Altria Subsidiary Abandons Expiring Cronos Warrant, Keeps Initial Investment

By Chris Wack

Altria Group Inc. said Monday that its wholly owned Altria Summit subsidiary has notified Cronos Group Inc. of its irrevocable abandonment of its warrant to purchase additional shares of Cronos and all rights that it may have held in the warrant or any common shares underlying the warrant for no consideration.

In March 2019, Altria acquired, through its subsidiaries, a 45% ownership interest in Cronos and the warrant.

The warrant was exercisable until March 8, 2023. Prior to abandonment, Altria, through its subsidiaries, owned 156.6 million shares, or 41%, of Cronos. By fully exercising the warrant, Altria could increase its ownership by 84 million shares.

As a result of the warrant abandonment, Altria expects to claim a capital loss of $483 million on its U.S federal consolidated income tax return for 2022. Altria continues to own 156.6 million shares of Cronos.

Altria, through its subsidiaries, holds the Cronos shares for investment purposes. Altria will continue to evaluate Cronos's business and prospects and all other factors it deems relevant in determining whether it or its affiliates will acquire additional shares or dispose of Cronos shares in the open market, in privately negotiated transactions or otherwise.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

December 19, 2022 08:58 ET (13:58 GMT)

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