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Marlboro is investing $ 1 billion in Cannabis, which is to grow in Israel

The world's most famous cigarette manufacturer has acquired 45 with an option to expand to 55% of the Canadian cannabis company Kronos, which is expected to grow Cannabis in Israel in accordance with an agreement signed with Kibbutz Gan Shmuel. 'We will produce quality cannabis in Israel at the best price in the world,' says Kronos' founder.

Altria, the owner of Phillip Morris and the Marlboro cigarette brand, acquired 45 from the Canadian cannabis company Kronos, which has an agreement to grow cannabis at Kibbutz Gan Shmuel in Israel.

For 45% of the company and 4 of 7 seats on the Board of Directors, 1.8 transferred $ 1 billion to Kronos.

In addition, Altria received an option to acquire full control of the Company (55), further to 1.4 billion. The value of Kronos shares rose after the announcement by 25%.

Mike Gorenstein Kronos
"We will produce quality cannabis in Israel at the best price in the world" - Mike Gorenstein,

The rumors about the entry of the world's most famous cigarette manufacturer into the cannabis market Were dispersed Already three months ago and are now official.

Altria Group also owns the shares of the alcohol giant Anheuser-Busch, a manufacturer of beer brands such as Stella, Lef, Budweiser and Hogarden.

Kronos also holds full and partial ownership of Canadian companies in the field of cannabis, such as Peace Naturals, In The Zone, WMMC, ABcann, Hydropothecary, Evergreen and more.

"Altria brings weight, experience and special capabilities," said after the signing of the agreement the founder and CEO of Kronos, the Jew Mike Gorenstein.

Last year, with The message For his partnership with Kibbutz Gan Shmuel, Gorenstein said he intends to "produce quality cannabis in Israel at the best price in the world."

According to the memorandum of understanding signed between Kronos and Gan Shmuel, a greenhouse will be built on the site of the kibbutz, which will cover an area of ​​4 dunams and will produce up to 5 tons of cannabis annually, alongside a research laboratory.

"Not only will we produce quality cannabis at the best price in the world, setting up the system in Israel will enable us to stand on the international front of research and entrepreneurship in the field," said Gorenstein.

Kronos, like many other companies, is waiting for the Israeli government to approve the export of medical cannabis from Israel abroad, as well as the entry into force of the reform, apparently in April.

This deal joins a significant deal earlier in the field, when the world's largest cannabis company, Knuffy, also won Last November For an investment of 200 million for 9.9% of its shares in Constellation Brands. 8 months later Acquired Constellation 30% more than Knofi, for about 4 billion.

Canada has approved full legalization of cannabis for recreational use and in October this year opened legal factories and cannabis shops.

Cannabis fines

(Starting with 1 in April 2019)

Based on a figure revealed by Minister Erdan. Police refuse to reveal official figureDetails here)

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