Dec 7 (Reuters) - Altria Group (NYSE:MO) Inc MO.N :
* ALTRIA TO MAKE GROWTH INVESTMENT IN CRONOS GROUP
* DEAL FOR C$16.25 PER SHARE
* ALTRIA TO INVEST USD $1.8 BILLION (CAD $2.4 BILLION) FOR 45% OWNERSHIP INTEREST
* AGREEMENT INCLUDES A WARRANT TO ACQUIRE AN ADDITIONAL OWNERSHIP INTEREST IN CRONOS GROUP AT A PRICE OF CAD $19.00 PER SHARE
* ALTRIA WILL HAVE RIGHT TO NOMINATE FOUR DIRECTORS, INCLUDING ONE INDEPENDENT DIRECTOR, TO SERVE ON CRONOS GROUP'S BOARD OF DIRECTORS
* EXPECTS ITS INVESTMENT TO HELP CRONOS GROUP ACCELERATE ITS GROWTH STRATEGIES AND ITS RESEARCH AND DEVELOPMENT AND INTELLECTUAL PROPERTY DEVELOPMENT
* IF WARRANTS ARE EXERCISED IN FULL, WARRANT WOULD INCREASE ALTRIA'S OWNERSHIP IN CRONOS GROUP BY 10% TO APPROXIMATELY 55%.
* DEAL INCLUDES WARRANT TO ACQUIRE MORE OWNERSHIP INTEREST IN CRONOS GROUP AT A PRICE OF CAD $19.00 PER SHARE EXERCISABLE OVER FOUR YEARS
* ALTRIA EXPECTS ITS INVESTMENT TO HELP CRONOS GROUP ACCELERATE "GROWTH STRATEGIES AND ITS RESEARCH AND DEVELOPMENT AND INTELLECTUAL PROPERTY DEVELOPMENT"
* AGGREGATE EXERCISE PRICE FOR WARRANT IS EQUAL TO APPROXIMATELY USD $1.0 BILLION
* ALTRIA HAS RECEIVED COMMITTED FINANCING TOTALING APPROXIMATELY CAD $2.4 BILLION FROM JPMORGAN CHASE BANK, N.A.
* AT CLOSING, CRONOS WILL REMAIN CANADIAN PUBLICLY-TRADED COMPANY HEADQUARTERED IN TORONTO, CONTINUE TO BE LED BY ITS EXISTING MANAGEMENT TEAM
* ALTRIA MAY CONSIDER SEEKING PERMANENT FINANCING IN FUTURE
* IT HAS ENTERED INTO AN AGREEMENT TO ACQUIRE NEWLY ISSUED SHARES IN CRONOS GROUP INC