Cronos Group Inc (NASDAQ: CRON) is having an incredibly strong start to the trading session this morning, following up on the dramatic gains that we’ve seen in the stock as of late. Ultimately, the reason for the gains has to do with the fact that the company is taking the Canadian market by storm, and the market hasn’t even been born yet. Today, we’ll talk about:
- What’s going on in Canada;
- what we’re seeing from CRON as a result; and
- what we’ll be watching for with regard to the stock ahead.
CRON Takes The Canadian Market By Storm
While the Canadian recreational cannabis market doesn’t quite exist yet, it’s coming soon, and Cronos is already taking it by storm. According to various reports, Canada is making recreational cannabis legal in the country for adult-use starting on October 17th. With this news in mind, various companies in the sector, including CRON are working to carve out their small corners of the market. However, the Cronos corner is no small chunk.
The company has announced agreements with the Ontario Cannabis Retail Corporation, the BC Liquor Branch, the Nova Scotia Liquor Corporation and Prince Edward Island Liquor Corporation. In fact, due to these agreements, their products will be available in the four provinces that represent more than 50% of the total population in Canada. As a result of this, CRON is likely to become a leading brand in the Canadian cannabis sector, even though the sector hasn’t even been born yet.
While others, including Canopy Growth Corporation (CGC) and Tilray (TLRY) have announced agreements of their own, CRON is the company that seems to be making the most headway with these agreements, which now cover more than half of the target population.
What We’re Seeing From The Stock
With the commercial launch of adult-use cannabis in Canada just around the corner, Canadian cannabis companies, including Cronos are flying. However, the movement in Cronos is arguably the most impressive. It makes sense too. The company has been the most active company when it comes to creating agreements with distributors in the region. So, it comes as no surprise that excited investors continue to send the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:15), CRON is trading at $13.25 per share after a gain of $1.21 per share or 10.05% 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 work to take the Canadian adult-use market by storm as the company has done a great job of doing just that so far. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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