ROTFLMFAO..
WE TOLD YA FOR THE LAST 5 YEARS NOW IGITS!
live and learn fuck wads!
You've got NO CLUE!
Poor little rich kids. Canadian cannabis vendor Cronos Group has $2 billion in its pocket and yet says it can’t find enough good marijuana.
The company blamed a shortage of suitable product on Canada’s wholesale market for its paltry $4 million in marijuana sales in the most recent quarter.
Many of its rivals invested heavily in greenhouses to grow their own supply. Cronos (ticker: CRON) instead chose an “asset-light” approach, figuring that it could rely on third-party growers—the same way that Altria Group (MO), its 45% shareholder, buys tobacco from independent farmers.
But wholesale pot of consistent quality remains scarce, Cronos CEO Mike Gorenstein said on Thursday’s conference call. While the cannabis derivatives used for vaping or edibles can be extracted from a variety of sources, the dried flowers used in smoking won’t have consistent qualities unless a company grows them in-house or gets them from suppliers who all grow the same genetic stock, he said.
Gorenstein is confident that Canada’s wholesale supply will eventually catch up with demand. Cronos, meanwhile, is busily building greenhouses and starting crops that will allow it to get more product on retail shelves later this year.
Even with its shares down at $14 from a February height of $25, Cronos has a market cap of $4.7 billion. That’s more than 200-times its annualized March quarter sales.
WE TOLD YA FOR THE LAST 5 YEARS NOW IGITS!
live and learn fuck wads!
You've got NO CLUE!
Poor little rich kids. Canadian cannabis vendor Cronos Group has $2 billion in its pocket and yet says it can’t find enough good marijuana.
The company blamed a shortage of suitable product on Canada’s wholesale market for its paltry $4 million in marijuana sales in the most recent quarter.
Many of its rivals invested heavily in greenhouses to grow their own supply. Cronos (ticker: CRON) instead chose an “asset-light” approach, figuring that it could rely on third-party growers—the same way that Altria Group (MO), its 45% shareholder, buys tobacco from independent farmers.
But wholesale pot of consistent quality remains scarce, Cronos CEO Mike Gorenstein said on Thursday’s conference call. While the cannabis derivatives used for vaping or edibles can be extracted from a variety of sources, the dried flowers used in smoking won’t have consistent qualities unless a company grows them in-house or gets them from suppliers who all grow the same genetic stock, he said.
Gorenstein is confident that Canada’s wholesale supply will eventually catch up with demand. Cronos, meanwhile, is busily building greenhouses and starting crops that will allow it to get more product on retail shelves later this year.
Even with its shares down at $14 from a February height of $25, Cronos has a market cap of $4.7 billion. That’s more than 200-times its annualized March quarter sales.
