You go, Cronos Group! On Thursday, it was disclosed that Cronos Group and Cura entered into a supply agreement. On the news, the Cronos Group stock moved higher.
Why, though? What's so special about this particular supply agreement? After all, multiple cannabis companies are doing the same thing (i.e., Aurora Cannabis, which is supplying the province of Alberta with cannabis, and WeedMD, which entered a supply agreement with Shoppers Drug Mart).
Well, you'll find out!
Cronos Group and Cura: A New Found Friendship
Cura Select Canada is one of the world's largest cannabis companies, one that is working towards becoming the leading provider of all things cannabis (particularly oil and hemp oil) to both US markets and international markets.
Now, however, with the Cronos Group supply agreement, Cura will be moving into the Canadian market, supplying domestic as well as international channels.
Important Details:
The press release describes this as a "five-year take-or-pay" agreement to buy "a minimum of 20,000 kilograms" of marijuana.
Cronos Group and Cura Speak
Both companies appear to be as optimistic about the agreement as the market is. In a statement, CEO Mike Gorenstein said Cronos Group is "thrilled to be partnering" with Cura. He described the company as a leader in "extraction technology," as well as "value-added products."
Meanwhile, Cameron Forni, Cura CEO, said this partnership "marks a significant step" in its goals to become the "leading provider of cannabis oil."
The Cronos Group Stock (NASDAQ:CRON)
Speaking of the market, the CRON stock is still trading in the green—which doesn't surprise me.
According to Yahoo Finance, as of 1:08 p.m. EDT, Cronos Group is trading at $5.995, which puts the stock up 3.90%.
The Takeaway
What do you think about Cronos Group and Cura moving into a supply agreement? Will this help Cronos catch up to the level of playing that Aurora Cannabis and Canopy Growth are at?
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