Altria Group Inc. (MO) said Friday it is discontinuing its MarkTen and Green Smoke e-vape products, along with Verve oral nicotine containing products in response to regulatory restrictions that will hamper its effort to improve their financial performance. The tobacco giant said it will refocus its efforts on reduced-risk tobacco product opportunities. "We do not see a path to leadership with these particular products and believe that now is the time to refocus our resources," Chief Executive Howard Willard said in a statement. Altria is expecting to book a roughly $200 million pretax charge in the fourth quarter, most of which will be a non-cash asset impairment charge. Earlier, Altria agreed to invest $1.8 billion in Canadian weed company Cronos Corp. (CRON.T) and to be that companies exclusive partner in the cannabis sector. Shares rose 2.5% premarket, but are down 24% in 2018, while the S&P 500 has gained 0.8% and the Dow Jones Industrial Average has gained 0.9%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 07, 2018 14:03 ET (19:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.