CRON stock is taking a hit this morning after Cronos Group (TSX:CRON) (NASDAQ:CRON) announced the delayed release of its fourth-quarter results, which were previously scheduled for Thursday.
Increased Uncertainty
The company revealed that it has had to delay the completion of its financial statements so that it could release its earnings for Q4 2019 and for the full year 2019. That being said, the company did not provide any further explanations with regards to the delay. Cronos Group was originally supposed to release its financial results on Thursday this week. The company did not provide a rescheduled date.
In a statement released today, Cronos explained, “[Cronos] will make a further announcement in a subsequent press release to schedule the date and time of the earnings conference call.”
>> TGOD Stock Continues to Hit New Low: Should You Panic?
CRON stock is down by 8% at $6.57.
These are quite tricky times for the company, considering the fact that David Hsu stepped down from his position as the Chief Operation Officer rather recently. Cronos Group is yet to name a successor for that position. Hsu was in charge of the company’s operations on the product side, so his departure may have left the company in a bit of a lurch.
However, it will probably be better to wait for the financial results before assuming anything. While the latest development might give potential investors pause, there are some analysts who believe that that CRON stock could well be the cannabis stock to own in 2020.
The biggest reason for that is the fact that cannabis companies without a big-ticket partnership are going to find it difficult to grow this year. However, tobacco giant Altria's (NYSE:MO) 45% stake in Cronos Group could well prove to be a major edge for the company. Altria invested $1.8 billion in the company, which could help to turn Cronos into one of the main players in the market this year.
CRON stock has tumbled almost 70% over the past year.
Featured image: Canva
