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HomeMarketAltria to claim $483 mln capital loss on cannabis company ownership stake

Altria to claim $483 mln capital loss on cannabis company ownership stake

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Altria Group Inc.
MO,
+0.62%
said Monday it will continue to evaluate prospects of cannabis company Cronos Group Inc.
CRON,
-2.28%
on whether it will acquire additional common shares of Cronos or dispose of them in the open market, in privately negotiated transactions with Cronos or third parties. Altria expects to claim a capital loss of $483 million on its U.S federal consolidated income tax return for 2022, related to its stake in Cronos Group. Altria continues to own 156.57 million common shares of Cronos. The tobacco giant said it notified Cronos Group Inc. of its abandonment of its warrant to purchase additional common shares of Cronos. In 2019, Altria acquired a 45% ownership interest in Cronos and the warrant, which is exercisable until March 8 at an exercise price of C$19 per common share. The closing share price of Cronos common shares on Friday was C$3.81. The stock has not traded above C$6 over the past 12 months. “Given the Cronos trading levels and the March 2023 expiry of the warrant, Altria elected to abandon the warrant,” Altria said. Shares of Altria rose 0.2%. Cronos shares rose 1% in premarket trades.

Credit: marketwatch.com

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