Canadian cannabis grower Aphria (APHQF) is on the rise after a news report said Altria Group (MO) is in talks to acquire a minority equity stake in the company. Sources told the Global and Mail that the U.S. tobacco giant may eventually hold a majority of the company’s shares. MINORITY STAKE IN APHRIA: Altria Group is said to be in talks to acquire an equity stake in Aphria, according to the Global and Mail, citing people familiar with the matter. Details of the proposed investment are still being finalized, sources noted, adding that Altria has expressed an interest in acquiring a minority stake in the cannabis grower with the intention of eventually holding a majority of the company’s shares. Further, the report said Altria executives have met with Aphria’s management on several occasions, but it could take time for the two companies to strike a deal. Aphria is a low-cost cultivator of marijuana. WHAT’S NOTABLE: Back in August, Constellation Brands (STZ) announced it was increasing its ownership interest in Canada’s Canopy Growth (CGC) to 38% by acquiring 104.5M shares, with the option of raising its stake further to 50%. As a result, Canopy Growth will “immediately upon closing have proceeds of approximately C$5B to bolster its leadership position in the global cannabis industry,” the companies stated. Other publicly traded companies in the cannabis space include Aurora Cannabis (ACBFF), CV Sciences (CVSI), Cronos Group (CRON) and Tilray (TLRY). PRICE ACTION: In afternoon trading, shares of Altria are fractionally up to $63.15, while Aphria’s stock trading in New York has jumped almost 17% to $15.65.
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