Cronos Group Inc (NASDAQ: CRON) is having an overwhelmingly strong day in the market, leading the cannabis sector by volume. The gains are coming after a recent article published by Investor Place and syndicated on Yahoo! Finance created a buzz around the company’s newly-minted partnership with Ginkgo Bioworks.
The partnership was minted on September 4, 2018. In the partnership, CRON will produce cultured cannabinoid. This is the active ingredient that is produced by cannabis plants. Currently, cannabinoids make up less than 1% of the dried weight of the plant and cannot be produced commercially through traditional cultivation. With this partnership, the two companies plan on lowing the cost of production, creating commercial scale and giving the market access to these rare cannabinoids.
In the partnership, Ginkgo will develop 8 different target cannabinoids for production through the use of yeast and an industrial fermentation process. Through the process, the company plans on producing strong yields at costs that are below the industry average. From there, CRON will have the right to use and commercialize any intellectual property involved. The breakdown of the potential offered in the article linked to above led to tremendous volume that by 10:43 sent the stock up 10.93%.
In Other Cannabis News
In other cannabis news Tilray Inc (NASDAQ: TLRY) is the cannabis industry’s biggest gainer by percentage this morning after the company announced that the US DEA has granted the company the ability to import cannabis related materials for use in a clinical study at UC San Diego. The stock is currently trading 15.11% higher as investor excitement continues to send TLRY through the roof.
New Age Beverages Corp (NASDAQ: NBEV) enjoyed gains over 6% early on as the rumors surrounding Coca-Cola’s potential acquisition of the company continued to thicken. The rumors are cannabis related as it is believed that Coca-Cola’s interest stems from recent trademarks NBEV filed for surrounding CBD drinks. Coca-Cola is also said to be interested in Aurora Cannabis.
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