When it comes to international opportunities, Canadian companies in the cannabis space have been proactive in attempts to create deals and partnerships with foreign companies. Few, however, have been able to fully set up shop–until now. On Monday (February 5) Cronos Group (TSXV:MJN) announced the official launch of its Australian endeavor, Cronos Australia.
Cronos Australia is a joint venture, split evenly between Cronos Group and NewSouthern Capital that will become Cronos’ hub for its planned market entrance in New Zealand and Southeast Asia.
As part of this enterprise, a new 20,000 square feet production facility will be constructed to support an annual production capacity of 2,000 kilograms. However, during an investor’s call on Monday, Cronos Group CEO Mike Gorenstein said that will be expanded in the future.
Infancy market with potential increase in patient population
Gornstein said the Australian cannabis market is still in its infancy and it resembles the Canadian one from a few years ago.
As it currently stands, Cronos plans to offer their Peace Naturals’ medicinal cannabis products–if it obtains a critical import license– to the existing patient population. As explained by Rodney Cocks, CEO, and director of the new Australian venture, this currently consists of two different groups but is hoping to expand that number.
Despite plans for increasing the patient population for medical cannabis, Cocks said currently only pediatric epilepsy and palliative care patients have access to the drug. These two groups, according to data from Deloitte in 2016, represent a little over 30,000 patients.
Cocks said he believes that number is larger now, but wouldn’t disclose how many they are in the company’s estimation. He said they will be updating those numbers in the coming months.
“I think what we’ve seen in the market is an increased rate of voices and momentum around medicinal cannabis access for patients beyond those two patient groups,” Cocks said during the investor call.
While he said the Australian market parallels that of Canada’s, Cocks explained the current Australian market has the advantage that it can mimic it faster to where it is now. “The pace of change will certainly increase,” Cocks described when comparing the two markets.
During the question period of the investor call, Matt Bottomley cannabis analyst with Canaccord Genuity asked what licenses the Australian arm of Cronos still needed. Cronos Australia holds a medicinal cannabis license and a cannabis research license.
The company is awaiting a confirmation for a manufacturing license in the next few weeks. Later asked if there could be any delays in getting a critical import license, the company said it expected no problems obtaining it.
As part of its January cannabis market update, a report issued by Canaccord indicated Cronos held a 6.9 percent share on its own cannabis index. The Canaccord Genuity Cannabis Index is comprised of 12 cannabis companies including Canopy Growth (TSX:WEED) and Aurora Cannabis (TSX:ACB) as the two largest holders with 28.6 and 26.3 percent weight respectively.
After its most recent quarterly update in November, Beacon Securities analyst Vahan Ajamian said the company’s development and production capabilities had “planted the seeds” for them to become a “true global player.”
Despite seeing an initial dip in the early trading hours, Cronos quickly increased its volume of trading. On Monday shares of Cronos closed at $7.36 per share, a 7.45 percent rise to start its trading week.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .
Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.
For more information regarding the Company or the offering, please contact firstname.lastname@example.org, or