Greenlane And Canopy Growth In Exclusive Distribution Deal For Storz & Bickel Vapes
Greenlane stocks rallied after the announcement
Cannabis stocks were mixed Thursday, as investors digested a surprise profit from Toronto-based Cronos that was mostly due to a change in the value of derivative liabilities.
U.S.-listed Cronos shares rose early in the day before paring those gains to trade down 4% in the regular session. Cronos said it had income of C$251 million ($189 million), or 22 cents a share, in the quarter, up from C$762,000, or breakeven, in the year-earlier period. Income was boosted by a C$264 million gain on the revaluation of derivative liabilities, which was offset by a C$991,000 loss on equity investments.
Net revenue remained small at C$10.2 million, up from $3.4 million. The FactSet consensus was for a loss per share of 3 cents and revenue of just C$7.3 million.
Cronos said it sold 1,584 kg of product in the quarter, up from 477 kg a year ago. The average cost of sales before fair value adjustments per gram sold was C$3.01, up 14% from C$2.63 in the second quarter of 2018. The company has a $4.8 billion market cap and has gained 35% in 2019, despite its small revenue base. All six analysts polled by FactSet rate the stock a buy.
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