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Oh the writers at TMF have a hard on for Cronos smh. I haven't figured out their angle yet. I feel like Gorenstein's been sending subliminal shots back at them too.
VIDEO: Cronos Group Inc (NASDAQ:CRON) Cannabis Production Backstage Pass
https://midasletter.com/2018/04/site-tour-cronos-group-inc-cannabis-production-backstage-pass/
CANNABIS – NEWS – RECOMMENDED – VIDEOS
VIDEO: Cronos Group Inc (NASDAQ:CRON) Cannabis Production Backstage Pass
Midas Letter Films
MIDAS LETTER FILMS | 15 HOURS AGO
Cronos Group Inc (NASDAQ:CRON) (CVE:CRON) (FRA:7CI) showed us around their Peace Naturals facility in Stayner, Ontario, Canada where there was a lot of high tech stuff going on. They are currently building the world’s largest, purpose built, indoor cannabis growing facility. Cronos also has a sizeable greenhouse operation which will start production anytime now as well because they want to be able to leverage their diverse expertise anywhere in the world it makes sense to do so. They also showed us a strange and exciting bud they developed casually referred to as ‘white walker’ because of it’s signature white colour. After visiting their top-notch Peace Naturals facility, it’s clear that The Cronos Group belongs among the top companies in the cannabis space.
TRANSCRIPT:
Mike Gorenstein: I was at a fund where we looked at everything and anything, and we saw Peace Naturals key: the largest land package of any of the licensed producers, access to free, onsite water, methane co-generation Phase III power…so it was a huge advantage. This was the first facility to get licensed under the MMPR. It’s exciting to see what we’ve done with this, and where we’ve gone since.
As you can hear, the extraction machine is working away. That extraction machine is working 24/7; we can actually control them from the phone.
We wanted to make sure everything was easy for people to join the company. So you’ve got Building 1, Building 2, Building 3 – very creative names – Building 4.
So, welcome to Peace Naturals. As a licensed producer, we don’t want patients to come to us for medicine because it’s legal; we want them to come to us because of the quality. Quality is the Number One priority.
This is a proprietary strain we have called Infinity. This is a very high THC strain, and that’s quite popular in Germany right now, and if we were to allocate all of our supply to Germany, it still wouldn’t scratch the surface. But for us, it’s a balance, and we’re a Canadian-based company, and we want to take care of Canadian demand first. And as you can see, this is still two weeks from maturing; the leaves haven’t gotten to the point where you start seeing colour adding during flush, but that’s the quality and the care you put into each plant to be able to have something that’s differentiated.
So one of the things we do at Cronos Group is use different light spectra and different genetics in strain-specific rooms to get different effects and different results. And to do that, you have to switch things up a little bit.
Lasse Schulze: So here in this room we have the very purple spectrum, which has a lot of blue and a lot of red, which creates a purple colour. And with this purple colour, we are able to capitalize the production in these cultivars, create a photo bleaching effect and create a white flower which is very unique in the cannabis space.
Mike Gorenstein: This is Building 4, this is the largest purpose-built indoor facility in the world. I don’t know if you can even pick it up on the camera how far it spans and how wide it is. Just say, you don’t want to forget your keys in the facility; it’s a long walk.
You think about it, when you’ve got a baby plant, if you were to leave that in one room the entire time, you’re getting much less efficiency than if you had that in a room specific where the plants are closer together. So we divided, and then the benches will automatically move the plants into the appropriate stage, and as they get larger, they take up more space and they move into rooms specifically designed for flower.
Is it best to have poly, diffused poly, glass, diffused glass? The one you’re looking at now is glass, but if you walk over to this head house, you’ll notice this is a diffused poly, so it’s a little bit different in the way that it deals with the light. It’s making sure that when we move into some of the other jurisdictions, right now there are parts of the world where it does make a lot of sense to do greenhouse versus indoor. We already have the technology, we know exactly how our genetics perform, and we’re able to roll things out seamlessly and efficiently.
Lasse Schulze: We’re not just engaging in accumulating and adopting the best practices from the horticultural and agricultural industry, we are also hiring scientists including myself with PhDs that are able to evaluate whether best practice is applicable to our growing methodology. That way, we are staying always on top of the game, and able to grow the highest quality cannabis and having the greatest yields.
Mike Gorenstein: Science!
Lasse Schulze: So what we are looking here in a good harvest and a good plant structure is very tight nodal spacing to allow for big buds development. That’s something that our customers really like and appreciate.
David Hsu: You know, like we’re in nice finance jobs, New York City, Manhattan, and what we’ve built from just this barn when Mike first brought me up here, it is absolutely incredible. We’re now making Staynor, Ontario our home, and we’re building an amazing team. We have over 100 employees now. I’m so happy to be in Canada, and we’re loving every minute.
Mike Gorenstein: Look at alcohol. Which alcohol company is the best because they produce the most or the cheapest? It’s who has the best beer, who has the best wine, who has the best liquor, and that’s what our focus is, is product quality.
The Cronos Group CEO Mike Gorenstein Talks About Growing Marijuana!
Historically the sector doesn't do well leading up to and around 4/20. But we're experiencing a synergy of recent catalysts that should lift the sector:
-Trump's recent statements supporting states rights and continuing a hands off approach on states who've legalized cannabis.
-FDA announced today they're approaching approval of the CBD based drug Epidiolex. If/when finally approved, this could possibly lead the way for cannabis rescheduling.
-Senate minority leader Chuck Schumer's newly announced marijuana bill.
-Former House Speaker John Boehner's announcement he's now an advisor for a cannabis company.
-MedMen opening a medical store on 5th ave in midtown NY.
-NY Governor hopeful Cynthia Nixon and her legalization centered campaign.
-Senator Bernie Sanders support of the Marijuana Justice Act.
Great finish!
Gorenstein and Adler bought 400k shares the other day! That's a GREAT sign.
https://www.canadianinsider.com/node/7?menu_tickersearch=cron
https://www.sedi.ca/sedi/SVTItdSelectIssuer?locale=en_CA
Midas letter article on yesterday's sell off in the weed stock sector
https://midasletter.com/2018/04/canopy-growth-50-day-ma-failure-triggers-industry-wide-selling-event/
Historically, the weed sector drops pre 4/20. You can compare against last years. Pops on election news in November into the new year and then gets sold off in March. Around this time and (and especially last year) was worse cause of the present administration. That's been the unneeded variable.
The sector's definitely being controlled by bears right now. CRON tracks Canopy, which is down as well.
I've been holding cash waiting for a retracement to February's lows and looks like we'll see that this week(hopefully). I'll be averaging up on anything under $5. Missed the chance in February but won't miss now. Wednesday - Friday is going to be interesting. Hopefully I can get a cheap re-entry in Canopy as well.
California's MedMen, known for cannabis 'Apple stores,' coming to Canada
Adam Bierman, CEO of MedMen, joins BNN to talk about MedMen’s deal with Cronos Group and their plan to publicly list on the Canadian Securities Exchange.
https://www.bnn.ca/video/california-smedmenknownforcannabis-applestores-comingtocanada~1361063
Saw this on another board. Thought about posting it but meh since I sold earlier this month, I don't care lol. GLTA!
Cronos and MedMen have formed a 50/50 venture called MedMen Canada. More details to come, right now we know MedMen will be opening branded retail stores all over Canada using The Cronos Group's weed. MedMen can not bring their IP in the US to Canada. They will be developing new products together.
The only way to invest in MedMen right now is thru CRON(NASDAQ or TSX.V). MedMen plans to RTO and list on the CSE later this year. This will give Canadians exposure to MedMen directly. Expect that if/when cannabis scheduling changes in the states, Cronos will have a US position overnight with this relationship.
Cronos Group Upping Its Branding Game - Could Pay Off In The Long Term
https://seekingalpha.com/article/4158271-cronos-group-upping-branding-game-pay-long-term?v=1522109007&comments=show
Yup! My order came closer but didn't hit. Will try tomorrow. I'm too frugal.
Man, we'd be rich if we knew why. Meanwhile BS companies like Terratech are up 10% smh makes no sense.
I own 13 weed stocks and most are getting shitted on today. Not sure what market you're looking at. No one can tell you when to buy/sell, you're supposed to analyze the chart and use your DD of the company and market to figure that out. The company is solid so this is just a buying opportunity. I have my order in and I'm just patiently waiting...
jokes...we like to call out real targets. Otherwise you lose all credibility.
The McConnell news is good for this stock.
MedMen Leaps Into Canadian Cannabis Market For Joint Venture With Cronos Group
https://www.forbes.com/sites/marycarreon/2018/03/23/medmen-leaps-into-canadian-cannabis-market-for-joint-venture-with-cronos-group/#663011ca6d39
MAR 23, 2018 @ 06:56 PM
Mary Carreon , CONTRIBUTOR
I cover the cannabis industry, environmental impacts & regulation
MedMen, the Los Angeles-based "unicorn" of cannabis retailers, has positioned themselves for an opportunity to place a stake in the slowly growing global cannabis market. On Monday, the billion dollar company announced a first-of-its-kind cross-border joint venture with Cronos Group, the Canadian licensed medical cannabis producer, manufacturer, and distributor. MedMen Canada will develop branded products and open stores across Canada--likely by the end of 2018-- blending MedMen's class-defining retail experience with Cronos' Canadian reach and expertise.
"Canada has been on our radar for a while," says Daniel Yi, senior vice president of MedMen's corporate communications. "Late last year, Cronos approached us about this. We decided to move forward with this project because Cronos is a leader in the Canadian market and they share the same hyper-focus we do when it comes to business, quality, and changing and advancing the perception of cannabis."
The collaboration is a symbiotic union of industry giants who share a vision of making cannabis a global business. Currently, Cronos ships flower to a distributor in Germany, which is then distributed and sold in thousands of German pharmacies--where patients get real doctor's prescriptions for cannabis and are reimbursed by insurance, according to Cronos' CEO, Mike Gorenstein. They have a grow operation in Israel, too--where cannabis research is performed by doctors and scientists. Cronos' Israeli-grown flower is then distributed to countries all over Europe. Additionally, they also have a footprint in Australia, where they just received a cultivation and research license. And finally, Cronos was listed on the NASDAQ three weeks ago.
In return, MedMen will give Cronos Group multiple sophisticated retail locations. But unlike California, the cannabis supply chain in Canada currently doesn't permit dispensaries. Rather, when a product gets to the distribution part of the chain, it's delivered straight to patients' doors. Thus, MedMen is likely to revolutionize Canada's retail market because normalizing cannabis is built into the shopping experience, and their stores have a clean, Apple store-like aesthetic. Additionally, MedMen has cultivation factories and stores in California, Nevada and New York. They also recently announced that the company will go public on the Canadian Securities Exchange in the second quarter of this year.
"Everyone leaves MedMen feeling differently about cannabis," says Gorenstein, who took my call from Israel. "It's one thing when people tour our facility now and are shocked by how big it is and see the scientists we work with or talk to our horticulturalist who has a Ph.D. from the University of Toronto. But to have a retail store where you can see all the products and have an experience around cannabis-- we take that very seriously. MedMen has separated themselves without question from the competition, which is why we want to work with them. It's going to be a great addition to the Canadian market, especially because there are no retail stores here."
But the MedMen/Cronos collaboration also sheds light on another trend: America's fascination with Canadian cannabis. As soon as the Medicinal and Adult-Use Cannabis Regulatory and Safety Act (MAUCRSA) was implemented on Jan. 1 in California, the focus of investors, CEO's and entrepreneurs shifted to Canada-- where adult-use and commercial cannabis will be federally legal in July. Yi explains that the Canadian market is about the size of the California market: huge, in other words. But the source of this fascination comes from the fact Canada is its own massive market, whereas the American market still ceases to exist because state regulatory frameworks vary from state-to-state, and it's still federally illegal.
"There is great infrastructure in Canada," says Yi, emphasizing how important regulation is. "In Canada, medical cannabis became federally legal in 2013, so a regulatory framework has been in place for a while. So when adult-use comes on board it's going to piggyback on the framework that already exists. Thus, from a business perspective, you're going into an arena where the rules are much clearer and there's significantly less uncertainty. It's the infrastructure in Canada that makes it attractive from an investment and business perspective."
Gorenstein, who's originally from the U.S and moved to Canada specifically for cannabis, says he believes the fascination with the Canadian market is because it gives a glimpse into what the U.S. market could be if (and, hopefully, when) America legalizes cannabis on the federal level. "Based on all the polling data I've seen, it seems that most Americans would like a federal legal system," he says. "What's fascinating, though, is now people in the U.S. can actually watch, observe and learn from the neighbors to the north and see how amazing the industry is, and how many private sector businesses are thriving. People will realize, they already do, that what's happening in Canada can happen in the U.S."
MedMen's leap into the Canadian market is also an indicator of how fruitful Canada's industry is likely to be, considering they don't make business moves unless they are executable, Yi explains. The union of the two cannabis groups is, none the less, a peek at how the industry will evolve. "I think this is a huge milestone for the industry as a whole," Yi says. "This isn't just conceptualizing what the future is going to look like. MedMen and Cronos are two top-tier companies in cannabis moving forward with real projects, and I think that says something about the evolution of our industry as a legitimate industry, and I think it portends bigger things for the future."
link?
Wow just saw. Damn I guess I missed out on today's sale smh.
Cronos Group Upping Its Branding Game - Could Pay Off In The Long Term
https://seekingalpha.com/article/4158271-cronos-group-upping-branding-game-pay-long-term
Gary Bourgeault
Long only, research analyst, portfolio strategy, media
Summary
Cannabis producers will eventually face a commodity crisis.
Cronos Group trying to get in front of the game by embracing an aggressive branding strategy.
The small company is attempting to position itself as a bellwether in the cannabis sector.
I like some of the swagger Cronos Group (NASDAQ:CRON) has been engaging in lately, as the company beat its Canadian rivals to being listed on the Nasdaq, the first Canadian cannabis company to do so, and recently announced it entered into a deal with major U.S. brand MedMen to build a branded retail business in Canada.
It followed that up with an announcement it has entered into a C$100 million bought deal with a "agreement with a syndicate of underwriters co-led by GMP Securities L.P. and BMO Capital Markets."
The consistent string of accomplishments and marketed announcement has brought the company much more attention, and is now on the radar of a lot more investors.
More important in my view is it appears to me it's trying to upstage its larger competitors by taking some of their thunder with it series of strategy wins.
The market is talking about Cronos being the first to be listed on Nasdaq, and landing a deal with one of the more recognizable retail cannabis brands in the U.S. This has given it the sense of being a bellwether for the industry, resulting in, to its credit, disproportionate impact when measured against its size in comparison to it peers.
Cannabis business likely become a commodity
One of the major long-term challenges for cannabis producers is dealing with the strong probability of that segment of the market becoming a commodity. That means only a couple of major winners that could compete primarily on price.
This won't happen in the near term, but once the Canadian market in particular discovers the size of legal demand, and production aligns with market demand, there won't be a lot to differentiate brands from then on.
That's not to say there won't be marketing attempts to brand marijuana strains, only that I don't think they'll take in the same way cigarettes have in the past. From that point of view, if a company can brand a specific product as higher end, it could gain an advantage. But with regulations being tough, it would be a gamble if brands are brought under a microscope to determine whether or not there is legitimate differentiation from other brands.
Having said that, Cronos has taken the step to strengthen its brand in Canadian retail with its 50/50 joint venture with MedMen Enterprises.
While there will be some focus on developing targeted pot brand recognition in the venture, which will be sourced from Cronos, the most important element of branding in my view is the stores themselves.
In its U.S. stores MedMen has developed an appealing design that caters to more of a mainstream consumer. That should benefit MedMen Canada as it provides a comfortable and desirable shopping environment to some that may be concerned about the overall quality of the shopping experience.
If Cronos can position itself as a branded market leader in cannabis retail stores, it could generate a lot of revenue and earnings for the company over time.
As mentioned earlier, I think it'll be tough to brand individual pot strains, so I think branding the experience of the stores first, will position the company to enjoy a competitive advantage. It's a long-term strategy, but one that will probably pay off in the long run.
I draw that conclusion from the idea if it can brand the shopping experience, it'll be able to further leverage that with the already recognizable MedMen brand products.
Cronos as a bellwether?
Cronos CEO Mike Gorenstein, said this in a press release:
Cronos is focused on changing the perception of cannabis on an international scale, and we prioritize working with best-in-class partners who share our vision for the future.
What Cronos has done so far over the last several months has been very effective, and it appears to me it's working on becoming a bellwether for the cannabis industry, as suggested by Mr. Gorenstein above.
Its acceptance by Nasdaq probably underscores this as a priority more than any other action the company has taken. All around the media it was noted that Cronos was the first Canadian cannabis grower to be listed on an American exchange. That catapulted the company to a much higher position in regard to market mind share, which is part of being a bellwether. It also has given it more respect and influence than it had ever had.
What the Nasdaq listing has done is given the Canadian cannabis sector more acceptance, moving it out of the shadows into the light of the international markets.
That improved respectability should loosen up the purse strings of some institutional investors as well; not only for Cronos, but for other cannabis companies too.
Based upon its Nasdaq listing and important joint venture with MedMen, I see the company as a bellwether of the Canadian pot market, and we should see similar actions from its peers in the months ahead.
What's impressive to me is the company has pulled this off with a lot smaller market cap than a number of its competitors, along with lower capacity and sales. That could change fairly quickly because of its recent announcement is has entered into a C$100 million bought deal.
Of the C$100 million, Cronos said it will use C$15 million for expansion of its capacity and CapEx associated with global operations. The rest of the capital raised will be used for "general working capital purposes, including working capital for the Company's international operations, and as capital on hand for potential new investment opportunities."
Conclusion
In the past, Mr. Gorenstein has said, "We don't believe cannabis is a commodity." I believe he's right and wrong in that statement.
He's right in that there is probably going to be a few brands that break out in the sector, with the rest in fact coming under pressure from failure to convince consumers there is significant differentiation between the various strains that are grown.
Where I believe he's wrong is in regard to the overall industry. With the initial legalization of recreational of pot in Canada, and the resultant soaring demand, after a time it's almost certain that users won't be convinced of the attempt to brand pot from different companies and growing areas.
We may find out there are a few that are different in the same way coffee beans from different regions of the world have a distinct flavor. But I don't see that happening across the board, or even with a lot of different growers.
There will probably be a range of strengths of the pot, but that will be the case in all the marijuana that is produced.
That's why I like the way Cronos has successfully branded itself in the eyes of consumers, potential partners, and investors. The actions it has taken reinforce the vision of Mr. Gorenstein to make cannabis an acceptable and legitimate business around the world. This will help raise the value of all the quality pot companies, but it'll do even better for Cronos in my opinion.
With its Nasdaq listing, MedMen branding strategy, bought deal financing, international expansion, and the Canadian recreational pot market being legalized in the second half of 2018, I like what I see with Cronos; especially the way it has managed to position itself as an industry leader in the eyes of the public and financial community. It makes me confident it will be able to deliver in other areas as well as it scales out.
It has a sound strategy it is delivering on, and has initiated a stream of actions that is keeping it at the forefront of those interested in the cannabis market it competes in. For those reasons I think Cronos could surprise a lot of people over the long term.
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.
The base is set in now at 7.45usd(9.60cad). I have a buy order in but hasn't gotten close yet. The 1st half hour didn't really see much go below that base. It's your call on sell or hold but I'm holding and buying today, tomorrow, gotta see.
He said he posted this on the Rb.h board first. Check there, it's there. And he mentions Notman on their board. He doesn't mention anything about Cronos except the JV. MedMen can't RTO into Cronos, that'd be a deal on the scale of the cannimed takeover. Alot of cannabis companies use shells to RTO into so they can list quickly.
I've never heard of Russell Breweries and don't know what they are, I'm just following this guy's post which is 100% speculative. He's basically saying, buy Russell Breweries and MAYBE this will be the company Medmen RTO's into. You'd be buying in cheap and get a quick profit...Totally speculative!
So he's saying he thinks Medmen will RTO into Russell Breweries? Ok...
So, $100mm(115 mm over allotment). No warrants or debentures.
This is just a huge stock sale with a small discount close to today's pps. This will set the base price in at 7.45usd(9.60cad).
Im just wondering why they needed to do this. They must be planning something big. Either a huge acquistion or a big construction project other than in Israel or Australia. They aleady had that other 48mm raise and have that credit line. So they gotta be ready to buy something big. Just a guess. I think they're going to announce a large acquisition soon. Knowing them, tomorrow, they'll announce OGBC expansion and have pics of it already underway or something. That's how they roll, they don't speak until something's actually going on.
Canadian dollars. Check the bottom of the announcement on The Cronos Group's page.
CRONOS GROUP INC. ANNOUNCES $100 MILLION BOUGHT DEAL
http://thecronosgroup.com/press-release/cronos-group-inc-announces-100-million-bought-deal/
TORONTO, March 21, 2018 /CNW/ – Cronos Group Inc. (NASDAQ, TSX-V: CRON) (“Cronos Group” or the “Company“) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P. and BMO Capital Markets to sell 10,420,000 common shares (11,983,000 common shares if the over-allotment described below is exercised in full) of the Company, on a “bought deal” basis, at a price of $9.60 per common share, for gross proceeds of approximately $100.0 million (approximately $115.0 million if the over-allotment option is exercised in full).
The Company intends to use $15.0 million of the net proceeds of the offering for capital expenditures relating to international operations and capacity expansion, and the remaining net proceeds of the offering for general working capital purposes, including working capital for the Company’s international operations, and as capital on hand for potential new investment opportunities.
Completion of the offering is subject to, and conditional upon, the receipt of all necessary approvals, including approval of the NASDAQ Global Market and the TSX Venture Exchange and the applicable securities regulatory authorities. The offering is expected to close on or about April 6, 2018.
Cronos Group has also granted the underwriters an over-allotment option to purchase up to an additional 1,563,000 common shares on the same terms and conditions, exercisable in whole or in part at any time and from time to time up to 30 days following closing of the offering.
Cronos Group has filed a preliminary short form prospectus with securities regulatory authorities in all of the provinces of Canada other than Quebec and has filed a registration statement (including a preliminary prospectus) in respect of the offering with the U.S. Securities and Exchange Commission (“SEC”). The preliminary short form prospectus and registration statement (including the preliminary prospectus) are subject to completion and amendment.
The registration statement relating to the common shares has been filed with the SEC but has not yet become effective. The common shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. In Canada, there will not be any sale of common share or any acceptance of an offer to buy common shares until a receipt for the final short form prospectus has been issued.
The prospectus contains important information about the offering. Before investing, you should read the prospectus and other documents the Company has filed with Canadian securities regulatory authorities and the SEC for more complete information about the Company and the offering. You may get those documents filed with the SEC by visiting EDGAR on the SEC web site at www.sec.gov or those documents filed with Canadian securities regulatory authorities by visiting SEDAR at www.sedar.com. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it from GMP Securities by calling toll-free at 1 (888) 301-3244 or by email at GMPECMProspectusDistribution@gmpsecurities.com or from BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario L6S 6H2 by calling (905) 791-3151 ext: 4312 or by email at torbramwarehouse@datagroup.ca.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any common shares, nor there be any sale of common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Preliminary 2017 Financial Year Results
Cronos Group has also announced that, based upon information currently available to management, it anticipates reporting revenue of between $3.8 and $4.4 million for the twelve months ended December 31, 2017 (“FY 2017”), compared to $0.6 million for the twelve months ended December 31, 2016, with the year-over-year increase resulting primarily from higher unit sales, driven primarily by (i) increased patient registration and demand, as well as (ii) the fact that FY 2017 results included Peace Naturals Project Inc. (“Peace Naturals”) revenues for the entire period whereas the 2016 financial year results included Peace Naturals revenues only from September 2, 2016, when the Company acquired Peace Naturals, until December 31, 2016.
All figures reported above with respect to the FY 2017 are preliminary and are unaudited and subject to change and adjustment as the Company prepares its consolidated financial statements for the years ended December 31, 2017 and December 31, 2016. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. The Company is issuing preliminary results to enable it to disclose such information in connection with the offering, and readers are cautioned that the preliminary results may not be appropriate for other purposes; the Company does not intend to provide preliminary results in the future. The preliminary results provided in this news release constitute forward-looking statements within the meaning of applicable Canadian securities laws, are based on several assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially. See “Forward-looking statements”.
Cronos Group anticipates releasing its consolidated financial statements for the twelve months ended December 31, 2017 and December 31, 2016 on or about Monday, April 30, 2018.
All references to “$” in this press release are to Canadian dollars.
Yeah I think so too. Brochstein has a write up saying it's in Canadian too. That would be $7.45usd today
This guy Cramer recommended Constellation instead of Cronos smh pfft. Constellation shares are selling for $226 and has a 39Bn market cap. Not even comparable IMO.
Doing a chain of dispensaries the right way(which MedMen excels at and Cronos has never done), costs alot of money. Money for locations, construction and design, staff, etc. Doing this JV with MedMen should mean minimal money out of Cronos pockets and more importantly minimal or no dilution which will all help shareholder value. Look at Terra Tech as a good example of management running a company into the ground, trying to do a dispensary chain and diluting the shit outta the company.
It sounds like Cronos will be sharing their space and genetics with MedMen. MedMen wont be able to bring their US genetics to Canada and will work with Cronos to replicate their best selling strains. Cronos has a vault of IP from when Peace stored independent grows that were later abandoned. Cronos will also share their knowledge of the Canadian regulatory market.
MedMen wants in on the Canadian market and to list on the CSE. Cronos needs dispensaries for the upcoming legalization and wants an easy entry into the US market if/when cannabis scheduling changes. If this JV can quickly put up a chain of high end dispensaries all over Canada with little to no hit to shareholder value and Cronos profits, sounds good to me.
Billion-Dollar Cannabis Brand MedMen Coming To Canada Via Cronos
https://news.lift.co/billion-dollar-cannabis-brand-medmen-coming-canada-via-cronos/
By Elianna Lev
March 19, 2018
MedMen already operates 10 stores in the U.S. and will open a flagship on Fifth Avenue in Manhattan this year
MedMen is moving north. Boasting stores in Nevada, New York and California, the prominent American cannabis retailer will be crossing the Canadian border as part of a joint venture with Cronos Group.
MedMen Canada will be a 50-50 partnership between the two companies that will bring branded products and stores to provinces with private-market retailing. They are also planning research and development activities, and MedMen Canada will have access to Crono’s 350,000-square-foot production facilities.
According to Fast Company, the California-based company has 700 employees who run more than 10 stores, with a flagship planned for Manhattan’s Fifth Avenue later this year. The magazine describes the aesthetic of the open-concept outlets as that of “an Apple store, albeit with an unmistakable aroma,” and wonders if the chain could become “the Starbucks of weed.”
“MedMen retail stores have been integral to mainstreaming cannabis and we’re excited to continue that in Canada,” Cronos CEO Mike Gorenstein tells Lift News, adding that the partnership will help Cronos “continue executing our mission of changing the perception of cannabis.”
The stores will carry a diverse selection of produce, not limited to licensed producers owned by Cronos, such as Peace Naturals and OGBC. Cronos Group, which is based in Stayner, Ont., also has ventures in Germany, Israel, and Australia.
Stephen Easton, economics professor at Simon Fraser University in B.C., says this likely won’t be the last cross-border collaboration.
“This is just a harbinger of things to come. Like any business, there will be a period of rapid growth, some consolidation, then a bunch of mergers and people trying to find the right organizational structure to make it work,” Easton says.
“It’s the wild west, and it can’t get any wilder or further west.”
This isn’t the first connection MedMen has to Canada. It recently sold a $25-million minority stake to Canadian investment firm Captor Capital that gave the company, according to Business Insider, making it “the first U.S. cannabis startup to achieve elusive ‘unicorn’ status” with a $1 billion valuation.
Kalytera Initiates Program to Develop a Novel Cannabinoid-Based Compound for Treatment of Acute and Chronic Pain
https://kalytera.co/news/cannabinoid-based-compound-for-acute-and-chronic-pain-program-initiation/
Kalytera Therapeutics, Inc. (TSX VENTURE: KALY and OTCQB: KALTF) (the “Company” or “Kalytera”) today announced that it is has begun development of a novel cannabinoid-based compound for the treatment of acute and chronic pain. Patents for this compound have been filed in the U.S. and other jurisdictions, and Kalytera has obtained an exclusive, worldwide license for this compound from Beetlebung Pharma, Ltd., an Israeli-based pharmaceutical discovery company focused on cannabinoid-based therapeutics for the treatment of human disease (“BPL”).
Use of cannabinoids in the treatment of pain is supported by data from many studies. According to results of a systemic review of randomized controlled trials published in the Journal of Neuroimmune Pharmacology, cannabinoids have demonstrated significant analgesic effects and were well tolerated.
Kalytera’s compound consists of a cannabinoid conjugated with naproxen, a generic, non-steroidal, anti-inflammatory drug that is already approved for treatment of pain. This cannabinoid/naproxen conjugate has potential to become a next generation pain medication, and, based on the potentially complementary methods of action of the cannabinoid and naproxen, there is reason to believe these molecules may have a synergistic effect in treatment of pain, as well as a superior safety profile compared with opioid analgesics.
“We are pleased and excited to announce this new program in treatment of pain,” said Robert Farrell, President and CEO of Kalytera. “The promise of this novel compound is that the two active agents, the cannabinoid and naproxen, may provide effective pain reduction, without the risks of addiction or respiratory suppression that exist with opioid analgesics. We have also found a way to make this compound water soluble, which will allow for treatment of acute pain in in-patient settings, such as childbirth, short surgical procedures, and post-operative pain care.”
The objective of Kalytera’s new program is to develop a potent, non-psychotropic, oral analgesic for intractable pain that will be safe and well tolerated. The cannabinoid component will act as a cannabinoid receptor agonist, targeting the alpha3 glycine pain receptor in the spinal cord, and the naproxen component will block the synthesis of the pain-inducing molecule PGE2. Although the initial route of administration will be oral, Kalytera will also seek to develop an intravenous formulation.
The commercial opportunity for Kalytera’s cannabinoid/naproxen conjugate is large. According to a 2016 report by Transparency Market Research, the global pain management therapeutics market is projected to reach $83 billion by 2024. Current treatments for pain mainly include non-steroidal anti-inflammatory drugs (“NSAIDs”), such as naproxen, for mild to moderate pain, and opioids, such as morphine, for moderate to severe and chronic pain. Kalytera believes that its product will be suitable for mild to severe pain, without the risks of respiratory suppression and dependence associated with opioid analgesics.
“The potential synergy between this unique cannabinoid and naproxen in the treatment of pain holds great promise,” said Queensland Brain Institute Professor Joseph Lynch, Ph.D., a world authority on the biology of pain. “The cannabinoid analog that Kalytera is developing is designed to block pain by a dual action. First, their cannabinoid triggers the activation of a specialized protein in the spinal cord known as the alpha3 glycine receptor. To date, no company has introduced into the market an agent specifically targeting this receptor. When activated, the alpha3 glycine receptor potently blocks pain signals from being sent to the brain. Second, Kalytera has engineered its compound to ensure the alpha3 glycine receptor is activated by a second mechanism. This is achieved by attaching naproxen to the cannabinoid in a manner that allows it to detach in the spinal cord and block the synthesis of the pain-inducing prostaglandin molecule PGE2. The combination of naproxen with the cannabinoid is crucial because PGE2 is known to shut down the alpha3 glycine receptor pathway. By combining both molecules into a single drug, Kalytera has designed a next generation pain medication that should maximize the activation of the alpha3 glycine receptor pathway for treatment of intractable pain.”
The program for treatment of pain that the Company has announced today is a first step in the expansion and diversification of its cannabinoid-based product development portfolio.
“The initiation of this program is an important first step in our overall strategy to expand and diversify,” stated Ron Erickson, Kalytera’s Chairman. “We have a late-stage clinical program with cannabidiol (“CBD”) in the prevention and treatment of graft versus host disease, and today we have added a program in the treatment of pain. The pain market is demanding safer and effective treatments, and we believe our novel cannabinoid/naproxen conjugate may meet that need. In addition, we are evaluating a number of other unique and novel cannabinoid conjugates with potential to address unmet medical needs in other markets.”
Cronos Group finishes the day up 11 percent after announcing MedMen partnership
https://www.cnbc.com/2018/03/19/cronos-group-finishes-the-day-up-11-percent-after-announcing-medmen-partnership.html?__source=twitter%7Cmain
Toronto-based Cronos Group announced a cross-border partnership with California-based cannabis retailer MedMen on Monday, sending shares skyrocketing.
MedMen Canada, as the joint venture will be known, will develop branded products and open stores across Canada, leveraging Cronos' Canadian reach and MedMen's branding.
Chloe Aiello | @chlobo_ilo
Published 7 Hours Ago Updated 6 Hours Ago
CNBC.com
Canadian marijuana producer Cronos Group announced a cross-border partnership with California-based cannabis retailer MedMen on Monday, sending shares skyrocketing.
Cronos Group Shares closed up more than 11 percent on-the-day.
"We want to change the perception of cannabis worldwide, and bring it to the mainstream," Cronos Group CEO Mike Gorenstein said.
"It was really clear MedMen offered, by far, the best retail experience. We wanted to make sure we could bring that to Canada," he added.
MedMen Canada, as the joint venture will be called, is a new jointly managed company that will develop new, branded products and open stores across Canada.
The venture will leverage Cronos Group's Canadian expertise and product and MedMen's scalable branding, technology and retail experience.
"MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide," MedMen CEO and Co-founder Adam Bierman said in a statement.
"I think this is a milestone for the industry. You have an American and Canadian company with track records and resources to execute this venture — a meeting of giants," said MedMen spokesperson Daniel Yi.
"This speaks to the larger movement in mainstreaming marijuana and it shows that it is global movement," he added.
Furthermore, Gorenstein looks at the partnership with MedMen as one that could potentially prepare Cronos Group for a future in the U.S. market.
"This is the beginning – we look at this as a long term relationship," Gorenstein said.
MedMen, one of the largest cannabis retailers in California, has facilities in California, Nevada and New York. MedMen in January announced plans to list on the Canadian Securities Exchange as soon as April 15.
Cronos Group owns medical marijuana growing and distribution operations that serve Australian, Canadian, German and Israeli markets. In February, Cronos Group became the first "pure play" cannabis company to list on a major U.S. exchange.
Cronos Group shares are up 13.2 percent year-to-date and more than 300 percent in the past 12 months.
Chloe Aiello
News Associate for CNBC.com
I'd say running dispensaries is the one thing Cronos doesn't know how to do since they haven't done that part of the business at all. Medical cannabis is distributed thru the mail in Canada so this would be a new paradigm for them. I'm sure Cronos could hire the right people and start their own dispensaries but they're probably figuring a joint venture with Med Men is a quicker way to leverage a chain. Med Men is private and wanted to expand into Canada and list. We just need to hear more info.
Honestly, from dealing with that shit show Terratech for years, this already sounds waay better than what they're doing to get their dispensaries up and running.
Why Cannabis Producer Cronos Jumped 11.9% on Monday
https://finance.yahoo.com/news/why-cannabis-producer-cronos-jumped-214900666.html
What happened
Shares of Cronos Group (NASDAQ: CRON) closed up almost 12% on Monday after the Canada-based company announced a deal with privately held U.S.-based MedMen Enterprises to launch its MedMen stores in Canada.
So what
Cronos and MedMen are setting up a 50-50 joint venture called MedMen Canada. Because financial details of the deal weren't disclosed, it's hard to know exactly how much Cronos will benefit from the deal.
It appears that Cronos struck the deal to help it launch retail stores quickly to make use of its 350,000 plus square feet of production facilities as Canada's federal government moves to legalize adult use of marijuana later this year.
MedMen is the largest cannabis retail chain in California and the company also has stores in Nevada and New York, although it's hard to know whether there's high cross-border name recognition in the budding retail marijuana business. Nevertheless, MedMen's experience with setting up retail stores should prove useful even if the brand itself doesn't bring people in the door.
The joint venture also plans to develop branded products and conduct research and development activities.
Now what
Without any financial details -- or even details like how many stores the pair plans to open -- it's hard to value the deal, but given the wide-open marijuana market in Canada, where speed is likely to be important, having an experienced partner could be very beneficial to Cronos' ability to take early market share.
Brian Orelli and The Motley Fool have no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
We still need to hear more on the details for 'MedMen Canada' but Cronos has got to be looking years down the road with this, as MedMen being their future "in" to the US market if/when cannabis scheduling changes. The MedMen relationship could be an automatic overnight position in the US market.
But my guess with 'MedMen Canada' is it'll be similiar to back in the Pharmacan days - they provided investment capital and guidance for ABcann, Hydropothcary, Evergreen, Whistler, ITZ and Peace. Cronos can't invest directly in MedMen so this is probably the next best thing. Just my guess with no info yet.
Good buy. I want 2k more shares and never pulled the trigger Friday. Was hoping for another down day today, had the money ready smh. Didn't get a chance to buy pre-market. Still need to hear more details on this 50/50 venture.
CANNABIS GIANTS JOIN FORCES IN CROSS BORDER VENTURE
http://thecronosgroup.com/press-release/cannabis-giants-join-forces-in-cross-border-venture/
TORONTO, March 19, 2018 /CNW/ – Cronos Group Inc. (Nasdaq: CRON) (TSX-V: CRON) (“Cronos” or the “Company”) – With Canada on track to legalize adult use of cannabis, two of the world’s largest cannabis companies announced a first-of-its-kind cross border joint venture today that could bring America’s most recognized cannabis brand to Canadian consumers by year’s end.
MM Enterprises USA, LLC (“MedMen Enterprises”), a leading U.S. cannabis company with facilities in California, Nevada, and New York, entered into an agreement with Cronos Group, a Canadian licensed producer and distributor of medical cannabis. Cronos, which also has a footprint in Germany, Israel, and Australia, recently became the first pure-play cannabis company traded on a major U.S. stock exchange, the Nasdaq.
The joint venture, called MedMen Canada Inc. (“MedMen Canada”), will develop branded products and open stores across Canada, leveraging Cronos’ Canadian reach and expertise, as well as MedMen’s class-defining retail expertise. MedMen is the largest cannabis retail chain in California, which welcomed adult use sales this year. The company owns and operates factories and stores in three states and anticipates going public in Canada in the second quarter of this year. Cronos operates two wholly-owned Canadian Licensed Producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. and Original BC Ltd.
“MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide,” said MedMen CEO and Co-founder Adam Bierman. “We always take a very disciplined and focused approach to our growth, and it was important that we find the right partner for our expansion into Canada. Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They have the right infrastructure and expertise to successfully execute this venture.”
Canada legalized medical cannabis in 2013 and is home to some of the largest cannabis companies in the world. The federal government has announced plans to legalize adult use later this year, which would make Canada the first G7 country to federally legalize adult use.
“Cronos is focused on changing the perception of cannabis on an international scale, and we prioritize working with best-in-class partners who share our vision for the future. MedMen stores have been integral to mainstreaming cannabis, and they have become one of the most well-known and respected cannabis platforms in the U.S. We’re very excited to bring the MedMen experience to Canada,” said Cronos CEO Mike Gorenstein.
The joint venture will be a 50/50 partnership between the two companies. MedMen Canada will be focused on a branded national retail chain, branded products, and research and development activities. MedMen Canada will have access to Cronos’ 350,000 plus square feet of production facilities and future expansions while leveraging MedMen’s retail brand recognition. MedMen Canada will only operate in federally legal jurisdictions and in compliance with all applicable regulations.
About MedMen
MedMen Enterprises is the United States’ preeminent cannabis company with multiple assets and operations in California, Nevada and New York. Combined, these key strategic states account for nearly half of North America’s addressable legal market. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing and retail, and is the most recognized cannabis brand in the world today. Based in Los Angeles, MedMen employs nearly 700 workers in 18 facilities across the U.S. For more information, visit http://www.medmen.com
About Cronos Group
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: Peace Naturals Project Inc. (Ontario), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. (British Columbia), which is based in the Okanagan Valley. The Company has multiple international production and distribution platforms including Germany, Israel and Australia. The Company is rapidly expanding its global footprint as it focuses on building an international iconic brand portfolio and developing disruptive intellectual property. Cronos Group is committed to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience. For more information, visit www.thecronosgroup.com
You're kidding, right? All Gorenstein has to do is announce their next Aussie license(export or manufacture) and this will rise. Or announce another country they've expanded into. These guys don't pump this stock with fluff news, that's why they're on the Nas now. They just work in quiet and hit goals.
I think he meant, that if you're going to short something, then short those stocks affected by the tariffs. Don't short cannabis stocks or $CRON.
Yeah the Nasdaq crowd is out for blood! I'm not really mad, I'm looking for a cheap entry today to average up. I've been liquidating my other holdings waiting for a day like this.