Cronos Group Inc. (NASDAQ:CRON) is a well-known Canadian-based cannabis company listed on the Nasdaq Exchange. Cronos Group is in the top 10 in terms of market capitalization in the cannabis industry, competing with the likes of Aphria and Canopy Growth Corporation.
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.”
Cronos Group has also been up-listed on the Canadian market from the Venture Exchange to the TSX. In addition to being newly listed on another large exchange, the Nasdaq, Gorenstein added that the company is “set on the listing front for years to come.”
Cronos Group has already revealed many distribution deals throughout the past year, and it was noted that the “strategic initiatives launched in 2017 are coming to fruition.”
Following up after a strong Q1, Cronos Group reported a 428% increase revenue year-over-year for Q2. In addition to overall revenue up, their sales in the CBD sector are also up 40% from the previous quarter.
The company also entered into a take-or-pay supply agreement with one of the largest cannabis companies in the industry, Cura Cannabis Solutions. The take-or-pay agreement is signed for five years at a minimum 20,000 kilograms a year from the day Cura Cannabis receives its licensing from Health Canada.
In terms of production and capacity, Cronos also entered a joint venture with a large greenhouse operator to form Cronos Growing Company Inc. The current plans anticipate an 850,000 sq. ft. greenhouse operation capable of producing 70,000 kilograms a year.
Cronos Group is yet again teeing up partnerships and distribution deals to up their capacity and continue to have an explosive second half of they 2018 year.