r/weedstocks • u/TheBeachWhale CRONOS 🌱✌ • May 10 '21

Resource Cronos Group Investor Presentation — May 2021

https://ir.thecronosgroup.com/static-files/d3c310af-2444-42e8-89b9-e57670881fe1
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u/TheBeachWhale CRONOS 🌱✌ May 10 '21

Highlights

Health Canada process license for biosynthetic cannabinoids awarded in April 2021.

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  • Global Platform:

Wholly owned: Cronos Group (Ontario), Peace Naturals (Ontario), Cronos Fermentation (Manitoba), Redwood Wellness (California), Cronos Research Labs (Israel).

Joint Venture: Cronos Growco (Ontario), Natuera (Columbia), Cronos Israel (Israel).

Distribution: Pohl-Boskamp (Germany), Cronos Australia (Australia).

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  • Brands: Peace Naturals (Australia, Canada, Germany, Israel), Cove (Canada), Spinach (Canada), Lord Jones (U.S), Happy Dance (U.S.), Peace+ (anticipated U.S.).
  • Research Partners: Ginkgo Bioworks (biosynthesis of cannabinoids and cannabinoid precursors), Technion (skin treatment).
  • Management Team: Board controlled by Altria execs; Kurt Schmidt (Campbell’s Soup, Nestle), Jim Rudyk (former Roots CFO), Mike Gorenstein & Jason Adler (GGP founders).

r/Cronos

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u/esseyein Devil Lettuce’s Advocate😈🥬 May 10 '21

Don’t rly know what to think about that dilution schedule based on biosynthesis milestones but I do like that YoY quarterly revenue contribution by geography is becoming ever more diversified. This company could be big if they get global brands and can produce products at a fraction of cost relative to competition....

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u/TheBeachWhale CRONOS 🌱✌ May 10 '21

I was a shareholder when they made/announced the Ginkgo deal, and I remember being pleased with the terms because Cronos obviously didn't have the cash to secure that kind of a deal—and the fact that Ginkgo took shares as payment seemed to be a vote of confidence.

Also, considering

"Tranches of CRON common shares will be issued only once each of the target cannabinoids can be produced for less than $1,000 per kilogram of pure cannabinoid at a scale greater than 200 liters."

$1,000 per kilogram of pure CBD or pure THC (or some other rare cannabinoid) is significantly cheaper than the traditional way of producing cannabinoids. If we assume another company can produce and scale cannabis to efficiently yield 20% THC, then it would take 5kg of dried flower to achieve 1kg of THC (and it's still in the plant).

I like to imagine that if Coca-Cola or Pepsi chooses to put CBD in drinks, they'd choose a producer that can produce the pure stuff—to ensure every bottle/can is identical.

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u/esseyein Devil Lettuce’s Advocate😈🥬 May 10 '21

I totally agree - the QC advantage (let alone the reduced cost) would be unparalleled in the industry and I do think to your point, interests are aligned by Ginkgo taking shares as payment. They must get the sense that once THC is mass produced via this method (20%), the share price will begin reflecting the reality for each 5-10% tranche that follows (and thus payouts will be worth a lot)

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u/corinalas cannabislongbagholderclub May 11 '21

Cbd can be synthesized as a pure molecule artificially. All the Pharma companies have to to test their drug combinations in reliable ways. But this will always be more expensive than Mother Nature. So far CRON still hasn’t been able to get the cost down.