Cronos Unveils Next Part of Its Asia if not Global Cannabis Strategy
February 21st, 2018
With eyes on Europe right now as new announcements and deals were announced almost weekly during the first six weeks of the year, it is clear that the EU is not the only centre of all things international and cannabinoid related.
Australian development, pumped in part also by the money and expertise of the largest Canadian firms, is also proceeding apace.
In the first week of February, as the world suddenly realized that the Italian military were getting out of the pot producing business, Cronos Group unveiled a massive Australian joint venture with Australian company NewSouthern Capital Pty Ltd to launch Cronos Australia Pty Ltd. The group has just announced the first phase of an AUS$10 million (USD$8 million) production facility to meet demand in both Australia and other parts of Asia.
It is a prescient move indeed, coming just weeks before Benjamin Netanyahu put Israel’s about-to-be approved export plans on ice after a request from Donald Trump. In fact, Australian cannabis firms and the Canadians they are partnering with, appear to be the immediate beneficiary of this latest anti-cannabis salvo from the White House. Cronos specifically, had just established as of September 2017, a strategic joint venture with Kibbutz Gan Shmuel in Israel for the production of cannabis and its export to 35 countries and other parts of Asia.
The Evolving Cannabinoid Export Market Map
Australia is going to be a critical launching point for the Southern Hemispheric cannabis revolution. Not to mention a valuable source of raw product for firms participating in the global one. The country represents a large, domestic, English-speaking audience, but producers Down Under are not shy about their aspirations internationally.
That starts with the rest of Asia. With Israel out of the picture on this front, it sets up Canadian-Australian partnerships of the kind that are now forming in fact, to establish a lock-up on international distribution relationships for whole countries.
A look at who else has blazed a path in Australia recently, only bears this out. The largest Canadian LPs, including Canopy and Aurora, have also entered the market via similar partnerships.
However, it does not stop there. It is clear that as much as Canadians are leapfrogging into the country, these Australian firms are right in the thick of Euro action, back into (particularly) Germany and Eastern Europe.
Cronos, in fact, made news last fall by entering into a distribution deal in Germany that puts its product in over 12,000 pharmacies around the country.
There is a clear connection to what is going on in Australia, Canada and Germany, right now, in other words, and Cronos is right in the middle of it.
The Race To Source Cheap, Abundant, High Quality Crops
As the ongoing drama about exports in Israel demonstrate, those firms and countries who position themselves in the evolving medical marijuana source game – globally – will be able to lock up world-wide distribution rights for at least the next generation. If not hold a monopoly position in the most valuable cannabis markets as they transition, inevitably, to recreational use.
In the meantime, however, it means that a handful of firms (less than 10), all with Canadian roots or connections, can now source the cheapest cannabis on the planet, from all the major centres of production now in existence or about to be in construction.
For Canadians, Danes, Australians and Germans (among a few others), this means that medical crops will come from home first. But in the face of lagging production, or even shortages, cheaper markets will inevitably begin to supply, where it is cost efficient, some qualities of oil, extract and actual pharmacized cannabinoids to such western and more wealthy markets.
So what does this newest announcement really say about Cronos? It is a firm indisputably in the global club of major cannabis producers. And it is beyond doubt that Australian grown cannabis may well end up (at least) in a pharmacy near you.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.