Cronos, a Canadian licensed marijuana producer, marked an industry milestone on February 27, 2018, by becoming the first Canadian marijuana stock to commence trading on the Nasdaq.
The Cronos Group stock is trading under the ticker symbol “CRON” on the U.S. exchange. The stock started trading on Tuesday at US$8.24, and closed the day at US$7.62. The stock closed considerably higher yesterday at $9.69.
The marijuana laws in the U.S. are precarious. Although legal in some states – via state led initiatives, the drug is deemed illegal under federal law. Uncertainty for U.S. investors continues to grow, especially since the Trump administration rescinded the Cole Memorandum that protected state marijuana laws. The Federal Attorney General Jeff Sessions issued the memo, on January 4, directing all US attorneys to enforce prohibitive federal marijuana laws.
The Globe and Mail said, “That doubt has also stopped Americans from investing in Cronos even though it doesn’t do business in the United States, says Michael Gorenstein, the company’s chief executive officer. He says the prestige and credibility that comes with a Nasdaq listing should quell those fears and help set Cronos apart from other Canadian growers.”
“This does help provide a lot of comfort and clarity,” he said. “If it were illegal, the Nasdaq wouldn’t list it. By being listed on the Nasdaq, it removes that doubt from their mind.”
The Cronos Group company is a geographically diversified across Canada and vertically integrated. It operates within Health Canada’s Access to Cannabis for Medical Purposes Regulations and distributes products globally across four continents.
Their portfolio consists of 100% ownership of Peace Naturals, 100% ownership in OGBC and 21.5% ownership of Whistler Medical Marijuana Company (WMMC). These companies are licensed to cultivate and sell medical marijuana.
By Marijuana.Ca Staff