Cronos Group Inc (OTCMKTS:PRMCF) is resurging after some volatility that has hampered it over the last month. PRMCF took a sizeable bump up today after announcing operations in Australia and other parts of South Asia. The company will work in a joint capacity with New Southern Capital to deliver CBD oils and premium medical cannabis products to the region. Cronos Australia, as PRMCF is calling it, is launching with two licenses: a cultivation license and a research license.
“The launch of Cronos Australia as our newest international hub marks an important milestone for the Company. Cronos is focused on providing pharmaceutical grade medicine to patients in need, and we are excited that our Australian team shares this vision and commitment,” says Mike Gorenstein, CEO of PRMCF.
Cronos Group Inc (OTCMKTS:PRMCF) trumpets itself as a principal investment firm operating in the Canadian cannabis space.
The firm seeks to invest in companies either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marihuana for Medical Purposes Regulations. The firm typically invests in companies based in Canada.
The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control. Cronos Group was incorporated in January, 2013 and is based in Toronto, Canada.
According to company materials, “Cronos Group is a geographically diversified and vertically integrated cannabis company that operates two wholly-owned Licensed Producers (“LPs”) regulated within Health Canada’s Access to Cannabis for Medical Purposes Regulations (the “ACMPR”) and holds a portfolio of minority investments in other Licensed Producers. The Company’s flagship LPs, Peace Naturals Project Inc. (Ontario) and Original BC Ltd. (British Columbia), are collectively situated on over 125 acres of agricultural, licensed land. Cronos Group is focused on building an international iconic brand portfolio, providing patients with personalized care and creating value for our shareholders.”
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As part of this launch PRMCF, announced the acting CEO and COO of the Australian segment who will have full access to the company’s intellectual property and brand names to pave the way ahead.
Furthermore, according to the press release, Cronos Australia’s first production campus will be located on 120 acres and will commence construction on the initial phase of its production platform with a 20,000 sq. ft. purpose-built facility, with an expected annual production capacity of 2,000KG. Cronos Australia is currently working on designing a significant capacity expansion beyond the Initial Facility. In the interim, PRMCF and partners intends to make available supply of Peace Naturals’ premium medicinal cannabis to support Australian patient access, subject to obtaining its import license.
Previously, PRMCF put Peace Naturals on shelves in Germany and this move further underscores the company’s position to seek business opportunities abroad.
Holding a capital value in the market of $828.84M, PRMCF has a float of 112.24M and a shored up balance sheet. The move to Australia is toward a growing marketplace and one that is rife with opportunities as minds change Down Under about legalizing cannabis. We will update readers as more information comes out on this deal. Sign-up for continuing coverage on shares of $PRMCF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PRMCF, either long or short, and we have not been compensated for this article.