- The maker of Marlboro cigarettes is reportedly in talks to buy a minority stake in Canadian cannabis producer Aphria, according to Globe & Mail.
- Shares of Aphria rallied more than 16% on the news.
- An Altria spokesperson declined to comment on rumors and speculation, and Aphria didn't immediately respond to a request for comment.
- Watch Altria and Aphria trade in real time here.
Aphria, a Canadian-based cannabis producer, rallied more than 16% Wednesday after a report said that Altria, the maker of Marlboro cigarettes, was in talks to buy a minority stake in the company, the Globe & Mail reported, citing unidentified people familiar with the matter.
According to the Globe & Mail, Altria has expressed an interest in acquiring a minority stake — with the intention of eventually holding a majority of Aphria’s shares — but details of the proposed investment are still being finalized, and talks could still fall through.
An Altria spokesperson declined to comment on rumors and speculation. Aphria didn't immediately respond to a request for comment.
Wednesday's report is the latest in a series of moves the tobacco industry is making in an effort to enter the cannabis space.
In June, Imperial Brands, one of the world's largest tobacco giants, teamed up with the rapper Snoop Dogg's cannabis-focused venture firm, Casa Verde Capital,to invest in medical cannabis research.
But its not just tobacco companies that are getting into the cannabis game. Beverage makers have also been entering the industry.
In August, Constellation Brands, the beverage maker behind Corona beer and Svedka vodka, announced a $4 billion investment in the Canadian cannabis producer Canopy Growth, giving it a 38% stake once the deal is complete.
And in September, Coca-Cola reportedly held talks with Aurora Cannabis to develop beverages infused with CBD, one of the nonpsychoactive compounds found in cannabis.
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