By Robb M. Stewart


Shares of Cronos Group Inc. were under pressure Monday after the Canadian cannabis company was notified that a unit of Altria Group Inc. had abandoned a warrant allowing it to boost its stake in Cronos.

On the Toronto Stock Exchange, Cronos shares were 4.1% lower at 3.75 Canadian dollars ($2.74), for a year-to-date drop of 25%.

Before abandoning its warrant, Altria held about 41% of Cronos common shares. The warrant would have allowed Altria to raise its holdings to about 52% common shares.

In 2019, Altria bought a 45% ownership stake in Cronos and a warrant to buy up to 84.2 million additional shares, exercisable through March 8, 2023, at a price of C$19 a share.

Altria, which expects to claim a capital loss of $483 million on its U.S federal consolidated income tax return for 2022, said Cronos shares haven't traded above C$6 over the past 12 months.

Altria said it continues to own 156.6 million shares of Cronos for investment purposes.


Write to Robb M. Stewart at


(END) Dow Jones Newswires

December 19, 2022 12:21 ET (17:21 GMT)

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