CRON's acquisition of CanAdelaar and expansion into Europe and Australia position it for accelerated growth and margin improvement over the next 24-36 months.  GrowCo's completed capacity expansion and 70% flower volume increase in 2026 are expected to drive top-line and EBITDA margin gains.  Regulatory catalysts, including potential US cannabis reclassification and liberalization in Europe, could unlock further upside for CRON's growth strategy.  Morsa Images/DigitalVision via Getty Images  Update Coverage on Cronos  I last talked about Cronos ( CRON ) in March 2025 and I opined that the stock is a “Strong Buy.” Since that discussion, Cronos stock has trended higher by 38%.  As  This article was written by  Analyst's Disclosure: I/we have a beneficial long position in the shares of CRON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.  Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Cronos: Geographic Expansion Backed By A Strong Balance Sheet

FatCamera/E+ via Getty Images
Canada-based global cannabinoid company Cronos (NASDAQ: CRON ) Thursday reported an expansion of Cronos Growing Company (“GrowCo”), in which it owns a 50% stake. Cronos will provide an approximately $51 million (C$70 million) secured non-revolving credit facility to GrowCo to fund facility expansion, enabling growth opportunities in the markets Cronos operates in today as well as enabling future growth into new markets that open. On July 1, 2024, the GrowCo board of directors will expand to five members, three of whom will be appointed by Cronos ( CRON ). Cronos will have the option to purchase up to 70% of the total production from the expanded facility, and will be consolidating the joint venture’s results in its financial statements beginning in the third quarter of 2024. “This investment enables GrowCo to increase its production of high-quality cannabis which supports our ambition to expand across the markets we operate in, and add new international growth opportunities where they arise,” said Mike Gorenstein, Chairman, President, and CEO of Cronos. CRON -0.65% premarket to $2.30.

Canadian cannabis producer Cronos reports expansion of GrowCo

Cronos : 2022 &ndash; Q3 Transcript

Cannabis Greenhouse Developer Files Bankruptcy
GrowCo Inc. listed assets in the $1 million to $10 million range. A Denver-based company that builds greenhouses for marijuana growers and has raised more than $15 million from investors has filed for Chapter 11 bankruptcy. Denver-based GrowCo Inc. said in the filing last week that it owes at least $8.55 million to fewer than 50 creditors, although it disputes several million dollars’ worth of those claims. The company listed assets in the $1 million to $10 million range. Cannabis Industry, Blockchain Working Together to Prove That's Really CBD in Your Water
Blockstrain uses blockchain to verify cannabis genetics. Cannabis and blockchain often draw comparisons for the wild volatility they bring to markets, but one company is attempting to show that a combination of the two can provide a measure of stability for consumers. Vancouver-based Blockstrain Technology Corp. uses blockchain to verify cannabis genetics and assure consumers that they’re getting what they think they’re getting. The Canadian company announced its first foray into the U.S. Tuesday, signing a letter of intent with Los Angeles-based NXT Water LLC to develop and launch Akeso Functional Fitness Water, a CBD-infused drink that markets itself as the “first-ever fully transparent beverage.”
CBD, which stands for cannabidiol, is burgeoning in popularity after the U.S. farm bill legalized a hemp-derived version of the non-intoxicating extract last month. But the U.S. CBD market has been overrun with low-quality products from unverifiable sources, according to Blockstrain Chief Executive Officer Robert Galarza. Illinois Legislators Lay Out Plans for Recreational Marijuana Proposal
Under the proposal, marijuana “bars” would be prohibited, and teenagers caught driving under the influence of marijuana would lose their licenses. Marijuana “bars” would be prohibited, and teenagers caught driving under the influence of marijuana would lose their licenses, a Springfield audience was told Monday night by lawmakers crafting a bill to allow recreational use of cannabis in Illinois. Hearing those details pleased state Sen. Andy Manar, D-Bunker Hill, whose town hall-style meeting on the issue attracted close to 100 people at Lincoln Library. Manar said he hasn’t taken a stand on a potential bill but said he was glad to provide a forum in which citizens could ask questions about the concept of marijuana legalization for adults to two fellow legislators leading the debate in the Illinois General Assembly. State Sen. Heather Steans, D-Chicago, told the audience, “We have a huge opportunity in Illinois to do this right and carefully.”
The venture also brings Khiron's Kuida cosmeceutical brand to the federally legal U.S. CBD cosmetic market. DENVER and TORONTO, Jan. 30, 2019 /CNW/ - PRESS RELEASE - Dixie Brands Inc. , a cannabis consumer packaged goods (CPG) company, and Khiron Life Sciences Corp. , a vertically integrated medical cannabis company focused on Latin America, have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market. Dixie will also manufacture and distribute Khiron's Kuida brand of cannabidiol (CBD)-based cosmeceuticals in the United States, targeting the growing Hispanic population. Completion of the JV is subject to TSX Venture Exchange approval. By combining Dixie's market-ready portfolio of cannabis-infused products with Khiron's established footprint throughout Latin America, the companies aim to capture first-mover advantage and establish leadership in one of the world's fastest-growing cannabis markets. The agreement also creates a framework for the development of new products and brands tailored to Latin America, allowing Dixie and Khiron to take full advantage of opportunities resulting from cannabis legalization throughout the region. Alvaro Torres, co-founder and CEO of Khiron Life Sciences, stated, "This joint venture is a combination of two companies coming together to bring great brands with highly complementary products, distribution capabilities and expertise. The joint venture gives us important access to expand the reach of our Kuida cosmeceutical brand into the U.S. market, and by introducing a proven set of product formulations, we can more effectively leverage the infrastructure and relationships we are putting in place across Latin America." Chuck Smith, president and CEO of Dixie Brands, stated, "This joint venture will launch Dixie's portfolio of brands throughout Latin America and demonstrates the value and scalability of the product portfolio we have developed and marketed over the past nine years. Khiron is the clear leader in the Latin American cannabis space with an excellent operating team and a growing presence across the region. We look forward to aggressively supporting this push into Latin America as Dixie executes against its plan to expand into new international markets and build the leading global CPG cannabis company." Joint Venture Details
Pursuant to the letter of intent, Khiron will operate the JV from its base in Bogota, Colombia with responsibility for regulatory matters, cultivation, manufacturing and distribution. Dixie will contribute intellectual property including its extensive brand portfolio, product formulations and production processes. The two companies will collaborate on the development of new brands and products as appropriate for local Latin American markets. Dixie's flagship Dixie Elixirs brand offers more than 100 SKUs spanning 15 product categories in the regulated infused tetrahydrocannabinol (THC) industry, with products currently sold in more than 1,000 regulated dispensaries in four U.S. states. Dixie's two hemp-derived CBD wellness companies, Therabis and Aceso, are focused on pet and human supplements which are sold through its e-commerce platform as well as traditional commercial retail distribution relationships expected to reach thousands of locations in 2019. Dixie will manufacture Kuida products in the U.S. and market them through its growing network of channels as it executes its expansion strategy. Hillcrest Merchant Partners Inc. acted as advisor on the JV and, upon completion of the JV, will receive an advisory fee payable equally by the parties in shares of Dixie and Khiron. Completion of the JV and the commencement of operations is subject to the execution of definitive agreements and receipt of all required regulatory approvals, including final acceptance of the TSXV. Latin American Cannabis Market
The Latin American region is among the world's fastest-growing cannabis markets as a number of countries move towards legalization. In Mexico, a global top-15 GDP country, the government has introduced legislation to permit medical and adult use for cannabis in 2019. According to Quintiles IMS, there are approximately 68 million potential patients in Latin America that could benefit from medical cannabis. Khiron has entered the markets in Colombia, Peru, Chile and Mexico, and recently announced plans to enter Brazil and Uruguay through its proposed acquisition of NettaGrowth International Inc. Upon completion of the NettaGro transaction, Khiron will be present in markets which collectively represent more than 75 percent of the total Latin American population of 620 million people. Kuida, its comprehensive portfolio of CBD-based skin and body care products for women, can be seen at www.kuidaskincare.com . U.S. CBD Market
The Hispanic population in the United States is estimated at almost 60 million and is among the country's fastest-growing demographic groups. CBD-based products have become increasingly popular in the U.S., and the legalization of hemp through the recently-signed Farm Bill is helping to increase acceptance both by consumers and major retailers. Market research company Brightfield Group projects hemp-derived CBD sales in the U.S. of $22 billion by 2022. Kuida will be one of the first CBD brands specifically targeting Hispanic Americans. LOS ANGELES, Jan. 30, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- PRESS RELEASE -- Cannabis Strategic Ventures, Inc. has announced its plan to break ground on a six-acre canopy cultivation site in Northern California, which will be known as The NUGS Farm. Complimentary to this land acquisition, the company has obtained from the State of California over 20 licenses for cannabis manufacturing, distribution and cultivation. “Establishing The NUGS Farm and securing these licenses are significant milestones for Cannabis Strategic Ventures. We are proud of what we have accomplished at this stage of the company,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “As the cannabis industry expands, and as we work to make cannabis legal on a federal level, Cannabis Strategic Ventures will be in position to touch on all areas of cannabis production.”
California Governor Gavin Newsom, an active proponent for Proposition 64 which legalized the recreational use of cannabis in 2016, continues to support the California cannabis industry and recently recommended a sharp increase in spending for marijuana regulatory programs for the upcoming fiscal year. “They say that the way California goes, the direction of the country goes,” added Yu. “We are optimistic that federal regulations will become more cannabis friendly in the near future and are excited for the positive impact it can have on our company."

Cannabis Greenhouse Developer Files Bankruptcy

Cannabis greenhouse developer files bankruptcy
Thomas Gounley
GrowCo builds greenhouses for marijuana growers. (BusinessDen file photo)
A Denver-based company that builds greenhouses for marijuana growers and has raised more than $15 million from investors has filed for Chapter 11 bankruptcy. Denver-based GrowCo Inc. said in the filing last week that it owes at least $8.55 million to fewer than 50 creditors, although it disputes several million dollars’ worth of those claims. The company listed assets in the $1 million to $10 million range. Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time. GrowCo is a subsidiary of Aurora-based Two Rivers Water & Farming Co., which owns a significant amount of water rights in the Arkansas River Basin in southwestern Colorado. Two Rivers said in an April SEC filing that it formed GrowCo in 2014 to “take advantage of the rapidly growing demand for marijuana, both medical and recreational, within the State of Colorado.”
“GrowCo constructs state-of-the-art computer-controlled greenhouses for leasing to licensed marijuana growers throughout the United States,” Two Rivers said in the filing. “GrowCo is not a licensed marijuana grower or retailer. GrowCo does not ‘touch the plant’ and only provides growing infrastructure as a landlord for licensed marijuana grower tenants along with support and administrative services.”
In 2015, The Denver Post reported that GrowCo had secured 160 acres east of Pueblo , and planned to build four sets of 91,000-square-foot greenhouses and 15,000-square-foot warehouse/processing facilities. GrowCo is led by CEO John McKowen, according to the bankruptcy filing, and lists its principal place of business as a home in Cherry Creek. McKowen purchased the home for $2.14 million in 2007, according to property records. GrowCo disputes the largest claim against the company, for $2.12 million by Blue & Green LLC. That entity sued GrowCo in January 2018, saying the company had defaulted on that amount in loans . Thomas Prasil Trust of Paradise Valley, Arizona, is the one other creditor with a claim greater than $1 million. GrowCo’s website is no longer active. Two Rivers did not respond to a request for comment. David Wadsworth of Littleton’s Wadsworth Warner Conrardy is representing the company in the bankruptcy proceedings. An email sent to Wadsworth Monday morning was not returned.

Cannabis greenhouse developer files bankruptcy

GrowCo provides growing infrastructure and water to licensed cannabis farmers. Using agricultural know-how and experience with logistics, the company builds modern, high-efficiency greenhouses that help cannabis farmers double their output at half the cost. It is based in Denver, Colorado. It operates as a wholly owned subsidiary of Two Rivers (TURV).

Date	Round	Amount	Investors	Valuation Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.	Revenue	Sources
3/7/2017	Unattributed - III	$5M	Undisclosed Investors	$XXM	$X.XXB ((X.XXx)) FY XXXX	3
9/7/2016	Debt - II	$XXM	Subscribe to see more	$XXM	$1M - $5M FY 2016	10
1/5/2016	Unattributed - II	$XXM	Subscribe to see more	$XXM	$X.XXB ((X.XXx)) FY XXXX	10
10/1/2015	Unattributed	$XXM	Subscribe to see more	$XXM	$X.XXB ((X.XXx)) FY XXXX	10
7/20/2015	Debt	$XXM	Subscribe to see more	$XXM	$X.XXB ((X.XXx)) FY XXXX	10

Date	3/7/2017	9/7/2016	1/5/2016	10/1/2015	7/20/2015
Round	Unattributed - III	Debt - II	Unattributed - II	Unattributed	Debt
Amount	$5M	$XXM	$XXM	$XXM	$XXM
Investors	Undisclosed Investors	Subscribe to see more	Subscribe to see more	Subscribe to see more	Subscribe to see more
Valuation	$XXM	$XXM	$XXM	$XXM	$XXM
Revenue	$X.XXB ((X.XXx)) FY XXXX	$1M - $5M FY 2016	$X.XXB ((X.XXx)) FY XXXX	$X.XXB ((X.XXx)) FY XXXX	$X.XXB ((X.XXx)) FY XXXX
Sources	3	10	10	10	10

How VCs Use CB Insights

Professional Services

Platform Overview

GrowCo

Total Raised

Funding, Valuation & Revenue