Cronos Group Inc. (CRON) - Get Cronos Group Inc Report shares were up 4.23% in morning trading Tuesday after the Canadian cannabis company confirmed that it has been holding discussions with cigarette-maker Altria Group Inc. (MO) - Get Altria Group Inc Report about a potential investment.
Reports surfaced Monday that the two were in talks.
"No agreement has been reached with respect to any such transaction and there can be no assurance such discussions will lead to an investment or other transaction involving the companies," Cronos Group said in a statement.
The Cronos story was the second cannabis M&A news to pop up after New Age Beverages Corp. (NBEV) - Get New Age Beverages Corp Report confirmed the purchase of cannabis-infused drink seller Morinda Holdings for $85 million.
Fellow cannabis shares were falling in trading.
Aphria Inc. (APHA) - Get Aphria Inc Report fell 24.3%. The company denied a shortseller's allegations that it spent more than $200 million to acquire overseas companies that were previously owned by company insiders. The companies supposedly have little value to Aphria's core business, according to hedge fund manager Gabriel Grego.