Investing in the future
Cannabis companies have been getting innovative by reaching beyond traditional uses. In Cronos Group’s (CRON) fourth-quarter earnings call, the company shed some light on its future innovation.
Through Cronos Group’s partnership with Ginko Bioworks, the company aims to produce cannabis through fermentation, which mimics the properties found in the cannabis plant. In the press release, Cronos Group said, “The research and development partnership is focused on producing large volumes of eight target cannabinoids, including rare cannabinoids, from custom yeast strains by leveraging existing fermentation infrastructure without incurring significant capital expenditures to build new cultivation and extraction facilities.”
Cronos Group will be investing ~$22 million in the company. The investment is subject to achieving milestones.
Cronos Group is also experimenting with skin care products through its partnership with Technion. Cronos Group aims to develop skin care products with Technion that will treat skin disorders like acne and psoriasis and regulate skin health. However, the products will take about three years to develop. During this period, Technion will conduct its pre-clinical studies.
Cronos Group reported a net loss of 19.2 million Canadian dollars in the fourth quarter—compared to net earnings of 2.4 million Canadian dollars in the fourth quarter of 2017.