The stock of Cronos, the Canadian marijuana producer, rose 11.15 per cent on Monday, after it was reported that the U.S. tobacco company was looking to acquire it. Cronos’ gains bucked the wider Monday trend—the Horizons Marijuana Life Sciences ETF had fallen 2.97 per cent by the time the markets closed. Leading the drop was Aphria, a Canadian pot producer, which Gabriel Grego, founder of Quintessential Capital Management, claimed on Monday had paid inflated prices for firms in Argentina, Colombia and Jamaica linked to a company insider. Aphria said the allegations were “false and defamatory.” (CBC)
Talking point: Cigarette makers and tobacco middlemen have been diversifying into the marijuana market, as the number of people smoking conventional sticks continues to decline. So have alcohol companies like Constellation, which now owns more than a third of Canopy Growth Corp.