Founded in 2012, The Cronos Group. represents a vertically integrated marijuana group. It makes most of its money in the medical marijuana sector in Canada, and to a lesser extent, abroad (mostly in Germany, in Australia, and in the U.S.).
The company is working on improving its technologies to have a competitive advantage and increase market share through innovation and strong partnerships.
To gain this long-term edge in the marijuana space, the company is working on more effective methods of production and extraction processes that will allow weed producers to avoid losing terpene – the active component that improves the aroma of the cannabis – compared to conventional methods.
The Cronos Group is also working on improving and diversifying its cannabis oil offerings – its cannabis oil sales are exceptionally higher than its dried cannabis sales. The dried cannabis business is a low-margin business compared to the cannabis oils and only conducts business because of its large supply.
- The company has many core assets, and its portfolio helps the firm grow across 4 continents: PeaceNaturals and Original BC (OGBC) owned at 100%, as well as Whistler Medical Marijuana Company (WMMC) owned at 21,5%.
- PeaceNaturals and Original BC (OGBC) are producers that are regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations.
- In December 2018, Altria Group declared that it would buy a 45% stake in The Cronos Group for about $1.8 billion. The tobacco player wants to take advantage of the marijuana booming market, while cigarettes sales have been declining. The Cronos Group. is an interesting target for Altria, as the weed company is working on upscaling its production capacity in Canada and overseas, while improving its innovative extraction and production technology.
- In September 2018, The Cronos Group. announced its partnership with Ginkgo Bioworks to create lab-grown cannabis. Creating different cannabinoid molecules through cultured cannabinoids could allow the companies to produce high-purity cannabinoids and transform an agricultural business into a technological and innovative one.
- In late 2018, the marijuana producer firm announced that together with Technion Research and Development Foundation, they will sponsor the Technion – the Israel Institute of Technology – to work on marijuana-based skin care treatments that will mostly help acne, psoriasis and skin repair.
Investing in vertically integrated marijuana companies like The Cronos Group. requires the best and most advanced trading tools in the industry to make the most of it. Marijuana stocks offer great trading opportunities, but they are quite volatile, so always apply strong money management rules to protect your trading capital.