Toronto-based cannabis producer Cronos Group Inc. (TSX: MJN) (OTC: PRMCF) announced that trading of its common shares in the US will be elevated from the Nasdaq International Designation to the Nasdaq Global Market. Cronos expects this to happen on February 27, 2018, under the symbol CRON. Cronos Group will retain its listing on the TSX Venture Exchange under the symbol MJN.
The stock rose 10% to $7.76 on the news today. The company has a market cap of $1.24 billion, putting it in the top 10 of cannabis producers. Its price to sales ratio is an enormous 220, but its revenue was only $5 million in the past 12 months, so as sales rise substantially, which they should, this ratio will fall to more reasonable levels. For example, if sales go to $50 million and the share price stays the same, the price to sales ratio will be 22. And if sales go to $200 million at this share price, price to sales will be about 5, in line with the tobacco industry.
“This…reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint,” said Mike Gorenstein, CEO of Cronos Group. “We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”
Cronos Group is a globally diversified and vertically integrated cannabis company with a presence on four continents. The Company operates two wholly-owned Canadian Licensed Producers: Peace Naturals Project Inc. (Ontario), and Original BC Ltd. (British Columbia), based in the Okanagan Valley.
Cronos has international production and distribution through Cronos Israel and Cronos Australia. Cronos Group has access to over 12,000 pharmacies in Germany through an exclusive distribution agreement.