Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly-owned Canadian licensed producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc., which was the first non-incumbent medical cannabis license granted by Health Canada and Original BC Ltd. (British Columbia), which is based in the Okanagan Valley.
The Company has multiple international production and distribution platforms including Germany, Israel and Australia. The Company is rapidly expanding its global footprint as it focuses on building an international iconic brand portfolio and developing disruptive intellectual property.
Cronos Group is committed to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.
Cronos Group, formerly known as PharmaCan Capital Corp., is a vertically integrated cannabis company with great geographical diversification as the foundation for growth across both medicinal and recreational marijuana.
With solid quarter on quarter growth of nearly 100% in the last quarter, Cronos is also preparing for the future by expanding its current production capacity and targeting strategic growth in booming medicinal markets such as Germany.
Cronos has the pieces to stay competitive in the cannabis market, proven by their partnerships, competitive oilbased products, and growing operations in Canada and Israel (a facility that will produce cannabis at very low cost).
- It’s distribution license with Pohl in Germany gives it a prime foothold in the German medicinal market. This market is so very lucrative as the costs of the marijuana is covered by the insurance companies
- It’s joint venture with Kibbutz Gan Shmuel in Israel gives it a very low cost, high quality supply of marijuana
- It’s state of the art oil extraction laboratory is going to produce new revenue lines in the oil channel (which is the fastest growing channel)
- Exclusive supply agreement with Pohl-Boskamp, an international pharmaceutical manufacturer and supplier founded in 1835
- Pohl distributes products to over 12,000 German pharmacies
- German parliament implemented health insurance coverage for patients
- Large shortage of medical cannabis exists in Germany
- Recently received both a cultivation and a research license
- A 50/50 joint venture that will serve as the hub for Australia, New Zealand, and South-East Asia
- Campus is located on 120 acres and will initially include a 20,000 sq. f. purpose -built facility with an expected annualised production capacity of 2,000KG
- Facility will be designed considering both Good Production Practices and Good Manufacturing Practices (GMP)
An industry first strategic joint venture with Canadian First Nations. Through this came the formation of a new company and brand – Indigenous Roots
- Underserved indigenous communities stand to benefit from medical cannabis access
- Most Indigenous health needs are covered by Non-Insured Health Benefits Program (NIHB)
- First Nations are subject to different regulations than traditional businesses
- First Nations communities provide optionality for unique distribution channels
Genetics and Methods
New LPs need to source genetics from existing LPs,
Cronos has over 150 unique cultivars
Custom built CO2 extraction equipment removing the need for post-processing and maintaining natural balance of the plant
GMP facilities & extraction labs allow for metabolite identification, separation and recombination to produce formulated products
Unique light mapping systems and environmental controls allow for metabolite manipulation and increased yields
Research projects with experts from Cornell University, University of Toronto, Hebrew University, Volcani Center, Fluence Bioengineering and P.L. Light Systems
Peace Naturals - Medicinal Cultivation
95 acres zoned for cannabis production, on-site well, natural gas co-gen line, and phase 3 power and a 5,000kg production capacity
Peace Naturals broke ground on a massive new expansion that it’s calling the “World’s Largest Purpose-Built Indoor Cannabis Facility.”
- 315,000 sq. f. expansion includes: a state-of-the- art 286,000 sq. f. indoor production facility, a 28,000 sq. f. greenhouse, and a 1,200 sq. f. extraction lab
- Greenhouse and extraction laboratory expected to be completed & operational in Q4, adding 1,000 kilos to annualized capacity
- Indoor facility expected to be largest purpose-built indoor cannabis production facility in the world, fully operational by Summer 2018
- Domestic capacity to reach 40,000KG prior to 2019
OGBC - Recreational Cultivation
- Formerly “The Zone”
- Based in Okanagan Valley, BC with a 2,000 sq. f. pilot facility
- 31 acres zoned for cannabis production with premium genetics sourced from WMMC.
- On-site artesian well providing free source of water (200+ gallon per minute capacity)
- Climate and power cost advantage over other Canadian jurisdictions.
Kibbutz Gan Shmuel
- Strategic joint venture with Kibbutz Gan Shmuel, which already exports to 35 countries throughout Europe & Asia.
- Ideal climate enables production of high quality medical cannabis at an expected cost of between $0.40 and $0.50/g
- Over 1,000 agriculturally skilled Kibbutz members live on site and existing infrastructure available to support operations
- Situated on 4,939 acres of mixed-use agricultural/ industrial land, with ability to expand beyond 100,000 KG annually
- Phase 1: 45,000-sq. f. greenhouse, 5,000 KG annually
- Phase 2: increase capacity to 24,000 KG annually
Michael Gorenstein -CEO & Chairman
Mr. Gorenstein is a partner at Alphabet Ventures LLC, a multi-strategy investment management firm located in New York City. Prior to Alphabet Management, Michael was the VP and General Counsel of Saiers Capital LLC and a corporate attorney at Sullivan & Cromwell where he focused on Mergers and Acquisitions and Capital Market transactions.
Michael graduated from the University of Pennsylvania Law School with a JD, the Wharton School at University of Pennsylvania with a certificate in BEPP and the Kelley School of Business at Indiana University with a BSB in Finance.
David Hsu - Chief Operating Officer
Prior to joining Cronos, Hsu spent over 10 years with Deloitte/CRG Partners, a premier turnaround consulting firm where he operated and managed distressed companies with revenues in excess of $500M+.
His expertise includes financial and operational restructuring, growth creation, and lean manufacturing gleaned from experience working in various sectors including consumer packaged goods, manufacturing, distribution, media, and transportation. David graduated from Babson College
with a Bachelor of Science in Business Management and is a certified Lean Six Sigma Black Belt.
William Hilson - Chief Financial Officer
Mr. Hilson is a Certified Public Accountant (CPA) and has spent over 15 years as regional CFO for two publicly listed multinational pharmaceutical companies – Merck KGaA and Serono S.A. His expertise includes financial operations, strategy, performance management, sales & marketing, clinical trial management, international tax, debt & equity financing; including a NASDAQ initial public offering.
Prior to joining Cronos Group, William was also involved in a number of mergers & acquisitions and licensing deals in the pharmaceutical sector. He earned his CPA designation while working at a Toronto firm specialising in tax structure.
He graduated from the University of Toronto and The University of Western Ontario where he earned a Master of Science degree in Clinical Biochemistry and an Honours Bachelor of Genetics.