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.
Recent CRON News
- U.S. Index Futures Dip, Bank of England Holds Interest Rates at 5.25% • IH Market News • 05/09/2024 11:47:20 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 11:32:35 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 11:31:22 AM
- Cronos Group Reports 2024 First Quarter Results • GlobeNewswire Inc. • 05/09/2024 11:30:00 AM
- Cronos Enters United Kingdom Cannabis Market • GlobeNewswire Inc. • 05/07/2024 11:00:00 AM
- Cronos Group Inc. to Hold Virtual 2024 Annual Meeting of Shareholders • GlobeNewswire Inc. • 04/26/2024 08:45:00 PM
- Cronos Group Inc. to Hold 2024 First Quarter Earnings Conference Call on May 9, 2024 • GlobeNewswire Inc. • 04/25/2024 08:15:00 PM
- Marijuana Stocks Up After Banking Reform Progress • IH Market News • 04/09/2024 10:05:42 AM
- Cronos Launches Lord Jones® Chocolate Fusions • GlobeNewswire Inc. • 03/25/2024 11:00:00 AM
- Cronos Group Inc. to Speak at the 36th Annual Roth Conference • GlobeNewswire Inc. • 03/12/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:24:53 PM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 03/05/2024 10:21:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:17:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:15:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:13:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:09:49 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/29/2024 09:16:09 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 01:06:27 PM
- Cronos Group Reports 2023 Fourth Quarter and Full-Year Results¹ • GlobeNewswire Inc. • 02/29/2024 01:05:00 PM
- U.S. Futures Dip as PCE Data Looms; Modest Gains for WTI and Brent Crude in April Contracts • IH Market News • 02/29/2024 11:13:07 AM
- Cronos Group Inc. to Hold 2023 Fourth Quarter and Full-Year Earnings Conference Call on February 29, 2024 • GlobeNewswire Inc. • 02/14/2024 09:15:00 PM
- Cronos’ Spinach® Brand Ends 2023 as the Number One Flower Brand in Canada1 • GlobeNewswire Inc. • 01/25/2024 12:00:00 PM
- Cronos Enters Australian Cannabis Market • GlobeNewswire Inc. • 01/09/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 10:04:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 10:03:02 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM