In an official announcement made on Tuesday, August 21, 2018, Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) released some amazing details of their new supply agreements. These supply deals are with one company based in Ontario, and another based in British Columbia, which will effectively “encompass over 50% of the Canadian population.”
Cronos has had three consecutive “green” days, adding up to about 33% gains. The mentioned news has caused the rally to continue into today, reaching highs of $8.78.
Cronos Group has shown us in the past what type of capabilities they have in the very-young Canadian cannabis industry, developing large deals to secure their market share when the recreation bill goes into effect. This is a smart go-to strategy as Cronos is working with similar industries such as the alcohol industry which has been around far longer than cannabis but is very similar in operation.
The supply agreements previously made by Cronos Group are with already well established players in the manufacturing and supply side of the alcohol industry such as BC Liquor Distribution Branch and Nova Scotia Liquor Corporation.
In the announcement on Tuesday, Cronos Group also identified that they have “access to over 1.2 million square feet of domestic capacity that is both actively licensed and committed facilities with production and sales licenses expected in the near future.”
On an earnings call on August 14, 2018, during the pre-market, Cronos Group released some great updates on the company’s growth and progress. CEO Michael Gorenstein noted that the company is continuing “to sit in a comfortable cash position.” Additionally, last quarter Cronos was up listed on the Canadian TSX and showed revenue growth of 428% year-over-year.
Cronos Group was also one of the first Canadian-based Cannabis companies to be listed on a public exchange in the US. Due to the speculation behind the emerging industry, Cronos Group has seen explosive change in their price per share throughout the last year or so. From November 2017 to the end of December 2017, Cronos gained over 200% in price per share.