Cronus Corporation (CRON) Reports Q1 Revenues of $2.9M

Cronus Corporation (NASDAQ: CRON) reported Q1 revenues for the quarter came in at $2.9 million.

"We are pleased that the strategic initiatives launched in 2017 are coming to fruition," said Mike Gorenstein, CEO of Cronos Group. "2017 was a building block year which set the groundwork and foundation for the results achieved in the first quarter. Cronos is focused on continuing to increase capacity in order to serve existing distribution and newly established markets, developing intellectual property and launching recreational brands."

First Quarter 2018 Highlights

• Sales were $2.9 million for the first quarter of 2018 as compared to $0.5 million for the first quarter of 2017, representing an increase of $2.4 million, or 473%. Compared to the fourth quarter of 2017, sales increased by $1.3 million, or 83%, for the first quarter of 2018.
• Since November 2017 when Health Canada approved the Company's new extraction laboratory, Cronos Group has ramped-up production of strain-specific cannabis oils that have been received favorably by customers. In Q1 2018, cannabis oil sales represented 29% of domestic medical patient revenue. The Company expects oil sales to continue to become a larger part of sales over time.
• In February 2018, Cronos Group became the first licensed producer to list on a major stock exchange in the United States. The Company's common shares trade on the NASDAQ under the trading symbol "CRON".
• In February 2018, the Company announced a strategic joint for venture in Australia ("Cronos Australia") for the research, production, manufacture and distribution of medical cannabis. The Company owns a 50% equity interest in Cronos Australia. In the initial phase of the joint venture, Cronos Australia is planning to construct a 20,000 sq. ft. purpose built indoor facility that is expected to produce up to 2,000 kilograms of cannabis annually.
• In March 2018, Cronos Group announced a strategic joint venture with MedMen Enterprises USA, LLC. The Company owns a 50% equity interest in the joint venture MedMen Canada Inc. MedMen Canada is focused on branded products, research and development activities in Canada and creating a Canadian branded retail chain in provinces that permit private retailers.
• In January 2018, Peace Naturals received a dealer's license (the "Peace Naturals Dealer's License") from Health Canada pursuant to the Narcotic Control Regulations and the Controlled Drugs and Substances Act (Canada) ("CDSA") for the possession, sale, transportation and delivery of controlled substances under the CDSA. The Peace Naturals Dealer's License allows Peace Naturals to develop products that are not yet available for sale in Canada and to export medical cannabis extracts, including concentrated oil and resin products.
• Completed construction of, received regulatory approvals for, and commenced cultivation of cannabis in, the 28,000 sq. ft. greenhouse at Peace Naturals. The greenhouse's first harvest is expected to occur in the second quarter of 2018.
• Completed a rebrand of Peace Naturals, which included new proprietary packaging, an evolution of the brand's logo, new marketing materials, a revised website, a new shopping portal experience, and new products such as strain specific oils and limited edition cultivars. Peace Naturals also established a new classification system for products, which helped educate patients on key product differences.
• Strengthened liquidity by raising $46.0 million of gross proceeds through a bought deal offering by way of a short form prospectus offering in Canada in January 2018.

For earnings history and earnings-related data on Cronus Corporation (CRON) click here.

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