Cronos Stock Appears Set to Climb
In general, pot stocks have come down from their highs earlier this year. Unsurprisingly, financial news outlets don’t talk about these tickers as much as before.
But that’s exactly why this could be a good time to pay attention to the sector again. While there’s way less hype surrounding pot stocks than before, many companies are still churning out serious growth.
Take a look at Cronos Group Inc (NASDAQ:CRON), for instance.
Cronos is a vertically integrated cannabis company headquartered in Toronto, Ontario, Canada. Starting in 2012, the company has been building a global network with partnerships, production, and distribution across five continents.
With a market capitalization of around $2.4 billion, Cronos isn’t the biggest pot stock. But it is a name to be reckoned with in the industry. The company’s products are distributed across all provinces in Canada.
Notably, its wholly owned Canadian licensed producer Peace Naturals Project was granted the first non-incumbent medical cannabis license by Health Canada in 2013. Cronos Fermentation, another subsidiary wholly owned by Cronos, received a processing license from Health Canada in April 2021. (Source: “Investor Presentation,” Cronos Group Inc, May 7, 2021.)
As just mentioned, Cronos has been building a global network. In the U.S., the company manufactures, markets, and distributes hemp-derived supplements and cosmetic products through its subsidiary Redwood Holding Group, LLC.
Meanwhile, Cronos Group Inc has joint ventures in Israel and Columbia, as well as distribution agreements in Europe and Australia.
In March 2019, one thing that made headlines in the pot sector was Altria Group Inc’s (NYSE:MO) $1.8-billion strategic investment in Cronos. The transaction gave Altria—one of the largest producers and marketers of tobacco products in the world—a 45% stake in Cronos.
Considering how successful Altria has been in brand and product development in highly regulated markets—and its financial capacity and wherewithal—the deal was great news for CRON stock investors.
Moreover, while many pot stocks—including some prominent ones—are still trading over the counter in the U.S., Cronos Group Inc is listed on the Nasdaq. Having one’s shares listed on a major U.S. stock exchange can lead to more exposure, higher liquidity, and a larger investor base.
In its home country, Canada, Cronos stock is listed on the Toronto Stock Exchange. The company’s ticker symbol is “CRON” on both exchanges.
Cronos Group Inc (NASDAQ:CRON) Stock Chart
Chart courtesy of StockCharts.com
Looking at the above chart, we see that CRON stock has come back to Earth after shooting to the moon earlier this year. Today, Cronos stock trades around the same level it did before the take-off last November.
But Cronos Group Inc’s business has grown over the past year.
According to the company’s latest earnings report, it generated $15.6 million of net revenue in the second quarter of 2021. That represents a 58% increase year-over-year. (Source: “Cronos Group Reports 2021 Second Quarter Results,” Cronos Group Inc, August 6, 2021.)
In particular, the company’s U.S. revenue rose by two percent from a year earlier, while its Rest of World revenue surged by 74%.
Obviously, Cronos’ U.S. revenue growth doesn’t seem that impressive compared to what it earned elsewhere. But the company has more tricks up its sleeves.
On June 14, Cronos announced a strategic investment in PharmaCann Inc., a leading vertically integrated U.S. pot company. (Source: “Cronos Group Announces Strategic Investment in PharmaCann, a Leading U.S. Cannabis Company,” Cronos Group Inc, June 14, 2021.)
PharmaCann has a broad footprint in the U.S. market. It has six production facilities and 24 operating dispensaries across New York, Illinois, Ohio, Maryland, Pennsylvania, and Massachusetts.
A wholly owned subsidiary of Cronos Group Inc purchased an option to acquire roughly a 10.5% ownership stake in PharmaCann for approximately $110.4 million. Following the exercise of the option, Cronos and PharmaCann will enter commercial agreements that would allow each company to offer its products through either company’s distribution channels.
“We were attracted to PharmaCann as an investment because of their disciplined capital allocation, strong track-record and compelling licensed manufacturing and retail footprint,” said Cronos’ president and chief executive officer, Kurt Schmidt. (Source: Ibid.)
Pot stocks may seem out of favor at the moment, but given the growth in Cronos Group Inc’s business and what it plans to do, CRON stock—which trades at just $6.41 apiece—could be a good opportunity.
例如，看看Cronos Group Inc.（纳斯达克代码：Cron）。
值得注意的是，其全资拥有的加拿大特许生产商和平自然项目于2013年获得加拿大卫生部授予的第一个非现任医用大麻许可证。克罗诺斯全资拥有的另一家子公司克罗诺斯发酵于2021年4月收到加拿大卫生部的加工许可证。（来源:《投资者陈述》，Cronos Group Inc，2021年5月7日。）
与此同时，Cronos Group Inc.在以色列和哥伦比亚有合资企业，在欧洲和澳大利亚也有分销协议。
此外，尽管许多大麻股票--包括一些著名的股票--仍在美国柜台交易，但Cronos Group Inc.在纳斯达克上市。在美国主要证券交易所上市的股票可以导致更多的风险敞口、更高的流动性和更大的投资者基础。
Cronos Group Inc.（Nasdaq：Cron）股票走势图
但Cronos Group Inc.的业务在过去一年有所增长。
该公司最新财报显示，其在2021年第二季度创造了1560万美元的净营收。这意味着同比增长58%。（来源:《Cronos Group报告2021年第二季度业绩》，Cronos Group Inc，2021年8月6日。）
6月14日，Cronos宣布对美国领先的垂直整合大麻公司PharmaCann Inc.进行战略投资。（来源：“Cronos Group宣布对美国领先的大麻公司PharmaCann进行战略投资”，Cronos Group Inc，2021年6月14日。）
Cronos Group Inc.的全资子公司购买了一项期权，以约1.104亿美元的价格收购PharmaCann约10.5%的所有权。行使选择权后，Cronos和PharmaCann将签署商业协议，允许两家公司通过任何一家公司的分销渠道提供其产品。
目前，Pot股票似乎不受欢迎，但考虑到Cronos Group Inc.业务的增长及其计划，CRON股价仅为6.41美元，可能是一个很好的机会。