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This is known knowledge, look back thru this board's comments. It wasn't a pesticide, the contamination was limited to a room they had used a cleaning agent in. The Leafly article doesn't make a good differentiation in that paragraph between Hydropothecary's Myclo contamination and Peace's cleaning agent(piperonyl butoxide) issue. Again, look back at the chart, look thru this board's history, this was addressed and pps took a minor hit. I don't know if you're honestly just learning this now or trying to bring up old info to help depress the current pps.
Is Robinhood even a real trading platform? I see alot of complaints about it on various boards, seems really limited.
Wow, nice. That's a great deal
I recommended IB but yeah because OTC stocks are highly violatile, most brokerages won't let you short them or they want you to pay a high premium. Look up the 2.50 rule. I believe Tim Sykes also has a social media trading platform where people list their shorts, might be some info there. I forgot the name of the site, svelty or smelty or something like that it's called.
Puma's a market maker. You have to open an account with a brokerage that has shares available to short. If you're not familiar with the process, my advice is leave it alone. You can always learn up on it and short something in the future.
What sparked the volume and 21% increase today? I'm still holding this, been liquidating other crappy cannabis stocks and consolidating.
I'm out. Sold off last 20k yesterday and today. The block chain project is total BS to me and they seem to be moving away from the cannabis testing/analytics lab play that I originally got in for 2 years ago. Blockchain, vaporizers, paying millions for a small cultivator without a license, nano bioavailabilty research and development...MEH...been in this space for too long to know what all that means. Made a nice long term gain and putting into other plays like Cronos. GLTA!
Did u check Interactive Brokers?
Leafly: How Canada’s Cronos Group Became the First Cannabis Producer on the US Stock Exchange
https://www.leafly.com/news/health/how-canadas-cronos-group-became-the-first-cannabis-producer-on-the-us-stock-exchange
We have a few catalysts coming up ahead before the big Canadian legalization that will lift the whole entire industry:
Peace Naturals expansion:
The construction at Peace Naturals is on track to be completed this summer. Check thecronosgroup.com for video.
Australia:
We should here about export licenses soon and hopefully manufacture licenses soon after.
Israel:
Should be hearing export news soon. The Israeli government is serious about cannabis cultivation and exports. Again, this is a new emerging market and the Israelis are just double/triple checking everything before they open their country to be a worldwide cannabis exporter.
Germany:
We should hear more about sales when the new financials are released. I was just reading an article stating there's a pretty big shortage in pharmaceutical cannabis there.
There's others but I think those are the most immediate I can think of. Would love to hear about another distribution channel, there's been rumors of Poland who knows.
I've been consolidating over the last year, reducing my other holdings and putting it all into Cronos! I'm still holding around 10 other cannabis stocks but there's alot of crap out there. My main goal is to get it down to five or less. Cronos' management is solid and so far they've looked in the interest of shareholders. I initially entered this at .87usd so Cronos has done me very well!
Hope you feel better soon!
This is an emerging market, a market that's never been attempted before. All companies in this cannabis space are trading at multipliers well over what they're currently worth. Looking at management, assets, margins, and the industry as a whole are better identifiers IMO.
We're investing in the future potentials of the company and the cannabis industry as a whole.The best example I could really give is Amazon which CEO Michael Gorenstein constantly uses as an example when asked about market cap.
I suggest checking out the CEO's AMA(Ask Me Anything) on Reddit he did last month. He answers the market cap question and more. I suggest reading thru the one he did last year as well, so you can see what goals they've already completed.
This is Mike, CEO of Cronos Group. I'll be back tomorrow (2/21/18) at 4pm EST to answer your questions!
https://www.reddit.com/r/weedstocks/comments/7yz09c/this_is_mike_ceo_of_cronos_group_ill_be_back/
Welcome aboard Goodbuddy! Good to see you here!
Thanks gonna check this now.
SA Article: Cronos: Cannabis Unicorn With First-Ever Nasdaq Listing
Haven't read the article yet, I just automatically hit the comment section to smack a clown down lol. Will read tonight.
https://seekingalpha.com/article/4153661-cronos-cannabis-unicorn-first-ever-nasdaq-listing
Mar. 6, 2018 9:43 AM ET|18 comments| About: Cronos Group, Inc. (CRON), Includes: ACBFF, APHQF, HMLSF, MEDFF, MJ, TWMJF
Cornerstone Investments
Cornerstone Investments
Long only, special situations, medium-term horizon
(5,024 followers)
Summary
Cronos saw share price jump 37% this week after Nasdaq listing.
Market reached $1.9 billion, closing in on MedReleaf and Aphria.
Early-stage cannabis company with only $1 million in quarterly revenue, raising concerns over overheated valuation amid Nasdaq listing.
We are excited to introduce our Discover Cannabis series. Every week we will introduce a new cannabis company to our readers. Besides our Weekly Cannabis Report where we provide a weekly review p of key developments and trading updates in the cannabis space, we have been asked by readers to expand our coverage outside the large caps. Although we have repeatedly shared our views that small producers are inherently risky in the cannabis industry given that distribution channels are controlled by the government and market is likely to be oversupplied post-legalization, we still believe in the value of offering a broader coverage to our readers. Cannabis will be a large and diversified market with abundant opportunities for many successful ventures. Besides the large-cap names, we think investors could be well-served to learn about other up-and-coming players. With that, we are excited to start with Cronos Group this week after it made headlines last week.
Situation Overview
Cronos Group (NASDAQ:CRON) shocked the cannabis sector by becoming the first Canadian cannabis company to be listed on the Nasdaq. Cronos started trading on the Nasdaq under "CRON" on Tuesday and ended the week 37% higher. With $1.9 billion in market capitalization, Cronos has become top 5 cannabis companies in Canada by market capitalization. Another giant has been born in the cannabis industry and we think investors should take notice of it.
Cronos, Weed, Cannabis, Marijuana
`
Nasdaq Listing
Cronos' listing on the Nasdaq was a first for Canadian cannabis company. Cronos was able to supersede larger players such as Canopy (OTCPK:TWMJF), Aurora (OTCQX:ACBFF), Aphria (OTCQB:APHQF), and MedReleaf (OTCPK:MEDFF) to list on the Nasdaq first and the benefit has been evident in the share price. Cronos ended the week with its share price up 37% lifting its market capitalization to $1.9 billion. The listing has many benefits including better access to U.S. investors and enhanced liquidity. We think the initial pop might dissipate over time as the premium will eventually be taken over by reality. Other companies are also signaling that they will seek their U.S. listing soon. Canopy CEO last week told a group of audience that the company is under preparation to apply for a listing on the Nasdaq. Although no timeline has been given from Canopy we would expect an announcement in Q2 or Q3.
Operations Overview
Despite the recent listing announcement, Cronos has also been executing on its growth and expansion plan. The company operates a 70,000 sq. ft. existing facility with 7,000 kg of capacity annually through its subsidiary, Peace Naturals. Currently, the company is undergoing expansion including a state-of-the-art 286,000 sq. ft. indoor production facility and a 1,200 sq. ft. extraction lab. Cronos expects to reach 40,000 kg annual capacity prior to 2019.
Indoor facility expected to be largest purpose-built indoor cannabis production facility in the world, fully operational by Summer 2018.
(Investor Presentation)
Cronos also has a strategic joint venture with Kibbutz Gan Shmuel, named Cronos Israel. Gan Shmuel is one of the largest and most sophisticated kibbutzim in Israel, which already exports to 35 countries throughout Europe & Asia. Cronos boasted the ideal climate for cannabis production in Israel and Cronos claimed that it will be able to produce high-quality medical cannabis at an expected cost of between $0.40 and $0.50 per gram. Although no details have been given on how it defines cost. For details on how cannabis report cash cost differently, please refer to "The Complete Cannabis Guide #1 - Production Cost". Phase 1 of the JV includes a 45,000 sq. ft. greenhouse with 5,000 kg annual capacity. Phase 2 includes an increase of capacity to 24,000 kg annually. Cronos has in total around 5,000 kg annual capacity and is expecting to reach 40,000 after all planned expansions are completed.
(Financial Statement)
Distribution
As we argued in "5 Predictions For the Cannabis Industry" that capacity is becoming less relevant in today's environment. Health Canada has issued a large number of licenses and is continuing to issue new licenses every week, creating an abundance of supply looming to choke the market once this production comes online. We caution investors to focus on distribution and sales channel as that is where the money will be made in the future. Capacity is easy to replicate given the low barrier to entry in the cannabis space.
Germany
Cronos has an exclusive supply agreement with Pohl-Boskamp, an international pharmaceutical manufacturer, and supplier founded in 1835. Pohl has distribution into 12,000 German pharmacies and the opening of medical marijuana market in Germany has created a shortage of supply. Cronos exports its products through Peace Naturals.
(Investor Presentation)
Australia
Cronos announced the formation of its Australian joint venture in February 2018. Cronos Australia is a 50/50 joint venture between the Cronos and NewSouthern Capital. Cronos Australia will serve as the hub for its Australia, New Zealand, and South East Asia expansions. According to the company, Cronos Australia's first production campus will be located on 120 acres and will commence construction on the initial phase of its production platform with a 20,000 sq. ft. the purpose-built facility, with an expected annual production capacity of 2,000 kg. Further expansions are also contemplated.
IP Portfolio
Cronos prides itself on its portfolio of IP assets including over 150 unique cultivars. Custom has its own CO2 extraction equipment that removes the need for post-processing and maintaining the natural balance in its plants. Cronos also has a partnership for research projects with experts from Cornell University, University of Toronto, Hebrew University, Volcani Center, Fluence Bioengineering and P.L. Light Systems on a variety of topics. We think the genetics assets will become important if Cronos can establish itself as the industry standard which will lead to other upcoming LPs sourcing seeds from one of the 150 cultivars available at Cronos.
Financials
In the latest quarter (Q3 2017), Cronos achieved $1.3 million in revenue. The disclosure at Cronos is poor compared to others. The company does not disclose cash cost which is a key metric in the cannabis industry. Without cost information, it becomes extremely difficult to assess the competitiveness of its operations. IFRS rules obscure reported financials and investors won't have a clear picture of the operational performance based on current exposure.
There is really nothing surprising from these financials besides that Cronos is still a very early stage LP with an ambitious expansion but limited track record. It operates in a competitive environment and it has not secured any supply agreement. One could argue that there are certain risks to its current valuation given the lack of medical market presence and low sales.
(Financial Statement)
Management
We think the management is capable and has the right mix of skills and past experiences. CEO, Michael Gorestein, has a background in venture capital and corporate law. We think Michael's U.S. background helped him to steer Cronos to become the first pot company listed on Nasdaq. Going forward, we hope Cronos will focus on improving its periodical disclosure, securing distribution channel for its products and further derisking expansion projects.
(Investor Presentation)
Overvalued?
Cronos is at best called a start-up at the moment, compared to more established industry players. The $1.9 billion market capitalization seems hefty to us, as Cronos lacks the scale and supply agreements compared to larger players Canopy, Aurora, and Aphria. In the latest quarter, Canopy generated $21 million in revenue and Aurora booked $12 million while Cronos had $1 million. However, Cronos has $1.9 billion in market capitalization whereas Canopy has $5.5 billion and Aurora has $4.9 billion (excluding CanniMed). Cronos seems to trade at a lofty valuation based on its current revenue.
However, we think the Nasdaq listing which created over $500 million in market value for Cronos over a few days might have overheated the stock. We think as investors return to calm or other Canadian companies announced listings in the U.S., the listing premium in Cronos share price could dissipate.
`
Summary
Cronos has an entrepreneurial and experienced management team with deep knowledge of the U.S. capital markets. We aren't surprised by the first-ever Nasdaq listing from Cronos, but the spectacular run on its share price make us worried about an overheated stock. We would suggest investors remain on the sidelines on this stock given the valuations, especially comparing to other industry giants who have many times the revenue, capacity and track record. We think Cronos still has much to prove for itself in order to live up to the $1.9 billion valuations it has gathered so far. However, the significant interest from U.S. investors could very well continue to push the stock price higher. We think Cronos has done a commendable job in terms of garnering investor interest and media attention, but execution and results will eventually dictate long-term performance and the young company just haven't proved itself both operationally and financially. We are excited to see what it can do once legalization happens this summer.
Additional Resources
"Follow us" to receive our latest articles and investment ideas in the sector. We also publish a widely read Weekly Cannabis Report which is your best way to stay informed on the cannabis sector.
You will also benefit by reading our recent publications:
Which Marijuana ETF Is Best For You?
5 Predictions For the Cannabis Industry
Best Way to Play the Cannabis Industry
The Complete Cannabis Guide #1 - Production Cost
The Complete Cannabis Guide #2 - Production Capacity
The Complete Cannabis Guide #3 - Consumption
We also publish a Discover Cannabis series where we introduce one new cannabis company to our readers every week:
Emerald Health: West Coast Cannabis Player With Biotech Focus
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
Hey Plowmaster, I don't have PM. Check the intro box, I got a link to SEDAR.com in there. You can check financials there. Or CronosGroup.com\investor relations. All financials will be in Canadian dollars. The MD&A is a good read, I had double checked there last night and saw they don't hold equity in Hydropothecary anymore. I guess now that they're on the Naz, they'll release US currency versions and post on their site and the SEC's site.
Mike Gorenstein 6 Minute audio interview. I hadn't heard this one yet. Listen to the CEO explain in depth what the company does, what they sell, where they operate and their global plan.
I love that he finally mentions the Cayman Islands.
https://www.bloomberg.com/news/audio/2018-02-28/first-cannabis-stock-on-nasdaq-cron-distributes-globally-ceo
Welcome Plowmaster! You came at a great time, we should see many catalysts over the next coming months.
Yup, this is a good move.
CRONOS GROUP CHANGES CANADIAN TICKER TO CRON
http://thecronosgroup.com/press-release/cronos-group-changes-canadian-ticker-to-cron/
TORONTO, March 5, 2018 /CNW/ – Cronos Group Inc. (Nasdaq: CRON) (TSX-V: MJN) (“Cronos Group” or the “Company”) is pleased to announce that the Company is changing its ticker on the TSX Venture Exchange from MJN to CRON.
This change is effective immediately for trading commencing on Monday, March 5 and is being made to conform to the ticker symbol that was selected when Cronos Group became the first pure-play cannabis company to trade on the Nasdaq on February 27, 2018.
I have to agree. It's an interesting issue. They don't touch the plant at all but their business solely relies on the US marijuana market which theoretically could collapse because of politics and enforcement(not going to happen). But the Naz wants nothing to do with federal illegality.
There's alotta hopeful jealous Canopy fans spreading rumors that Canopy will uplist soon but all I've seen is Linton saying that it was a goal but it got pushed to the side for the Constellation deal. Anyway, it'd take 6-12 months for them to uplist, I believe.
Either way since Cronos owns some equity in Canopy, if they uplist it'd be great for us! lol
Capital Ideas TV, Special Cannabis Episode: CEOs of Cronos Group
11 minute segment on Cronos
I'm not sure, but this Forbes article suggests that it's not right now, but was when it was PRMCF on the OTC.
Same company, two different tickers for two different exchanges with different currencies.
Thanks haven't seen this one yet
This was the OTC:PRMCF board originally created a few years back. It was originally for the MJN ticker but it wasn't setup right, and was referencing NYSE:MJN. I changed it to OTC:PRMCF years back and now this week, the company is NASDAQ:CRON. I strongly advise reading thru the history if you have time!
The other board was created by Guay more recently for the Canadian ticker MJN on the TSX Venture exchange. Same company just different currencies. Follow both and use whichever is your preference.
USA TODAY - Nasdaq lists its first 'pure play' marijuana stock
https://www.usatoday.com/videos/money/2018/02/27/nasdaq-lists-its-first-pure-play-marijuana-stock/110900430/
Welcome, great job...GLTY!
There are requirements to uplist to NASDAQ(Which I believe Kush has fulfilled already). But just because Nick hasn't released any info on uplisting doesn't mean they're not pursuing it. Cronos recently uplisted to the Naz surprisingly, and they never mentioned it as one of their goals. Maybe Nick and team don't want to go out like MassRoots who publicly announced their uplisting attempts and got denied.
I think today is the day I count my losses, sell off on this and other non-performers and put all money into CRONOS. Can't be bothered anymore.
Doesn't look like there's any volume. Could be halted. Did they close on that deal to buy out that cultivator yet? I sold my position, end of January at $1.11usd . I'm watching for a new entry but that deal may not be done yet. I haven't been following.
I see it but there's no premarket or after hours trading with pennystocks. The real price will show at the bell.
Michael Gorenstein, CEO of @CronosGroupMJN, the first cannabis company to list publicly on Nasdaq, explains how supply shortages makes it necessary to keep medicinal and recreational marijuana businesses separate so that patients don't lose access. $CRON #CannaBiz #CheddarLIVE
Michael Gorenstein, CEO of @CronosGroupMJN, the first cannabis company to list publicly on Nasdaq, explains how supply shortages makes it necessary to keep medicinal and recreational marijuana businesses separate so that patients don't lose access. $CRON #CannaBiz #CheddarLIVE pic.twitter.com/AePJvJ60Ye
— Cheddar (@cheddar) February 27, 2018
Thanks Farviewhill! I feel like I've been slacking a bit with forwarding info around, been so busy. I started listening to that interview but haven't even got to finish yet.
CRONOS is on Stocktwits now! I love that I can turn on Bloomberg, Fastmoney, Mad Money and all these mainstream media channels and actually hear about a stock I'm deeply invested in lol.
https://stocktwits.com/symbol/CRON
lol yes I'm satisfied. It's funny, there was definitely trading yesterday but the chart is showing nothing for yesterday. So not sure what was going on yesterday.
Michael Gorenstein, Cronos Group CEO, discusses how his company became the first Cannabis company to be traded on the Nasdaq. He speaks with Julia Chatterley, Scarlet Fu and Joe Weisenthal on Bloomberg's "What'd You Miss?"
https://finance.yahoo.com/video/first-cannabis-company-trades-nasdaq-221815654.html
Weird day. This is down after newly announced as the first weed stock on the NASDAQ and bum ass Abattis is up almost 20%...makes no sense at all.
Mags, check out the PRMCF board for more info! I got into this one around 2-3 years ago at .87usd. It's traded as high as 11 bucks and right now around 7 - 8 bucks.
Mike Gorenstein and team run a tight ship, came in and totally changed the direction of the company.
Mike just did his 2nd AMA(Ask Me Anything) on Reddit last week(I strongly suggest checking the 1st one he did last year as well) - https://www.reddit.com/r/weedstocks/comments/7yz09c/this_is_mike_ceo_of_cronos_group_ill_be_back/
I always thought Kush would be first on the NASDAQ and Cronos would go to the Toronto exchange like Canopy but I'm not mad at all! This will be a game changer. The 1st cultivator/processor/global cannabis exporter on the NASDAQ!