Will Cronos Group shares return to the peak?
07 Dec 2018
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 and, beyond Canada, it is 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 tons (51 US tons) by Q1 2019. In light of the legalization 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 $8.8, with market capitalization of approximately $1.5 billion. Stocks across the sector saw a sharp uptick following Canada's legalization of cannabis for recreational use in June of this year and Cronos Group's shares were no exception. They hit their peak of $13.75 per share on September 20, which was then followed by a gradual downward slide that continues to this day.