Cronos Group Inc. (CRON) 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) 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.
Fellow cannabis shares were falling in trading.
Aurora Cannabis Inc. (ACB) fell 3.5%.
Canopy Growth Corp. (CGC) declined 2.7%.
Tilray Inc. (TLRY) fell 0.61%.
Aphria Inc. (APHA) 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.