Cronos stock is up just over 5% Friday morning; the jump comes after the Toronto cannabis company previously announced it closed the Redwood Holding Group acquisition.
Here's what we know.
Cronos Stock Trades Up On Acquisition News
On Thursday, September 5, Cronos Group (TSX:CRON) (NASDAQ:CRON), which is a global cannabinoid company known for its innovation, announced that it's closed its acquisition of not one, but four Redwood Holding Group operating subsidiaries. As a result, Cronos Group now has a leading hemp-based products platform in hand, which includes hemp-derived CBD-infused skincare. Customers can purchase these items through retail channels and online.
That aside, the Redwood Holding acquisitions mean Cronos Group is executing its business model, which is to advance cannabis research and product development, elevating the consumer experience.
Everyone seems optimistic about the acquisitions, from the market to Cronos's management team.
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“This acquisition is one of a number of new growth opportunities that is differentiating our company and our strategic direction," said Cronos CEO Mike Gorenstein. "We are pleased to have completed this acquisition and look forward to working closely with Rob and Cindy to further build on their record of innovation and fully capitalize on the platform they have created.”
At the time of writing, Cronos stock is trading at $12.24, which puts it up 5.74% on the Nasdaq Exchange. Considering it's still relatively early in the trading day, it will be interesting to see where CRON stock closes, marking the end to the current trading week.
Takeaway
What do you think about the news? Do you think it will allow Cronos stock to compete with companies like Aurora Cannabis (TSX:ACB) (NYSE:ACB) and Canopy Growth (TSX:WEED) (NYSE:CGC), a company that has been suffering the past couple of months? Let us know your thoughts in the comments below, and don't forget to see where CRON stock opens on Monday.
Featured image: PixaBay
