Cronos Group Inc (NASDAQ: CRON) is having yet another incredibly strong start to the trading session this mornig. However, when you dig in, you won’t find any company specific news. Instead, what you’ll find is a stock that has been on the uptrend for a few sessions now. So, what’s the deal? Why is the stock up and will it continue? Today, we’ll talk about:
- Why CRON is gaining and why we believe the gains will continue;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why CRON Is Climbing
Cronos Group is a company that focuses in the emerging cannabis sector. The big reason for the gains in the value of the stock has to do with the company’s activities in Canada. Pretty soon, Canada’s recreational cannabis market will be launched. In fact, the move will take place in early October. Considering this CRON is preparing to take the market by storm, and investors are seeing opportunity every time they look at the stock.
Recently, CRON announced that it has entered into multiple supply agreements. These agreements surround the retail distribution of the company’s cannabis products through both government operated and private shops. So far, the company has secured listings and signed binding master supply agreements with Ontario Retail Cannabis Corporation, Nova Scotia Liquor Corporation, Prince Edward Island Liquor Corporation and BC Liquor Distribution Branch. Between the two, the service area represents about 50% of Canada’s population, which could cause Cronos products to become a leading brand in the Canadian recreational cannabis market.
Through these agreements, CRON will be providing a wide-range of cannabis products to these shops. These products include dried flower, pre-rolled joints and highly rated oils. In a recent statement, Mike Gorenstein, CEO at CRON, had the following to offer:
Cronos is excited to provide our premium quality products to Canadian consumers for the upcoming legalization and launch of the recreational market… Day one we are ready to build and establish our brand through our premium products and we are committed to building strong relationships with the provinces and our customers.
What We’re Seeing From The Stock
Recently, Cronos has been headed up as investor excitement surrounding the launch of the recreational cannabis industry in Canada continues. Today is no different than what we’ve seen from the stock as of late. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:21), CRON is trading at $9.06 per share after a gain of $0.52 per share or 6.09% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CRON. In particular, we’re interested in following the story surrounding the company’s penetration of the Canadian cannabis market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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