shot up 1.5%. At press time, MO is currently trading at $56.12 a share, up +$0.39 (+0.70%). This partnership could benefit both entities; we shall see if the deal will actually close.

Featured Image: Depositphotos/© Alexmit