Over the past months, even some of the biggest companies in the cannabis industry have not been left untouched by the slowdown in the sector. Cronos Group (TSX:CRON) (NASDAQ:CRON) is one of the biggest companies in the industry, and while it did suffer due to the slowdown, CRON stock tanked by 10% this past Friday for a totally different reason.
Resignation of Two Key Executives
Last week, it emerged that its Chief Risk Officer and Chief Commercial Officer, both resigned from Cronos Group, effective December 31. The company did not state anything about their replacements either, and it seems to have given rise to a certain degree of uncertainty in the markets.
Cronos stock continued to slide on Monday morning, and so far, it has lost 3.50% in early trading.
That being said, it is probably a temporary setback for the company and nothing particularly serious. Investors should keep in mind that Cronos has managed to get a major partner in the form of tobacco giant Altria (NYSE:MO), and that could well be the strongest argument in favor of Cronos stock.
At the time of writing, CRON stock is down 3.50% at $7.33.
Altria Group picked up a 45% stake in Cronos Group for C$2.40 billion, which has given Cronos the necessary financial muscle to expand its business rapidly. Additionally, Altria’s expertise with regards to regulation, marketing, and commercialization is also going to be a big plus. The availability of such a cash pile also allowed Cronos to acquire as many as four of Redwood Holding Group’s subsidiaries.
Cronos’ CEO also stated that the company is looking to grow through sound research and development, rather than investing heavily in new assets. Investors could put this stock in their watch lists for the time being and track the events connected to Cronos Group over the coming weeks.
CRON stock has fallen over 60% over the past week.
Featured image: Canva