Canadian cannabis producer Aphria Inc. is on the rise Wednesday afternoon as rumors spread that the company is in talks with Altria. Shares of Aphria opened at $17.31 and is now breaching $20.00, resulting in a current day’s gain of over 15%.
The tobacco giant Altria, known for producing Marlboro, has not released a statement yet on whether or not the rumors are true. However, sources say that Altria is pursuing a Constellation-Canopy style deal, rather than a joint venture. Altria is one of the largest tobacco producers in the world, with a current market capitalization just shy of US$120 billion. The Virginia based tobacco giant, listed on the NYSE under ticker symbol MO, had revenues of US$25.58 billion in 2017. The company has not previously stated their intent to enter the cannabis space, however, and it would make sense for them to be interested after Constellation Brands’ investment.
Previous large stake investment from Constellation Brands in Canopy Growth Corporation also sent shares of the largest pot producer in the world flying over 120% in late August.
Currently, Aphria Inc sits at a market capitalization of CA$5 billion, making it the third largest cannabis producer by market cap in Canada. Aphria is also posed to release first quarter results on October 12th, 2018.