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May 14, 2019, 7:24 a.m. EDT

Cronos, MediPharm enter supply deal for private-label cannabis concentrate

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By Tomi Kilgore

Cronos Group Inc. /zigman2/quotes/206842762/composite CRON -5.20% /zigman2/quotes/202715342/delayed CA:CRON -5.98% announced Tuesday a supply deal with MediPharm Labs Corp. /zigman2/quotes/203412746/delayed MEDIF -3.46% /zigman2/quotes/213502136/delayed CA:LABS -1.14% , in which MediPharm will supply Cronos with about C$30 million ($22.3 million) of private label cannabis concentrate over 18 months. With certain renewal and purchase options, the deal could potential reach C$60 million over 24 months. The U.S.-listed shares of Cronos rose 3.1% premarket, while MediPharm's stock was still inactive. The companies have also entered into a multi-year tolling agreement, in which Cronos will supply bulk cannabis to MediPharm's extraction facility, to fulfill certain processing needs. "As the industry develops and matures, we see opportunity to work with companies like MediPharm Labs that provide specialized, high-quality services and inputs for our products," said Cronos Chief Executive Mike Gorenstein. Cronos's stock has rallied 37.2% year to date through Monday and MediPharm shares have rocketed nearly 4-fold (280%), while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ -3.00% has climbed 30.4% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.04% has gained 12.2%.

/zigman2/quotes/206842762/composite
US : U.S.: Nasdaq
$ 7.29
-0.40 -5.20%
Volume: 3.80M
May 10, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.86 billion
Rev. per Employee
$70,043
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/zigman2/quotes/202715342/delayed
CA : Canada: Toronto
$ 8.80
-0.56 -5.98%
Volume: 691,066
May 10, 2021 5:40p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.48 billion
Rev. per Employee
$93,949
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/zigman2/quotes/203412746/delayed
US : U.S.: OTC
$ 0.36
-0.01 -3.46%
Volume: 433,426
May 10, 2021 3:57p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$93.39 million
Rev. per Employee
$131,611
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/zigman2/quotes/213502136/delayed
CA : Canada: Toronto
$ 0.44
-0.0050 -1.14%
Volume: 590,781
May 10, 2021 5:40p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$113.50 million
Rev. per Employee
$176,529
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/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 20.70
-0.64 -3.00%
Volume: 1.01M
May 10, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,188.43
-44.17 -1.04%
Volume: 2.32B
May 10, 2021 5:40p
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