• Daily Marijuana Observer Facebook
  • Daily Marijuana Observer Twitter
  • Daily Marijuana Observer StockTwits
  • Daily Marijuana Observer SA
  • Daily Marijuana Observer Instagram
  • Daily Marijuana Observer Youtube
  • Pinterest Social Icon
  • Daily Marijuana Observer Talk Market

Cronos Israel to Produce Medical Cannabis for 50¢ Per Gram

November 9, 2017

 

Cronos Group Inc. (TSXV:MJN) (OTC:PRMCF) announced this morning that its previously announced strategic joint venture, dubbed "Cronos Israel", with Kibbutz Gan Shmuel for the production, manufacture, and global distribution of medical marijuana, has been approved by the TSX Venture Exchange.  

 

This announcement comes just weeks after Israel's agricultural ministry classified medical marijuana cultivation as farming, effectively granting cannabis cultivators a slew of government benefits and support.

According to the release, "Israel's climate, which is ideal for year-round greenhouse cultivation, coupled with Gan Shmuel's existing infrastructure and skilled labor force, will enable Cronos Israel to produce high quality medical cannabis at an expected cost of between $0.40 and $0.50 per gram."

 

Since Gan Shmuel is situated on 4,939 acres of mixed-use agricultural/industrial land, it provides Cronos Israel the ability to expand production capacity well beyond 100,000 kg per year to meet demand in Israel, Germany, and other future distribution channels. 

 

If such a low cost-per-gram can be achieved, that would give Cronos Israel a substantial edge over other medical marijuana producers. For instance, Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) just reported financial results this morning, which noted cash production costs of $1.92 per gram.

 

Cronos Group's International Presence

 

 

Cronos' presence in Israel only adds to the company's strong international positioning. Cronos-owned licensed producers have already had a successful shipment of medical cannabis oil to the Cayman Islands, and beyond that, the company recently entered into a strategic distribution partnership with G. Pohl-Boskamp GmbH & Co. KG to supply Peace Naturals branded cannabis products to Pohl-Boskamp for distribution within Germany

 

Leadership Changes

 

In addition to the announcement regarding Cronos Israel, the company also made some noteworthy leadership changes.

 

Ms. Xiuming Shum joins Cronos as General Counsel with eight years of transactional and in-house experience in mergers and acquisitions and regulatory change management.

 

Mr. Kevin Gifford joins Cronos as Vice President of Finance and Corporate Development with over 15 years of experience in both operating and investing in companies across multiple industries, including consumer products, business services, retail and technology.

 

Mr. Ran Gorelik joins Cronos as General Manager of Cronos Israel with over 20 years of entrepreneurial and operational experience in biotech and healthcare.

 

Conclusion

 

For Canadian L.P. updates direct to your inbox, be sure to subscribe to our Canadian L.P. Updates newsletter. For a broader range of cannabis news, be sure to subscribe to one of our other free e-mail newsletters. Also, be sure to connect with The Daily Marijuana Observer on Facebook, Twitter, StockTwits and Instagram!

 

D/M/O

Please reload

LATEST NEWS
Please reload

Please reload

DMO

© Copyright 2016-2020 Smoke Show Ventures, Inc.

RSS Feed

Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.