As far as I know, they haven’t shared major plans for spending it yet, but they’ve used some for smart expansions, like growing in Germany and Australia, which boosted 2024 revenue.
I think they’re being cautious because the cannabis market is still tough. Instead of taking big risks, they’re earning a solid return on their cash while waiting for better conditions.
And honestly, time is on their side. Thanks to its strong balance sheet, Cronos is somewhat "built" for times like this.
As weaker competitors go out of business, Cronos gains more market share. In a weird way, Canada is currently fighting for Cronos by wiping out its competition—probably the best market share expansion strategy Cronos could ask for.
I think this is why management isn’t rushing into riskier moves. They’re playing the long game, staying patient, and likely positioning themselves for an eventual opening in the U.S. market.
Regarding the entry to US market, why wouldnt any potential market share be taken up by the myriad of US based cannabis companies before CRONOS (or ALTRIA) could benefit?
thanks for the write up! few questions: why are they sitting on this bag of money? did they communicate any plans?
how are they gonna grow, are there no possible options to use that pile of cash for creating more growth or even shareholder value?
in this press release they said the buyer of the stayner campus didnt meet their conditions and thats why the deal is off. https://ir.thecronosgroup.com/news-releases/news-release-details/cronos-terminates-sale-leaseback-peace-naturals-campus/
Thanks for reading! Great question.
As far as I know, they haven’t shared major plans for spending it yet, but they’ve used some for smart expansions, like growing in Germany and Australia, which boosted 2024 revenue.
I think they’re being cautious because the cannabis market is still tough. Instead of taking big risks, they’re earning a solid return on their cash while waiting for better conditions.
And honestly, time is on their side. Thanks to its strong balance sheet, Cronos is somewhat "built" for times like this.
As weaker competitors go out of business, Cronos gains more market share. In a weird way, Canada is currently fighting for Cronos by wiping out its competition—probably the best market share expansion strategy Cronos could ask for.
I think this is why management isn’t rushing into riskier moves. They’re playing the long game, staying patient, and likely positioning themselves for an eventual opening in the U.S. market.
Really excellent write up/ analysis!
Regarding the entry to US market, why wouldnt any potential market share be taken up by the myriad of US based cannabis companies before CRONOS (or ALTRIA) could benefit?