Biotech / Finance

Cronos Group Execs Discuss The Challenges Of Exporting Cannabis As An Insurance-Reimbursed Product

From Biotech
March 19, 2017 - 10:11pm
Cronos Group Inc (CVE: MJN) (OTC: PRMCF) is one of the largest licensed cannabis producers in Canada, only trailing a few industry behemoths like CANOPY GROWTH CORP COM NPV (OTC: TWMJF), APHRIA INC COM NPV (OTC: APHQF) and AURORA CANNABIS IN COM NPV (OTCL ACBFF). A few days ago, Benzinga had the chance to chat with the company’s president and CEO Michael Gorenstein, and its head of marketing and communications, Eric Klein. While there are many interesting aspects to this vertically integrated, geographically diversified business, we were particularly curious about one: exporting marijuana. Cronos not only produces and sells cannabis in multiple Canadian provinces, but it also ships products to Germany for distribution by partner Pedanios. “We are one of the two Canadian producers that are currently distributing product there,” Gorenstein revealed, adding that roughly 200 pharmacies in the European country currently sell their products. Javier Hasse: What are the challenges of being a cannabis exporter?  What are the difficulties that you face to trade with this substance, taking into account that the U.N. still regards it as a narcotic? Gorenstein: I think there are a few challenges. The first is really finding a solid and trustworthy partner; I think in the cannabis industry you’ve got a lot of different people that are entering. And, because of how young the industry is, there are a lot of aspiring entrepreneurs that maybe don’t have the most established business. So, when we are looking to find a trade partner in a country like Germany, where the [legal cannabis] program is just starting, being able to find someone that actually is experienced and is a good and trustworthy partner isn’t an easy thing. ...Full story available on Benzinga.com


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