Proactiveinvestors USA & Canada Cronos Group Inc https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Cronos Group Inc RSS feed en Thu, 23 May 2019 16:58:07 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Cronos inks cannabis concentrate supply agreement with MediPharm Labs ]]> https://ca.proactiveinvestors.com/companies/news/220248/cronos-inks-cannabis-concentrate-supply-agreement-with-medipharm-labs-220248.html Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) shares popped Tuesday after the company announced an agreement with cannabis supplier MediPharm Labs Corp (TSE:LABS) (OTCMKTS:MEDIF).

MediPharm will supply Peace Naturals, a wholly owned Cronos subsidiary, with $30 million worth of cannabis concentrate over 18 months with options to increase to as much as $60 million over 24 months.

Cronos stock jumped 7% to C$20.70 in Toronto and nearly 8% to $US15.38, while MediPharm bounced almost 9% to C$7 on the TSXV and about 10% to US$5.22 on the OTC Markets. 

Separately, the companies reached a two-year tolling agreement in which Peace Naturals will supply cannabis in bulk to MediPharm’s extraction facility in Barrie, Ontario and pay the company to process it into resin and other oil derivatives.

READ: Cronos shares sink as it reports wider loss and revenue miss in 1Q

“As the industry develops and matures, we see opportunity to work with companies like MediPharm Labs that provide specialized, high-quality services and inputs for our products,” CEO Mike Gorenstein said in a statement. “Along with our internal capabilities, we are pleased to be working with MediPharm Labs to bring great products to consumers in anticipation of the derivative market launching in Canada this fall.”

Cronos, based in Toronto, is a vertically integrated cannabis company which offers production and distribution platforms for medical marijuana, as well as cannabis oil. It has also has operations on five continents. In addition to Peace Naturals, the company operates adult-use brands COVE and Spinach.

MediPharm is a licensed pharmaceutical-grade cannabis oil producer and promoter of white label brands.   

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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Tue, 14 May 2019 13:55:00 -0400 https://ca.proactiveinvestors.com/companies/news/220248/cronos-inks-cannabis-concentrate-supply-agreement-with-medipharm-labs-220248.html
<![CDATA[Media files - Buds & Duds: Cannabis stocks tumble led by Cronos 1Q earnings that miss the mark ]]> https://ca.proactiveinvestors.com/companies/stocktube/13288/buds--duds-cannabis-stocks-tumble-led-by-cronos-1q-earnings-that-miss-the-mark-13288.html Thu, 09 May 2019 14:05:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/13288/buds--duds-cannabis-stocks-tumble-led-by-cronos-1q-earnings-that-miss-the-mark-13288.html <![CDATA[News - Cronos shares sink as it reports wider loss and revenue miss in 1Q ]]> https://ca.proactiveinvestors.com/companies/news/220003/cronos-shares-sink-as-it-reports-wider-loss-and-revenue-miss-in-1q-220003.html Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) shares dipped Thursday, after the cannabis producer announced earnings results that showed it widened its loss and missed on revenue in the first quarter of 2019. 

Shares sank on Thursday, down 8.1% at C$19.05 in Toronto, down 8.9% at US$14.09 in New York by midday on Thursday.

The firm's net loss in 1Q widened to C$9 million, compared to C$1.5 million in the same period a year ago. Cronos reported revenue of C$6.5 million, which didn't meet the $7 million that analysts predicted.

READ: Buds & Duds: Cannabis stocks tumble led by Cronos 1Q earnings that miss the mark

“In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios,” said CEO Mike Gorenstein in a statement.

In an earnings call on Thursday, Cronos also said it expected adjusted earnings to decline over 2019.

“As we continue to invest in our business, our brands and R&D initiatives, our adjusted EBITDA will likely decline over 2019 but position the company for accelerated growth in 2020,” Chief Financial Officer Jerry Barbato said on the company’s earnings call, as reported by Bloomberg.

Cronos also pointed to the fact that the company is aiming to find a balance between supplying the Canadian market currently, while also making sure it's ready when edibles and vaporizers come available in 4Q 2019. 

"Additionally, the launch of Cronos Device Labs announced earlier this week is an exciting next step on our journey to become a leader in cannabinoid innovation. Vaporizers have become one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to bring the next generation of vaporizer products designed specifically for cannabinoids."

Cronos sells more cannabis in 1Q

Cronos reported that 1111 kilograms of cannabis was sold in the first quarter 2019, marking a 122% increase, compared to 501 kilograms sold in the first quarter of 2018, driven by a boost in cannabis production and the launch of Canada's recreational market. 

The firm also reported that it experienced growth in cannabis oil sales, which represented 23% of its net product revenue in 1Q 2019, as compared to 9% in the same period in 2018. 

Contact Katie Lewis at katie@proactiveinvestors.com

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Thu, 09 May 2019 11:50:00 -0400 https://ca.proactiveinvestors.com/companies/news/220003/cronos-shares-sink-as-it-reports-wider-loss-and-revenue-miss-in-1q-220003.html
<![CDATA[News - Buds & Duds: Cannabis stocks tumble led by Cronos 1Q earnings that miss the mark ]]> https://ca.proactiveinvestors.com/companies/news/220001/buds--duds-cannabis-stocks-tumble-led-by-cronos-1q-earnings-that-miss-the-mark-220001.html Cannabis stocks sank like a stone on Thursday, with broad losses across North American markets. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 2.6% to 275.2 points by Thursday's close. The Horizons Marijuana Life Sciences Index ETF was down 3% at C$19.97.

Duds

Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) led the pack Thursday, after the cannabis producer widened its loss and missed on sales in its first-quarter results, released Thursday morning. 

Shares were down 8.1% at C$19.05 in Toronto, down 8.9% at US$14.09 in New York by the close on Thursday. The stock is at its lowest since January. 

The firm's net loss in 1Q widened to C$9 million, compared to C$1.5 million in the same period a year ago. Cronos reported revenue of C$6.5 million, which didn't meet the C$7 million that analysts predicted. 

In an earnings call on Thursday, Cronos also said it expected adjusted earnings to decline over 2019.

“As we continue to invest in our business, our brands and R&D initiatives, our adjusted Ebitda will likely decline over 2019 but position the company for accelerated growth in 2020,” Chief Financial Officer Jerry Barbato said on the company’s earnings call, as reported by Bloomberg. 

“In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios,” said CEO Mike Gorenstein in a statement. 

READ: Heritage Cannabis inks deal with Zenabis Global to bring new products and services to Canadian cannabis consumers

Other laggards on Tuesday included Canopy Growth Corporation (TSE:WEED) (NYSE:CGC), which was down 2.4% at US$46.87 in New York and down 2.3% at C$63.05 in Toronto.

Canopy Growth announced Thursday it inked a deal with PharmHouse, entering into an offtake agreement. Under the terms, Canopy will buy between 25,000-45,000 kilos of cannabis annually from PharmHouse's greenhouse facility. 

Canopy Rivers, the investment arm of Canopy, has had a joint venture with PharmHouse and has been working together to prepare the facility for licensing. Canopy Rivers Inc (CVE:RIV) shares were up 4.3% at C$3.91 in Canadian trading. 

"We have witnessed Canopy Rivers and its joint venture partner pour their hard work into the PharmHouse facility in Leamington and couldn't be more satisfied with how it has turned out," said Bruce Linton, Chairman & Co-CEO of Canopy Growth Corporation and Chairman & CEO of Canopy Rivers. "We expect the same for the flower quality that PharmHouse will be providing to Canopy Growth. This is further evidence that the ecosystem model we had hoped for from Canopy Rivers is demonstrating its value and this new offtake agreement with PharmHouse speaks to how well we are managing our numerous assets."

Other laggards on Thursday included CV Sciences (OTCMKTS:CVSI), which was down 2.6% at US$4.87. The firm also reported 1Q earnings, reporting record revenues of US$14.9 million for the first quarter of 2019, an increase of 85% over the same quarter in 2018.

However, the firm disappointed on earnings, reporting a net loss of $9.4 million compared to net income of $0.6 million in the same period in 2018. 

Buds

A small handful of stocks bucked the trend on Thursday. 

High Hampton Holdings Corp (CSE:HC) (OTCMKTS:HHPHF) shares were up Thursday, up 7% at US$0.27 in New York and up 3% at C$0.34 in Canadian trading. The firm announced Wednesday that it bolstered its board with the addition of entrepreneur Robert Allen as chairman. 

High Hampton is a cannabis sector investment company focused on opportunities in California. 

READ: High Hampton taps entrepreneur Robert Allen as chairman

Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF) shares were up on Thursday, after it announced it has completed the largest adult-use cannabis order in the company’s history today in Canada. The firm said the delivery is being made to a Canadian provincial government for distribution to online and retail consumers and will contain oils, oral sprays and dried flower products.

Shares were up 3% at C$1.71 in Canadian trading, up 2.2% at US$1.26 in New York.

 

Contact Katie Lewis at katie@proactiveinvestors.com

 

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Thu, 09 May 2019 11:07:00 -0400 https://ca.proactiveinvestors.com/companies/news/220001/buds--duds-cannabis-stocks-tumble-led-by-cronos-1q-earnings-that-miss-the-mark-220001.html
<![CDATA[News - Buds & Duds: Cannabis stocks start the week with a thud; Cronos and Tilray lag on price cuts ]]> https://ca.proactiveinvestors.com/companies/news/219730/buds--duds-cannabis-stocks-start-the-week-with-a-thud-cronos-and-tilray-lag-on-price-cuts-219730.html Cannabis stocks started the week with an abrupt thud, with significant drops across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 0.7% to 286.02 points by Monday afternoon. The Horizons Marijuana Life Sciences Index ETF was down 0.2% at C$20.93.

Duds

There were a host of laggards on Monday.

Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) shares continued to drop on Monday, down 3.3% at US$16.02 in New York and down 3.3% at C$21.53 in Toronto.

Last week, analyst Piper Jefferies cut the target price for Cronos Group (CRON) to C$15 from $17 Canadian dollars, on the back of expectations of a lower share in Canada’s recreational market.

Tilray Inc (NASDAQ:TLRY) shares were also lagging on Monday, down 1.6% at US$49.41. Jeffries also cut Tilray's price target last week, to $57 from $61 due to concerns about Tilray's cost of purchasing from a third-party, a result of a supply shortage, how upgraded its rating to Hold from Underperform. 

Joining in the broad decline of cannabis stocks was Planet 13 Holdings Inc (OTCMKTS:PLNHF), which fell 1.1% to US$2.34.

The cannabis megastore released its financial results last week. In the fourth quarter ended December 31, 2018, the company reported revenues of US$8.3 million as compared to US$3.4 million, an increase of 145%. However, it reported a net loss of US$4.0 million as compared to a net profit of $259,493 in the same period in 2017. 

Buds

A number of stocks bucked the trend on Monday and gained ground.  

True Leaf Medicine International Ltd (CSE:MJ) (OTCMKTS:TRLFF) soared 7% at C$0.46 in Toronto. 

The Vernon, BC-based cannabis and hemp wellness brand for pets announced last week it was raising C$1 million in capital from exercising warrants. 

READ: True Leaf Medicine International raises C$1 million in capital from exercising warrants

CEO Darcy Bomford said the capital infusion will help the company expand operations globally, among other uses.

“This additional capital will strengthen our balance sheet and allow us to continue to execute on our growth plans, including bringing a legally-compliant CBD product for pets to market and expanding our global distribution, including entering new markets in the Asia Pacific region and Australia,” he said in a statement.

Other gainers on Monday included Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF), which saw its shares up 13.3% at US$1.16 in New York as the company announced it was entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH. 

Auxly Cannabis Group Inc (CVE:XLY) (OTCMKTS:CBWTF) stock was also on the rise Monday, up 1.2% at C$0.85 in Canadian trading on no news. 

The cannabis streaming company has operations across Canada and Uruguay. 

 

Contact Katie Lewis at katie@proactiveinvestors.com

Follow her on Twitter @kelewis

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Mon, 06 May 2019 10:40:00 -0400 https://ca.proactiveinvestors.com/companies/news/219730/buds--duds-cannabis-stocks-start-the-week-with-a-thud-cronos-and-tilray-lag-on-price-cuts-219730.html
<![CDATA[News - Cronos stock swoons on a trio of downgrades to the cannabis-focused company ]]> https://ca.proactiveinvestors.com/companies/news/217353/cronos-stock-swoons-on-a-trio-of-downgrades-to-the-cannabis-focused-company-217353.html Cronos Group Inc (TSX:CRON) (NASDAQ:CRON) shares fell Wednesday after a trio of downgrades hit the cannabis stock.

PI Financial's Jason Zandberg and Cormack’s Jesse Pytlak each rethought their bullishness on the Toronto firm, downshifting, respectively, to Neutral from Buy and to Market Perform from Speculative Buy.

Matt Bottomley of Canaccord went a step farther, cutting his rating to Sell from Hold, citing a “soft start” to Canada’s legal cannabis market.

READ: Buds & Duds: Cronos shares tumble, Newstrike Brands soars on results

The demerits come after the cannabis investment firm posted a fourth-quarter net loss of US$116 million, US$0.06 per share, on Tuesday, compared with a $0.01 profit the previous year.

The stock sank 10% to C$24.32 on the TSX and lost more than 10% to US$18.10 on the Nasdaq.

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Wed, 27 Mar 2019 12:18:00 -0400 https://ca.proactiveinvestors.com/companies/news/217353/cronos-stock-swoons-on-a-trio-of-downgrades-to-the-cannabis-focused-company-217353.html
<![CDATA[News - Buds & Duds: Cannabis stocks tumble on back of Cronos downgrade ]]> https://ca.proactiveinvestors.com/companies/news/217352/buds--duds-cannabis-stocks-tumble-on-back-of-cronos-downgrade-217352.html Cannabis stocks sank like a stone on Wednesday, with broad losses across North American markets. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 2.5% to 297.45 by Wednesday's close. The Horizons Marijuana Life Sciences Index ETF was down 3.8% at C$21.93. 

Duds

Leading the pack and hot on the heels of a downgrade was Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) after Cannaccord analysts downgraded the stock from Hold to Sell, with a price target of C$6.50. 

Shares of the company were down 9.9% at US$18.24 in New York and down 8.5% at C$24.75 in Toronto. 

In a report to clients, Canaccord analysts wrote they were disappointed with the company's latest quarterly earnings and the company's valuation was looking stretched, after gains since December. Since the beginning of 2019, the stock has jumped more than 80%. 

On Tuesday, the company reported revenue of C$5.6 million, below expectations of C$10.4 million. 

READ: Canopy Growth adds Seth Rogen's new cannabis brand to its arsenal

Other laggards on Tuesday included Canopy Growth Corporation (TSE:WEED) (NYSE:CGC), which was down 4% at US$42.89 in New York and down 3.8% at C$57.49 in Toronto.

Earlier in the day, it was announced the company was adding a cannabis brand founded by Vancouver natives Seth Rogen and Evan Goldberg to its arsenal. Houseplant, which the pair debuted on Wednesday, will have its first strain available in British Columbia starting in April.

Houseplant will rely on Canopy’s production and distribution capacity to sell flower, Softgel and pre-rolled cannabis.

Other laggards included CV Sciences (OTCMKTS:CVSI) down 6.3% at US$5.78, Cresco Labs Inc (OTCMKTS:CRLBF) down 1% at US$11.24 and HEXO Corp (TSE:HEXO) (OTCMKTS:HYYDF) down 5.7% at US$6.40 in New York. 

Buds

There were, however, some winners on Wednesday. India Globalization Capital Inc (NYSE:IGC) stock jumped Wednesday after the infrastructure-meets-cannabis company said Hyalolex, a cannabis-based product for patients suffering from Alzheimer’s disease, will be available in dispensaries in San Juan, Puerto Rico.

Shares were up 5.6% at US$2.09 in New York. 

READ: India Globalization Capital stock pops after CBD-based Hyalolex drops for Alzheimer’s patients launches in Puerto Rico

Shares of True Leaf Medicine International Ltd (CSE:MJ) (OTCMKTS:TRLFF) jumped earlier on Wednesday, up 2.4% at C$0.42.

Last week, the Vernon, BC-based cannabis and hemp wellness brand for pets announced news it widening its distribution to 3,500 stores in North America. 

Contact Katie Lewis at katie@proactiveinvestors.com

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Wed, 27 Mar 2019 11:30:00 -0400 https://ca.proactiveinvestors.com/companies/news/217352/buds--duds-cannabis-stocks-tumble-on-back-of-cronos-downgrade-217352.html
<![CDATA[News - Buds & Duds: Cronos shares tumble, Newstrike Brands soars on results ]]> https://ca.proactiveinvestors.com/companies/news/217265/buds--duds-cronos-shares-tumble-newstrike-brands-soars-on-results-217265.html Cannabis stocks had a promising start to Tuesday, with broad gains across North American markets. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.47% to 305.16 by Tuesday's close. The Horizons Marijuana Life Sciences Index ETF edged up 0.1% at C$22.80.

Duds

The mixed fourth-quarter results of Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) led cannabis news, with shares of the company down 1.4% at US$20.24 in New York and down 1.1% at C$27.06 in Toronto. 

The Canadian cannabis producer reported 4Q revenue of US$5.6 million, significantly higher than the US$1.6 million a year earlier. But the company still had a net loss of US$11.6 million, or US$0.06 per share, a swing from a profit of a penny per share in the year-ago quarter.

READ: Cronos Group reports higher revenue but widening loss in mixed 4Q earnings results

Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF) shares lagged Tuesday, down 3.7% at US$8.90 in New York and down 3.6% at $11.90 in Toronto. 

The Vancouver-based company reported a distribution agreement with US drugstore operator CVS Health Corp (NYSE:CVS) last week, with management’s “hope to cement” further deals later in the year.

Buds

Shares of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) popped after it released its fourth-quarter financial results. 

Shares of the Toronto-based company were up 10% at C$0.55 in Toronto and climbed 7.8% at US$0.42 in New York. 

The company reported sales of C$5.3 million of cannabis in the adult-use and wholesale markets and posted a net loss of C$9,423,000 or C$0.01 per share. 

READ: True Leaf Medicine International to sell hemp-based pet supplements in Pet Planet stores

Other cannabis gainers included CBD- and hemp-focused Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF), which was up 8.8% at US$1.11 in New York and gained 9.5% at C$1.50 in Toronto.

 

Contact Katie Lewis at katie@proactiveinvestors.com

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Tue, 26 Mar 2019 11:26:00 -0400 https://ca.proactiveinvestors.com/companies/news/217265/buds--duds-cronos-shares-tumble-newstrike-brands-soars-on-results-217265.html
<![CDATA[News - Cronos Group reports higher revenue but widening loss in mixed 4Q earnings results ]]> https://ca.proactiveinvestors.com/companies/news/217245/cronos-group-reports-higher-revenue-but-widening-loss-in-mixed-4q-earnings-results-217245.html Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) saw revenue rise in the fourth quarter of 2018 but still reported a net loss for the period as it released its quarterly and year-end earnings early Tuesday.

Shares of Cronos slipped more than 3% in morning trading as the Canadian cannabis producer reported 4Q revenue of US$5.6 million, significantly higher than the $1.6 million for the same period last year.

However, the company still had a net loss of $11.6 million during the quarter, or $0.06 per share. The cannabis producer swung from a profit of a penny per share in the year-ago quarter.

The Toronto-based company attributed revenue growth for the quarter to shipments to the Canadian adult-use market and a growth in cannabis oil proceeds.

READ: Altria makes C$2.4B investment in Canadian cannabis company Cronos Group

Analysts were expecting to see a loss of $0.01 on earnings of $7.8 million for the quarter. Cronos missed on both metrics.

Full-year revenue for 2018 was C$19.2 million, compared with C$1.8 million in 2017 but, again, a net loss of C$0.11 per share versus a penny profit a year ago. 

“Over the past year, Cronos Group has diligently focused on our strategic objectives, which culminated in our transformative partnership with Altria Group, Inc.,” said Mike Gorenstein, CEO of Cronos Group. “We’ve expanded our production footprint domestically and internationally, developed our distribution with global partnerships, launched iconic brands for the Canadian adult-use market and grown our IP portfolio with landmark research and development initiatives.”

In March 2019, Cronos closed a $2.4 billion equity investment from Marlboro cigarette maker Altria Inc. Altria now holds 45% of Cronos shares, with an option to increase its stake to 55% under the agreement.

Shares of Cronos were trading at US$19.80 in New York and slipped 1% to C$27.10 in Toronto on Tuesday morning.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

 

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Tue, 26 Mar 2019 09:42:00 -0400 https://ca.proactiveinvestors.com/companies/news/217245/cronos-group-reports-higher-revenue-but-widening-loss-in-mixed-4q-earnings-results-217245.html
<![CDATA[Media files - Buds & Duds: The Green Organic Dutchman shares jump as it launches Growers’ Circle; Cronos shares up ahead of earnings ]]> https://ca.proactiveinvestors.com/companies/stocktube/12719/buds--duds-the-green-organic-dutchman-shares-jump-as-it-launches-growers-circle-cronos-shares-up-ahead-of-earnings-12719.html Mon, 25 Mar 2019 15:56:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/12719/buds--duds-the-green-organic-dutchman-shares-jump-as-it-launches-growers-circle-cronos-shares-up-ahead-of-earnings-12719.html <![CDATA[News - Altria makes C$2.4B investment in Canadian cannabis company Cronos Group ]]> https://ca.proactiveinvestors.com/companies/news/210781/altria-makes-c24b-investment-in-canadian-cannabis-company-cronos-group-210781.html Tobacco behemoth Altria Group Inc (NYSE:MO) has agreed to make a C$2.4 billion (US$1.8 billion) equity investment in the Canadian cannabis company Cronos Group Inc (NASDAQ:CRON) in a bid to widen its business beyond tobacco.

Under the deal involving the issue of Cronos shares to Altria, the tobacco company will control about a 45% ownership stake in the company, and the stake will jump to 55% if additional warrants are exercised.

READ: Altria in investment talks with Canadian cannabis company Cronos

As part of the agreement, Altria will receive warrants in Cronos that if fully exercised would provide the company with an additional C$1.4 billion of proceeds.

The deal is set to close in the first half of 2019 and after the tie-up, Cronos will serve as Altria’s sole partner in pursuing opportunities in the cannabis sector.

While the tobacco sector is coming under pressure due to diminished demand for cigarettes, interest in cannabis is on the rise, which is the reason behind Altria's move to snap up a stake in Cronos.

“[We] look forward to helping Cronos Group realize its significant growth potential,” said Howard Willard, Altria’s CEO in a statement.

In response to the announcement, Cronos shares soared 23.4% to hit $12.90 before the opening bell on Friday while Altria shares nudged up by 1% to $54.90.

For Cronos, the strategic partnership provides the cannabis company with additional financial resources and deep regulatory expertise that will allow it to compete in the fledgling marijuana sector and scale its business.

“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth,” said Cronos CEO Mike Gorenstein in a statement.

"Altria has decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world," he added.

READ: Tobacco powerhouse Altria in talks to ac quire equity stake in Canadian cannabis grower Aphria, says The Globe and Mail

The legalization of marijuana by Canada this year is prompting renewed interest in investment in the country’s cannabis companies. And news of the tie-up between Altria and Cronos come on the heels of the US alcohol beverage group Constellation Brands, completing a C$5 billion (US$4bn) investment in the Canadian cannabis company Canopy Growth.

A deal between Altria and Cronos represents one of the first combinations of an old-school tobacco company, which is looking to offset a decline in smoking rates, and an upstart cannabis company.

Altria is also reported to be weighing an investment in the e-cigarette maker Juul in another bid to widen its repertoire of smoking products beyond cigarettes. And earlier this year, reports surfaced that Altria had contemplated taking a stake in Aphria, another Canadian cannabis producer.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

 

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Fri, 07 Dec 2018 07:52:00 -0500 https://ca.proactiveinvestors.com/companies/news/210781/altria-makes-c24b-investment-in-canadian-cannabis-company-cronos-group-210781.html
<![CDATA[News - Cronos revenue nearly triples after Canada cannabis legalization, but swings to a loss for third quarter ]]> https://ca.proactiveinvestors.com/companies/news/209099/cronos-revenue-nearly-triples-after-canada-cannabis-legalization-but-swings-to-a-loss-for-third-quarter-209099.html Cronos Group (NASDAQ:Cron, TSX:Cron) saw revenue nearly triple to C$3.8 million in its latest quarter as the cannabis company took advantage of the legalization of cannabis in Canada and extended its reach.

For the third quarter, sales climbed to $3.8 million, up from $1.3 million in the corresponding period last year. Kilograms of cannabis sold also more than tripled in the third quarter to 514 kilograms from 164 kilograms in the year-ago quarter.

Looking at profits, the picture was less rosy as Cronos swung to a net loss of $7.27 million, or $0.04 per share, from a profit of $1.097 million, or $0.01 per share in the year-ago quarter.

CEO Mike Gorenstein was bullish on the company’s recent advances.

“In the quarter, we announced a number of landmark partnerships to expand our reach beyond the flower and beyond Canada and launched our second differentiated recreational cannabis brand,” Gorenstein said in a statement. “The recent legalization of cannabis sales for adult recreational use in Canada was a watershed moment for our industry and our company,” he added.

READ: Cronos Group stock jumps after partnering with Boston biotech Ginkgo Bioworks in a US$122mln deal to develop cultured cannabinoids

On the list of quarterly highlights was a new partnership between Cronos and Ginkgo Bioworks to produce cultured cannabinoids through fermentation that are identical to those extracted from the cannabis plant.

Last August, Cronos also unveiled a 50/50 joint venture with an affiliate of Agroidea SAS, a Colombian agricultural services provider. The partnership will set up NatuEra, a new group that will manufacture and export cannabis-based medical and consumer products for Latin America and other markets.

In two other advances, Cronos also launched its recreational brand Spinach and announced another joint venture with a group of investors led by Bert Mucci, greenhouse operator in Canada.

The new JV group, Cronos Growing Company, is expected to construct an 850,000 square foot greenhouse on about 100 acres of land in Kingsville, Ontario. Once operational, the greenhouse is set to produce up to 70,000 kilograms of cannabis annually.

The first cannabis company to uplist to a major US exchange, Cronos’s earnings are being scrutinized by investors who are analyzing the worth of Canada’s marijuana companies in the wake of the country’s legalization of the drug last month.

Cronos shares slipped 5% to $8.03 before the opening bell on Tuesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Tue, 13 Nov 2018 08:03:00 -0500 https://ca.proactiveinvestors.com/companies/news/209099/cronos-revenue-nearly-triples-after-canada-cannabis-legalization-but-swings-to-a-loss-for-third-quarter-209099.html
<![CDATA[News - Buds & Duds: Cannabis stocks riding high ahead of the US midterm election ]]> https://ca.proactiveinvestors.com/companies/news/208667/buds-duds-cannabis-stocks-riding-high-ahead-of-the-us-midterm-election-208667.html Cannabis stocks were on the rise Tuesday with several big names riding high as US voters in four states head to the polls to vote on marijuana proposals.

Cronos Group Inc (NASDAQ:CRON) was one of the best-performing cannabis stocks, jumping nearly 10% to US$9.05 by Tuesday’s closing bell.

Auxly Cannabis Group Inc (OTCQX:CBWTF) shares were up more than 4% to US$0.83.

The company recently closed its acquisition of Inverell S.A., a federally-licensed cannabis operator based in Uruguay.

READ: Marijuana and the Midterms: Legal cannabis could be headed to these four states

Canopy Growth Corporation (TSE:WEED, NYSE:CGC) shares were up more than 6% to US$42.59.

The cannabis producer recently closed its US$4 billion investment from Constellation Brands Inc (NYSE:STZ), the maker of Corona beer.

OrganiGram Holdings Inc (CVE:OGI, OTCQX:OGRMF) shares were up more than 5% this afternoon, closing up about 2% to US$4.93.

The New Brunswick-based cannabis supplier also operates healing centers for those living with post-traumatic stress disorders, chronic pain, and other forms of trauma.

Newstrike Brands Ltd (OTCMKTS:NWKRF) shares climbed nearly 4% higher to US$0.54.

Its subsidiary Up Cannabis Inc was named an official supplier to the Ontario Cannabis Store.

Duds

It was a good day for cannabis stocks, but not every company fared well.

ICC International Cannabis Corp (CSE:WRLD, OTCQX:KNHBF) shares sank nearly  9% to US $0.47 by the end of the trading day.

The Vancouver-based company recently announced a strategic partnership with GreenTree International Inc, the parent company of Amercanex which operates the ACExchange, to create an electronic cannabis market platform.

MariMed Inc (OTCQB:MRMD) shares took a hit, slipping nearly 4% to US$4.67.

READ: Weekend Unlimited upbeat on tenant Orchard Heights' proof-of-concept cannabis harvest

The Massachusetts-based company operates cannabis facilities Delaware, Illinois, Nevada, and Maryland.

MPX Bioceutical Corporation (CSE: MPX; OTCQX: MPXEF) shares were down more than 2% to $0.81.

The Toronto-based cannabis company has been expanding its reach into the Maryland market via dispensary acquisitions.

Shares of CV Sciences Inc (OTCQX:CVSI) fell about 4% to US$6.15.

The life science company develops plant-based CBD products under its PlusCBD Oil brand.

The North American Marijuana Index, which tracks the leading cannabis stocks in the US and Canada, was up more than 1% by the end of the day.

--Updated to reflect recent share price

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Tue, 06 Nov 2018 14:41:00 -0500 https://ca.proactiveinvestors.com/companies/news/208667/buds-duds-cannabis-stocks-riding-high-ahead-of-the-us-midterm-election-208667.html
<![CDATA[News - Cronos Group partners with foundation for cannabinoid-based skin care treatments ]]> https://ca.proactiveinvestors.com/companies/news/207102/cronos-group-partners-with-foundation-for-cannabinoid-based-skin-care-treatments-207102.html Cronos Group Inc (NASDAQ:CRON) (TSX: CRON) said on Monday it has entered into a sponsored research agreement to explore the use of cannabinoids and their role in regulating skin health and skin disorders. 

The agreement was reached with Technion Research and Development Foundation, which is a subsidiary of the Technion - Israel Institute of Technology. The preclinical studies will be conducted by Technion over a three-year period and will focus on three skin conditions: acne, psoriasis and skin repair.

"We believe that the potential applications of cannabinoids to regulate skin health and treat skin disorders are vast, and we are excited to begin exploring these applications through our partnership with Technion," said Mike Gorenstein, the Cronos Group CEO.

READ: Cronos Group partners with Aleafia Health to work on medical cannabis study to treat insomnia

The endocannabinoid system and the cannabinoids that modulate its activity are believed to have an important role in regulating skin health and skin disorders.

The research will be led by Technion faculty members Dr David Meiri and Dr Yaron Fuchs, two of the world's leading researchers in cannabis and skin stem cell research. 

The research will utilize Dr Meiri's cannabis strain database of over 80 cultivars and Cronos Group's strain specific cannabis oils to isolate and investigate the effects of individual and combinations of cannabinoids, potentially including rare cannabinoids, for treating acne, psoriasis and wounds using stem cell-derived organoid cultures developed by Dr Fuchs' laboratory and mouse models. 

Cronos Group expects to be able to adapt the individual and combinations of cannabinoids to develop products for each of these three applications and expects to receive an exclusive, worldwide license to market and manufacture such products.

Shares of Cronos Group rose 3.85% to $10.24.

Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across five continents. The company is based in Toronto.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Mon, 15 Oct 2018 10:25:00 -0400 https://ca.proactiveinvestors.com/companies/news/207102/cronos-group-partners-with-foundation-for-cannabinoid-based-skin-care-treatments-207102.html
<![CDATA[News - Andrew Left of Citron Research looking to create cannabis-fund, says Bloomberg ]]> https://ca.proactiveinvestors.com/companies/news/205788/andrew-left-of-citron-research-looking-to-create-cannabis-fund-says-bloomberg-205788.html Activist stock researcher Andrew Left of Citron Research is looking to create a cannabis-related fund to play both the long and short positions in the sector, a report by Bloomberg said.

Left, who is short on cannabis stocks such as Tiltary Inc (NASDAQ:TLRY) and Cronos Group Inc (NASDAQ:CRON), said the fund’s value would likely be in the hundreds of millions of dollars, the report said.

The fund would invest in Canadian-listed marijuana companies before expanding to US firms if they are able to list on US exchanges over a 24-month period.

READ: Are marijuana stocks too high for an investor tempted to join the party, or do they have room to run?

“It’s not the ninth inning, it’s the third inning because we’re only trading with Canadian companies. There’s so many private companies in the US that can’t go public in the US. Whether it’s going to be in two years depending on who our attorney general will be or in four years, it’s going to happen,” Left said in the report.

Cannabis-listed companies have turned into a hot market sector ahead of the legalization of cannabis in Canada in mid-October.

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Wed, 26 Sep 2018 14:00:00 -0400 https://ca.proactiveinvestors.com/companies/news/205788/andrew-left-of-citron-research-looking-to-create-cannabis-fund-says-bloomberg-205788.html
<![CDATA[News - Cronos Group partners with Aleafia Health to work on medical cannabis study to treat insomnia ]]> https://ca.proactiveinvestors.com/companies/news/205339/cronos-group-partners-with-aleafia-health-to-work-on-medical-cannabis-study-to-treat-insomnia-205339.html The Canadian cannabis company Cronos Group (NASDAQ:CRON, TSX:CRON) is teaming up with the Vancouver-based medical cannabis company Aleafia Health Inc (OTCMKTS:ALEAF) to work on a joint medical cannabis study designed to improve the treatment of insomnia and daytime sleepiness.

The study is funded in part by Peace Naturals Project Inc, a licensed producer of medical cannabis that is wholly-owned by Cronos. Physicians practicing within the Canabo Medical Clinic network, which is owned by Aleafia, will lead the investigation.

Cronos shares rose 7% to US$13.58 in Thursday’s pre-market session while Aleafia Health shares stayed flat at US$1.45.

Read: Cronos Group to launch second cannabis product in Canada called 'Spinach'

The aim of the initiative is use cannabis to assist in the management of insomnia and the development of non-addictive, natural sleep aids.

“There is mounting evidence of the risks of prescription sleeping aids including worsening mental health and increased risk of dementia,” said Aleafia’s chief medical officer Michael Verbora in a statement.

“This study may in part point to medical cannabis as an alternative to harmful prescription drugs,” Verbora added.

Toronto-based Cronos Group is a diversified cannabis company with a presence across four continents. It operates two wholly-owned Canadian licensed producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations. They are Peace Naturals Project Inc and Original BC Ltd, which is based in the Okanagan Valley of British Columbia.

Aleafia, meanwhile, operates a medical cannabis clinic network in Canada under the Canabo Medical Clinic brand, which is staffed by licensed physicians.

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Thu, 20 Sep 2018 08:00:00 -0400 https://ca.proactiveinvestors.com/companies/news/205339/cronos-group-partners-with-aleafia-health-to-work-on-medical-cannabis-study-to-treat-insomnia-205339.html
<![CDATA[News - Cronos Group to launch second cannabis product in Canada called 'Spinach' ]]> https://ca.proactiveinvestors.com/companies/news/204862/cronos-group-to-launch-second-cannabis-product-in-canada-called-spinach--204862.html The Cronos Group Inc (NASDAQ:CRON) (CSE:CRON) (FRA:7CI) said on Thursday it is launching its second cannabis brand in the Canadian market which will be called "Spinach."

"Cronos Group's first priority is responsible distribution so we made sure to select a brand name that we felt would not appeal to kids," said Mike Gorenstein, the chief executive of the Cronos Group.

Starting on October 17, 2018, Canada will become the first G7 country to federally legalize recreational cannabis. This means consumers in Canada will be able to purchase Spinach without fear of persecution by the authorities, the company said.

Spinach is the second brand launched by Cronos Group for the domestic cannabis recreational market, following its premium brand Cove. 

Shares of Cronos in Toronto were trading almost 6% lower at C$13.82. The shares in New York were down 5% to US$10.70.

READ: Cronos Group stock jumps after partnering with Boston biotech Ginkgo Bioworks in a US$122mln deal to develop cultured cannabinoids

Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across four continents.

The company operates two wholly-owned Canadian licensed producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations.

They are Peace Naturals Project Inc, which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd, which is based in the Okanagan Valley, British Columbia .

The company has multiple international production and distribution platforms. It is based in Toronto, Canada.

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Thu, 13 Sep 2018 11:06:00 -0400 https://ca.proactiveinvestors.com/companies/news/204862/cronos-group-to-launch-second-cannabis-product-in-canada-called-spinach--204862.html
<![CDATA[Media files - CryptoCann™ Report: Alibaba holds top spot for blockchain patents; Cronos inks deal for lab-grown cannabis ]]> https://ca.proactiveinvestors.com/companies/stocktube/10332/cryptocann-report-alibaba-holds-top-spot-for-blockchain-patents-cronos-inks-deal-for-lab-grown-cannabis-10332.html Tue, 04 Sep 2018 16:07:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10332/cryptocann-report-alibaba-holds-top-spot-for-blockchain-patents-cronos-inks-deal-for-lab-grown-cannabis-10332.html <![CDATA[News - Cronos Group stock jumps after partnering with Boston biotech Ginkgo Bioworks in a US$122mln deal to develop cultured cannabinoids ]]> https://ca.proactiveinvestors.com/companies/news/204173/cronos-group-stock-jumps-after-partnering-with-boston-biotech-ginkgo-bioworks-in-a-us122mln-deal-to-develop-cultured-cannabinoids-204173.html Shares of Cronos Group Inc (NASDAQ:CRON, TSX:Cron) soared Thursday after the Canadian cannabis company announced it was partnering with Boston-based biotech Gingko Bioworks Inc to produce cultured cannabinoids or genetically engineer the active compounds in marijuana.

Ginko will use its platform technology to identify relevant cannabinoids, with medicinal use that appear in tiny quantities in the cannabis plant and extract the DNA to culture them in a lab.

According to a company statement, Cronos will give Ginkgo about US$22mln to fund research and development and will issue up to 14.7 million shares valued at US$100mln in tranches as it achieves production milestones.

The news sent Cronos stock flying 12.25% to US$11.09 on the tech-laden Nasdaq, while it gained as much as 16% on the Toronto Stock Exchange.

"Cronos Group is building the world's most innovative cannabinoid platform," Cronos Group CEO Mike Gorenstein said in a statement.

"The potential uses of cannabinoids are vast, but the key to successfully bringing cannabinoid-based products to market is in creating reliable, consistent, and scalable production of a full spectrum of cannabinoids, not just THC and CBD. We are thrilled to partner with Ginkgo; their biological engineering capabilities and disruptive technology platform are unrivaled. Together we can revolutionize the cannabis industry."

READ: Are marijuana stocks too high for an investor tempted to join the party? Or do they have room to run?

Ginkgo, which has a 100,000-square-foot lab in Boston, got its start creating scents for the fragrance industry. By transferring the DNA sequences for cannabinoid production into yeast, Ginkgo expects to develop strains that produce cultured cannabinoids at high purity in a process similar to brewing beer in a microbrewery. 

"Legal cannabis is a multibillion-dollar industry with no signs of slowing down, but providers will need to innovate to keep up with demand for better products, including those taking advantage of rare and difficult to extract cannabinoids," said Jason Kelly, CEO and co-founder of Ginkgo Bioworks.

"Engineering strains of yeast that can produce these cannabinoids via fermentation is a perfect fit for our organism design platform and we are excited to be working with Cronos Group as they lead the way to high-quality cannabinoid treatments," added Kelly.

Ginkgo’s technology may translate well in the cannabis industry. Bloomberg threw up an example, saying a compound called tetrahydrocannabivarin, or THCV, acts as an appetite suppressant and appears in very small quantities in the cannabis plant, making it “difficult and expensive” to produce at scale. “Using Ginkgo’s technology, pure THCV can be produced in a lab,” noted Bloomberg.

The partnership between Ginkgo and Cronos will focus on the scalable and consistent production of a wide range of cannabinoids, including THC, CBD and a variety of other lesser known and rarer products. These cultured cannabinoid molecules are identical to those extracted from the plants grown with traditional methods, but are created by leveraging the power of biological manufacturing via fermentation.

Cronos will have exclusive rights to use and commercialize the key patented intellectual property related to the production of the target cannabinoids globally.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 04 Sep 2018 15:29:00 -0400 https://ca.proactiveinvestors.com/companies/news/204173/cronos-group-stock-jumps-after-partnering-with-boston-biotech-ginkgo-bioworks-in-a-us122mln-deal-to-develop-cultured-cannabinoids-204173.html
<![CDATA[News - Are marijuana stocks too high for an investor tempted to join the party, or do they have room to run? ]]> https://ca.proactiveinvestors.com/companies/news/204003/are-marijuana-stocks-too-high-for-an-investor-tempted-to-join-the-party-or-do-they-have-room-to-run-204003.html The cannabis industry has great promise and pulling power but investors must do their research before chasing marijuana stocks as the space is heating up and is rife with short sellers and pump-and-dump schemes.  

“Investors have stars in their eyes. My inbox is flooded with offers to make me a marijuana multimillionaire. Age-old “pump-and-dump” schemes are in full bloom in marijuana stocks,” warned analyst Nigam Arora, the author of The Arora Report.

“The most important pointer is to not fall victim to pump and dump schemes. In such schemes, certain stocks are heavily promoted. The stocks run up on the promotions. Those promoting the stocks buy them before they start pumping and then dump them when mom and pop start buying them,” warned Arora.

Canadian cannabis stocks have already floated to a collective stock-market value above C$30bn. That’s already about half the market capitalization of Canada’s gold mining industry.

Despite many of the major players in the cannabis space seeing double-digit gains this month on the back of Constellation’s record US$4bn investment in Ontario-based Canopy Growth Corp (NYSE:CGC), "Fast Money" trader Tim Seymour says the group has room to grow.

READ: CannaRoyalty’s focus beyond Canada is more than just California Dreamin’

"What we're seeing cannabis traders do is they're rotating into US names, and that's something that ultimately I think you want to take a look at,” said Seymour.

While Canada's newly legalized recreational weed law sets up for a big growth opportunity, what’s also driving action is that the US market has the potential for 15 times the amount. 

Bullish on cannabis   

Vivien Azer, a beverage, tobacco and cannabis analyst at Cowen, says the cannabis industry will reach US$75bn by 2030. The top cannabis stocks she expects to outperform are Canopy Growth, MedReleaf which is now part of Aurora Cannabis Inc (TSE:ACB), and Kush Bottles Inc (OTCMKTS:KSHB), a medical wholesaler. 

“Investors simply can't afford to sit this megatrend out as real marijuana sales and profits are materializing,” said marijuana investor Alex Farmelo. “A majority of Americans are in favor of legalizing adult use cannabis and that bodes well for the future.”

According to an October 2017 Gallup poll, 64% of US adults are in favor of legalizing adult use cannabis - the highest level of support in five decades.

Arkansas, Florida, North Dakota, Ohio, Pennsylvania, and West Virginia passed legislation allowing medical marijuana in the past couple of years. California's recreational marijuana market opened earlier this year. 

Beware of short sellers

In a classic short-selling attack, pot stocks got smoked Thursday after Citron Research's Andrew Left came out with a vague report on Canadian cannabis company Cronos Group Inc (NASDAQ:CRON), giving it a price target of US$3.50. The market ate it up and Cronos dropped 28% on Thursday to around US$9.12 as 22 million shares were dumped. The stock has since bounced back 12.3% to trade at US$10.24 on Friday.

When asked whether Citron owns positions in Tilray or Canopy, Citron said it was shorting Cronos, according to Market Watch.

Citron’s note essentially cast a dark shadow over recent gains by Cronos, warning investors that while the end of prohibition in Canada is real, when the market shakes out, some of the 100-plus licensed producers will be decimated.

Citron alleged that Cronos was failing to reveal key details about its distribution agreements with Canadian provinces. “Cronos management appears to have been deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces – unlike every other major cannabis player,” warned the Citron note.

Investors who followed the herd, got caught up in Thursday’s panic-selling. Cronos stock recovered by the time trading resumed on Friday. “Some of these allegations appear to be unfounded and biased,” countered GMP Securities analyst Martin Landry of the Citron report.

Market Watch reported that in a note to clients Martin Landry said that Canadian provinces haven’t made fixed commitments to buy pot, rather that it was buying from a list of suppliers and would replenish the weed as needed — whichever products that sell the best. The provincial government-backed pot operations have “limited visibility” into what brands people will actually buy and so Cronos is being “prudent,” said Landry.

READ: Cronos Group comes under siege from short-seller Andrew Left's Citron Research; shares tumble

An investor could have sold into the panic, but here are the facts. Cronos announced one of the largest agreements to purchase a bulk amount of weed — 20 metric tonnes annually — which would amount to C$60mln (US$46.2mln) to C$80mln (US$61.6mln) in annual revenue.

According to Landry, Cronos has developed high-profile partnerships in the industry, which could make it a potential target for a global liquor-brand partnership.

According to experts, short interest in Canopy is 8.3% of the float, and in Cronos it is 12% of the float.

Expect high volatility

If the Cronos episode tells you anything, it is that pot investors must have nerves of steel and take the sharp swings in their stride.

“Expect these stocks to be very volatile,” said Arora. “Investors may want to take advantage of the volatility by selling into the strength and buying into the weakness.”

The extreme volatility also demand that investors should take advantage of opportunities to diversify their portfolio and not put all their eggs in one basket.

“One example is to diversify into stocks such as Zogenix, Inc (NASDAQ:ZGNX), GW Pharmaceuticals (NASDAQ:GWPH) and Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) and Scotts Miracle-Gro co. (NYSE:SMG) by scaling in on significant pullbacks,” wrote Arora in his report.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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Fri, 31 Aug 2018 12:51:00 -0400 https://ca.proactiveinvestors.com/companies/news/204003/are-marijuana-stocks-too-high-for-an-investor-tempted-to-join-the-party-or-do-they-have-room-to-run-204003.html
<![CDATA[News - Cronos Group besieged by short-seller Andrew Left's Citron Research, shares fall and end sharply up Friday ]]> https://ca.proactiveinvestors.com/companies/news/203919/cronos-group-besieged-by-short-seller-andrew-left-s-citron-research-shares-fall-and-end-sharply-up-friday-203919.html Shares in the Canadian cannabis group Cronos Group Inc (NASDAQ:CRON) have taken a tumble after the infamous short seller Andrew Left’s firm Citron Research delivered a pessimistic call on the stock.

In a note to investors and via its Twitter feed, Citron Research charged that Cronos is the “most overhyped” of all the pot stocks and set a price target of US$3.50 on the Ontario-based company.

$CRON tgt price $3.5. Everything that is contaminated about the Cannabis space. ALL HYPE with possible securities fraud. For full report go to https://t.co/rPKOW3IOdE

— Citron Research (@CitronResearch) August 30, 2018

The stock fell by 28.4% to US$9.12 in Thursday’s after-hours session. Those losses were extended early on Friday when Cronos stock on the Nasdaq in New York slid another 4.5% to trade at US$8.70 in premarket business.

But just as quickly, the stock reversed when trading got going on Friday. Shares climbed to a session peak of US$10.29 before ending 8.33% higher at US$9.88. The share rose 0.4% in after hours trade on Friday to US$9.92. In two days of trading, the stock had swung wildly from its lows to its highs.

Volume on Friday was at 43.465mln shares, more than five times the daily average volume of 8.05mln shares.  

In its biggest attack, Citron alleged that Cronos was failing to reveal key details about the size of its distribution agreements with the Canadian provinces. “Cronos management appears to have been deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces – unlike every other major cannabis player,” warned the Citron note.

Lack of transparency?

Sources told Citron that the reason for Cronos’s lack of transparency is that its distribution agreements are “so small they could never justify the premium investors are paying for the stock.”

Citron contrasted Cronos’s failure to disclose its contracts with releases put out by its rivals Canopy Growth and Tilray which list the kilograms of cannabis that are being supplied as part of their agreements with various provinces.

Despite having the first license to be issued by Health Canada in 2013, Cronos, which had revenue of C$3mln in its last quarter, has underperformed its competitors in the marijuana space such as Canopy, Aurora Cannabis and Tilray, and is “all talk”, Citron charges.

“Although the hype is big and the prohibition after 100 years is real, it is critical to understand that in the Canadian landscape there are over 100 licensed producers and there will ultimately be more losers than winners,” Citron said.

Canadian pot stocks have generated considerable interest in the markets ahead of Canada’s move to legalise all forms of marijuana on October 17.

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Thu, 30 Aug 2018 14:11:00 -0400 https://ca.proactiveinvestors.com/companies/news/203919/cronos-group-besieged-by-short-seller-andrew-left-s-citron-research-shares-fall-and-end-sharply-up-friday-203919.html
<![CDATA[Media files - CryptoCann™ Report: Bithumb exchange welcomes new users again after hack; Cronos enters the Latin American market ]]> https://ca.proactiveinvestors.com/companies/stocktube/10273/cryptocann-report-bithumb-exchange-welcomes-new-users-again-after-hack-cronos-enters-the-latin-american-market-10273.html Wed, 29 Aug 2018 16:20:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10273/cryptocann-report-bithumb-exchange-welcomes-new-users-again-after-hack-cronos-enters-the-latin-american-market-10273.html <![CDATA[News - Cronos moves into Latin America with plans to cultivate cannabis in Colombia ]]> https://ca.proactiveinvestors.com/companies/news/203812/cronos-moves-into-latin-america-with-plans-to-cultivate-cannabis-in-colombia-203812.html Cronos Group Inc (NASDAQ:CRON) is making its way into the Latin American market through its latest joint venture agreement.

The Canadian cannabis company is partnering with an affiliate of Colombian agricultural provider Agroidea SAS to create a new entity known as NatuEra.

READ: Cronos shares jump after reaching supply deals in Canada

News of the expansion sent the Ontario-based company’s shares rose 9.1% to C$15.70 in Toronto while the US-listed shares added 10% to US$12.02 in Wednesday morning trading on Nasdaq.

The newly formed company will set up a custom-built facility on 207 acres of land in Cundinamarca, Colombia. The tropical climate of the region is said to be well-suited for growing cannabis.

As per the 50/50 joint venture agreement, each partner will contribute capital to fund the construction of the facility. Construction will begin once the proper permits and approvals are in place.

"By leveraging AGI's expertise and Cronos Group's cannabis know-how, NatuEra will enable Cronos Group to create a cultivation and manufacturing hub in Latin America for our global distribution channels in a manner that minimizes region-specific and execution risk,” said CEO Mike Gorenstein in the company’s press release.

READ: Kaneh Bosm BioTechnology enters Danish market with Danavian deal

AGI has worked with several big-name clients, including food processors like Frito-Lay and McCain as well as agricultural suppliers like Bayer Agriculture and BASF.

The partners said they plan to create the cannabis industry’s first contract manufacturing organization in Latin America, allowing cannabis brands to outsource their development, cultivation and other manufacturing.

“We look forward to creating in NatuEra a CMO that will support the growth of the global cannabis industry,” said NatuEra CEO Nicolas Nannetti in the company’s press release.

Cronos currently has several international production and distribution platforms including in Germany, Poland, Israel and Australia.

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Wed, 29 Aug 2018 10:04:00 -0400 https://ca.proactiveinvestors.com/companies/news/203812/cronos-moves-into-latin-america-with-plans-to-cultivate-cannabis-in-colombia-203812.html
<![CDATA[News - CryptoCann™ Report: Judge orders hacker to pay bail in crypto; Canadian cannabis companies ink supplier deals in Ontario ]]> https://ca.proactiveinvestors.com/companies/news/203332/cryptocann-report-judge-orders-hacker-to-pay-bail-in-crypto-canadian-cannabis-companies-ink-supplier-deals-in-ontario-203332.html The National Science Foundation is awarding a six-figure grant to researchers at the University of California-San Diego for blockchain research.

Researched Subhashini Sivagnanam was awarded US$818,433 from the US government agency to help fund the development of a distributed ledger platform, as per a CoinDesk report.

Known as the Open Science Chain, the ledger would track and verify data collected by scientific researchers.

The grant will begin on September 1 and continue until August 2021.

READ: What exactly are Bitcoins and what are they for?

In crypto news, a US federal judge has ordered an alleged video game hacker to pay his bail in cryptocurrency.

A Serbian-Italian national was arrested at the San Francisco International Airport after allegedly hacking into Electronic Arts Inc’s (NASDAQ:EA) computer network and selling information from 25,000 accounts on dark market websites, as per a CoinGeek report.

The hack is estimated to have cost EA around US$324,000.

US Federal Judge Jacqueline Corley ordered the alleged hacker to post the equivalent of US$750,000 in cryptocurrency for bail.

While judges can request different forms of bail payment, it is not immediately clear why cryptocurrency was chosen. Corley was also the judge to rule against the Coinbase exchange when the US Internal Revenue Service requested information.

The Cann Report

Several Canadian cannabis companies have inked deals with the Ontario Cannabis Retail Corporation to supply the province.

The recently-public Tilray Canada Ltd (NASDAQ:TLRY) will be offering Ontario its portfolio of cannabis products.

READ: Cronos shares jump after reaching supply deals in Canada

The brands offered will include Marley Natural, a line inspired by musician Bob Marley, as well as women’s wellness brand Irisa and Canaca brand’s Canadian cannabis strains.

The list of suppliers also includes Aurora Cannabis Inc (TSE:ACB, OTCQX:ACBFF), OrganiGram Holdings (CVE:OGI OTCQB:OGRMF), VIVO Cannabis Inc (CVE:VIVO,OTCQB:ABCCF), Maricann Group Inc (CSE:MARI, OTCQB:MRRCF) and Aphria Inc (TSE:APH, OTCQB:APHQF).

Cronos Group Inc (NASDAQ:CRON, CSE:CRON) also signed a supply deal with Ontario as well as a handful of other deals.

The cannabis company signed supplier deals with BC Liquor Distribution Branch, Nova Scotia Liquor Corporation and Prince Edward Island Liquor Corporation.

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Tue, 21 Aug 2018 11:40:00 -0400 https://ca.proactiveinvestors.com/companies/news/203332/cryptocann-report-judge-orders-hacker-to-pay-bail-in-crypto-canadian-cannabis-companies-ink-supplier-deals-in-ontario-203332.html
<![CDATA[News - Cronos shares jump after reaching supply deals in Canada ]]> https://ca.proactiveinvestors.com/companies/news/203311/cronos-shares-jump-after-reaching-supply-deals-in-canada-203311.html Cronos Group Inc (NASDAQ:CRON) (CSE:CRON) (FRA:7CI) spiked in the premarket on Tuesday after announcing a clutch of cannabis supply agreements across Canada for the upcoming launch of the recreational market in October 2018.

Cronos said it has secured listing and signed binding master supply agreements with both the Ontario Cannabis Retail Corporation and the BC Liquor Distribution Branch. Combined, these provinces encompass over 50% of the Canadian population and hence the potential customer base which the company is prepared to serve.

The company added it has also secured listings and accepted supply terms with the Nova Scotia Liquor Corp and Prince Edward Island Liquor Corp. Cronos Group will be offering Dried Flower, Pre-Rolls and its highly rated Oils through both government-operated retail stores and online platforms across its three recreational brands.

Shares of Cronos in New York shot up more than 11% to US$8.14 in Tuesday Morning trading.

READ: Cronos Group reports jump in 2Q revenue and profit on booming demand for cannabis oil

Cronos Group plans to serve the Canadian recreational market through its bi-coastal production platform which includes facilities in British Columbia and Ontario. 

Excitement has been building in Canada because of legal recreational marijuana sales by October.

"Cronos is excited to provide our premium quality products to Canadian consumers for the upcoming legalization and launch of the recreational market," said Cronos chief executive Mike Gorenstein. 

Cronos Group is a globally diversified cannabis company with a presence across four continents. The company operates two wholly-owned Canadian licensed producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations. Cronos has multiple international production and distribution platforms in Germany, Poland, Israel and Australia.

Tilray also inks a deal

Tilray Canada Ltd (NASDAQ:TLRY) is also bringing its portfolio of cannabis products to Ontario’s adult-use market.

The recently-public Canadian cannabis company has signed an agreement of its own with the Ontario Cannabis Retail Corporation to supply the province of Ontario as of October 17.

Shares of Tilray were up nearly 9% to US$39.03 in Tuesday morning trading.

Tilray’s affiliate High Park Holdings Ltd will produce and distribute the products.

“Our goal is to deliver on the high expectations that Ontarians have of us by cultivating and distributing a portfolio of world-class adult-use brands and products that will lead the market in quality, excellence and craftsmanship,” said Adine Fabiani-Carter, Chief Marketing Officer at High Park, in the company’s press release.

The brands offered will include Marley Natural, a line inspired by musician Bob Marley, as well as women’s wellness brand Irisa and Canaca brand’s Canadian cannabis strains.

--Updated to include details of Tilray's agreement and latest share price

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Tue, 21 Aug 2018 08:08:00 -0400 https://ca.proactiveinvestors.com/companies/news/203311/cronos-shares-jump-after-reaching-supply-deals-in-canada-203311.html
<![CDATA[News - Cronos Group reports jump in 2Q revenue and profit on booming demand for cannabis oil ]]> https://ca.proactiveinvestors.com/companies/news/202858/cronos-group-reports-jump-in-2q-revenue-and-profit-on-booming-demand-for-cannabis-oil-202858.html The Canadian cannabis company Cronos Group Inc (NASDAQ:CRON, TSX:CRON) reported a sharp rise in its revenue and net income for the second quarter from last year, thanks to a jump in prices and demand for its cannabis oil.

In the second quarter, revenue climbed to C$3.4mln, a five-fold increase from the C$0.6mln the company posted in the year-ago period. Its net income also swung higher to C$723,000, up from C$174,000 in the same quarter last year.

Cannabis oil sales comprised 40% of its medical marijuana sales across Canada in the quarter.

Read: Cronos unveils cross-border joint venture with MedMen to develop branded products, open stores across Canada

“This quarter is about setting the stage and establishing Cronos Group’s strategy for future growth,” said CEO Mike Gorenstein in a statement.

"We pushed the business forward while achieving great milestones for the company and this is only the beginning," he added.

In the quarter, Cronos’s Australian division was granted a medicinal cannabis Manufacture License by the Australian Office of Drug Control, which permits the manufacturing of cannabinoid-based products in Australia.

Rolling up joint ventures

The Toronto-based company also entered into a strategic distribution partnership with Delfarma, a Polish pharmaceutical wholesaler with a distribution network of over 5,000 pharmacies. Under the deal’s terms, Cronos will supply its Peace Naturals branded cannabis products to Delfarma for distribution across Poland.

Cronos is also preparing for Canada’s recreational cannabis market with the launch of its first premium brand COVE, a high-grade form of marijuana which is hand-trimmed and comes from the Okanagan Valley in British Columbia.

Cronos’s other recent advances include a 50/50 joint venture with a group of investors led by Bert Mucci, a Canadian greenhouse operator. Under the new partnership called Cronos Growing Company, a greenhouse will be built for cannabis production on 100 acres of land in Kingsville, Ontario. Once the greenhouse is up and running, it is likely to produce up to 70,000 kilograms of cannabis yearly.

Read: Cronos shares slump due to first-quarter loss

Cronos has also entered into a five-year supply agreement with Cura Cannabis Solutions, one of the world’s biggest cannabis companies.

Last May, the trading of Cronos Group’s common shares, which trade under the symbol CRON and are also listed in the US on Nasdaq, were uplisted from the TSX Venture Exchange to the Toronto Stock Exchange.

Cronos is a cannabis company that operates within Health Canada’s Access to Cannabis for Medical Purposes Regulations and distributes globally. It has production and distribution platforms in Germany, Poland, Israel and Australia.

Cronos Group shares trading on the Nasdaq were flat at US$5.88 in pre-market trade.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Tue, 14 Aug 2018 08:08:00 -0400 https://ca.proactiveinvestors.com/companies/news/202858/cronos-group-reports-jump-in-2q-revenue-and-profit-on-booming-demand-for-cannabis-oil-202858.html