Cronos Group Inc (NASDAQ: CRON) is having a strong start to the trading session this morning, and for good reason. The comapny announced this morning that it has entered into a partnership surrounding a medical cannbis clinical study. Of course, the news excited investors and the stock is headed up as a result. Today, we’ll talk about:
- The new medical study;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for with regard to CRON ahead.
CRON Heads Up On Cannabis Study News
As mentioned above, Cronos is having a strong start to the trading session this morning after announcing its participation in a cannabis study. In a press release issued early this morning, the comapny announced the commencement of a joint medical cannabis study. The study will assess medical cannabis as a treatment for insomnia and daytime sleepiness.
In the release, CRON said that the study is partly funded by Peace Naturals Project Inc.. Peace Naturals is a licensed producer of medical cannabis that is wholly owned by CRON. The company also said that the study will be led by physicians practicing within the Canabo Medical Clinic network, a network owned by Aleafia, the partner in this joint study.
In a statement, Dr. Michael Verbora, CMO at Aleafia, had the following to offer:
Aleafia is excited to participate in a study with Cronos Group, a company with a firm commitment to patient health. For far too long, the answer to a patient’s sleeping disorder or chronic pain has been a prescription and a bottle of pills… There is mounting evidence of the risks of prescription sleeping aids including worsening mental health and increased risk of dementia. This study may in part point to medical cannabis as an alternative to harmful prescription drugs.
The above statement was followed up by Mike Gorenstein, CEO at CRON. Here’s what he had to offer:
The negative health impacts of sleep disorders and their proper treatment must be more widely acknowledged and understood… Cronos Group is pleased to find a partner in Aleafia that shares our commitment to addressing this overlooked public health issue.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to keep a close eye on the news. After all, the news leads to moves. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:19), CRON is trading at $13.23 per share after a gain of $0.54 per share or 4.26% 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 continued work not only in the medical cannabis space, but in the coming Canadian recreational cannabis market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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