A few days ago, Benzinga had the chance to chat with Cronos Group Inc (CVE: MJN) (OTC: PRMCF)’s president and CEO Michael Gorenstein and its head of marketing and communications Eric Klein. The execs went into their business, the challenges of exporting cannabis, recent corporate news and more.
Time To Meet Cronos
The Cronos Group is a fully and vertically integrated Canadian cannabis producer and distributor. It is also one of the largest ones, outranked only by a handful of companies like CANOPY GROWTH CORP COM NPV (OTC: TWMJF), APHRIA INC COM NPV (OTC: APHQF) and AURORA CANNABIS IN COM NPV (OTC: ACBFF).
According to Gorenstein, this is the only Canadian producer with facilities and operations in multiple provinces. Their product lines include:
Peace Naturals, a medicinally focused LP in Ontario. “It is actually the first non-incumbent license to be granted under the federally legal program,” Gorenstein said.
In The Zone Produce, a British Columbia LP focused on the recreational market.
Other ventures include:
A partnership with Pedanios to export cannabis to Germany.
Indigenous Roots, a joint venture to create a brand with Canadian First Nations. “The group is led by Phil Fontaine, the former National Chief of Assembly of First Nations,” Klein added. “We’re really focused on producing products for indigenous people and communities that have been historically underserved from a medicinal standpoint,” he said. “We’re really focused on taking social entrepreneurship to the next level. It’s about job creation and infrastructure building, and also wealth creation for a group that’s traditionally been underserved,” Gorenstein went on.
A 21 percent stake in Whistler Medical, “the only currently licensed organic producer that sells 100 percent end products,” according to Gorenstein.
The $17 Million Bought Deal
Last week, Cronos announced a bought deal public offering of approximately $17.3 million.
A bought deal “is in fact a true underwriting where an investment bank actually takes the entire transaction for itself and then goes out and re-sells it to its clients,” Viridian Capital Advisors’ Scott Greiper explained. “That’s not typical in any industry, and it shows the bullishness of Canadian investors in cannabis,” he noted in relati