Will Cronos Group stock return to their peak?
Cronos Group Inc. is a relatively minor cannabis producer. Its main activities include producing and selling both cannabis and hemp oil, which it markets under the brand name Peace Naturals. The company is licensed to sell cannabis for medical use. Beyond Canada, it's also active in the Australian and Israeli markets.
According to Cronos Group's own projections, the company's annual cannabis production will exceed 47 metric tonnes (51 US tonnes) by Q1 2019. In light of the legalisation of the sale of cannabis for recreational use in Canada, Cronos Group has decided to open a chain of recreational dispensaries as part of a joint venture with American company MedMen.
In addition, Cronos Group has signed a 5-year exclusive distribution agreement with G. Pohl-Boskamp to supply its products to more than 12,000 pharmacies in Germany.
Recently, there has also been talk of a potential move by industry heavyweight Aurora Cannabis to acquire Cronos Group in a bid to increase its market share.
Cronos Group Inc. is listed on various stock exchanges, including the NASDAQ, under the ticker symbol CRON. Its share price currently stands at around $8.80, with a market capitalisation of approximately $1.5 billion. Stocks across the sector saw a sharp uptick following Canada's legalisation of cannabis for recreational use in June of this year and Cronos Group's stocks were no exception. They hit their peak of $13.75 per share on 20 September, which was then followed by a gradual downward slide that continues to this day.
Disclaimer: The information in this article is not intended to be and does not constitute investment advice or any other form of advice or recommendation of any sort offered or endorsed by Libertex. Past performance does not guarantee future results.
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