Cronos Group (TSX: CRON) jumped as much as 20% in mid-day trading today following the release of a rumor by Reuters that the Altria Group (NYSE: MO) backed cannabis producer might be exploring a sale.
The exploration of a sale is said to follow the attraction of acquisition interest from peers in the industry, including Curaleaf Holdings (CSE: CURA). The company is said to be working with a financial advisor to examine the interest received from the multistate operator.
Both cannabis operators reportedly refused to comment on the rumor, while the source of the rumor requested anonymity due to the confidential nature of the discussions.
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Whether an offer ultimately surfaces remains to be seen, with no mention being made of the price to be paid. At last count, Cronos had a market value of approximately C$972 million, although that has fluctuated since the report initially came out.
Cronos Group last traded at $2.70 on the TSX.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
