- Cronos Group, the Canadian cannabis company, announced Thursday a plan for the acquisition of a production and fermentation plant in Winnipeg, Canada.
- The shares increased by over 2% in the first news exchanges.
- The announcement comes just a day after the Cronos Group announced that it has hired a Mondelez veteran as its innovation manager.
- Watch the shares of the Cronos group live.
Partnerships and acquisitions are the name of the game for large cannabis companies seeking to grow rapidly.
Shares of Cronos Group, a Canadian cannabis company, jumped more than 2% in early Thursday trading after the announced company an agreement for the purchase of a state-of-the-art fermentation and production plant by Apotex Fermentation.
The facility is located in Winnipeg, Canada, and has fully equipped laboratories covering microbiology, chemistry, quality control and method development. It also has two large fermentation production areas, which will increase Cronos' ability to produce "commercially grown cannabinoids with high quality and high purity".
The new plant will be called Cronos Fermentation. It will help the Cronos Group partnership with Ginkgo Bioworks by providing the fermentation and production necessary to capitalize on the agreement.
"Together with Ginkgo, we are bringing innovation and the power of organic production to the cannabis industry, with the goal of allowing the production of cannabinoids on a large scale and with greater efficiency than is currently possible with cultivation and production. "Traditional mining," said Mike Gorenstein, CEO of Cronos Group in a statement. "We continue to be very excited about future opportunities."
The announcement comes after Cronos Group announced it has done so he also appointed a new Chief Innovation Officerto his staff. Dr. Todd Abraham joins the company after a career in traditional packaged food products at Mondelez International, Nabisco Foods Company and Pillsbury Company.
To grow rapidly and scale, cannabis companies have started many late partnerships. Cronos has a partnership with Altria Group, a great tobacco producer and trader. Competitors also collaborated with companies such as Constellation Brands, which holds a majority stake in Canopy growthand Anheuser-Busch InBev, which has a joint venture with Tilray.
Shares of The cronos have increased by over 40% year to date.