NEW YORK, 28 Feb 2018:
Canadian medical marijuana producer Cronos Group yesterday became the first publicly traded company on a major US exchange which grows and processes cannabis.
The Toronto-based firm grows and produces medical marijuana – making it a “pure play” pot stock, setting it apart from some pharmaceutical companies that only have a small portion of their business devoted to cannabis.
Cronos founder and chief executive officer Mike Gorenstein said: “It’s very exciting. It’s a huge milestone for Cronos Group and for the cannabis industry. It’s just another step in showing that cannabis is mainstream and it’s a global industry that’s accelerating at a rapid pace.”
Cronos itself ships its products to Canada and Germany, and is working on partnerships in Israel and Australia.
In the US, 29 states legalised medical marijuana – but Gorenstein says it remains a tricky market.
“You’re so worried about what do you do with your cash. You’re not able to traditionally use banks.
“Are you concerned that your customers are potentially taking the product out of the state? Is the federal government going to knock on your door any day?
“So we have made the decision, and we are fully committed to only operating in federally legal markets.”
Cronos is listed under the ticker CRON and hopes the Nasdaq listing will help shed the sluggish image of the cannabis industry.
– Reuters