The Bank of Montreal’s subsidiary BMO Nesbit Burns Inc. has its second buy deal within the cannabis sector with the $100 million dollar deal for Cronos Group Inc. (CRON). The deal, led by GMP Securities L.P., sees that BMO will acquire the 10.4 million, or possible 12 million, Cronos common shares at an amount of $9.60 per share.
The first bought deal that BMO performed was a $175 million deal for Canopy Growth Corp. in January of 2018. BMO is the first of the big Canadian banks known as the “big five” to enter the cannabis sector with their bought deal for Canopy Growth Corp.
The share value for Cronos closed trading on the day of the bought deal announcement with the news having not yet made enough reach to create an impact. Within 4 hours of after hours market trading the share price for Cronos spiked to 10% and ended with a 7.51% increase. This increase will without a doubt be felt throughout the day on Friday.