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 [email protected]