With the marijuana stock market going up and down its good to know companies like the Cronos Group Inc (CRON Stock Report) are Committed to advancing cannabis research, technology, and product development. CRON is one the popular pot stocks to watch in the industry. The popularity of the this marijuana stock is much because of the strong balance sheet of the company that speaks for itself and the prospects it holds for its investors. This innovative global cannabinoid company has some major forces working behind it that could pave way for the expansion of the company making it as one of the largest marijuana stocks in the industry.
Growth Prospects For Cronos Group
The process of exploring international markets for marijuana has started. This is a result of the Canadian cannabis industry nearing saturation as the supply begins to cope up with the in-house Canadian demand. Though the Cronos Group is catching up to others with international sales in comparison to its opponents. The company is working rigorously on its expansion by extending its operations outside of Canada. With this in mind, the Company has opened a research facility in Israel with the objective of focusing on developing cannabis-related devices. Furthermore, the company has supply and distribution operations in Germany, Poland, and Australia making investors hopeful of its strong international presence. The company intends to reach more international boundaries in the year to come.
[Read More] 2 Cannabis Stocks To Watch To Closeout The Week
If we talk about the key drivers that enhance the value of any marijuana company, or marijuana stock it has to be acquisitions. Acquisitions have been the part and parcel of the marijuana business. Cronos has a massive war chest thanks to marijuana stock Altria’s (MO Stock Report) $1.8 billion investment, which gave the tobacco titan a 45% stake in the marijuana producer.
The company has utilized some of this capital to build its empire through acquisitions. Earlier this month, the company had completed the acquisition of four Redwood Holding Group’s subsidiaries for $300 million. The company reported its second-quarter earnings on August 8. During the quarter, the company’s revenue beat analysts’ expectations. This deal not only boosts the company’s global presence but also enables it to expand its product lineup in the U.S., where hemp-derived CBD is legal at the federal level thanks to the passage of the Farm Bill in 2018.