The marijuana industry has undergone a massive milestone as Toronto based Canadian company Cronus Group has become the first purely marijuana-based business to be listed on the stock market. The Securities and Exchange Commission have reviewed the company and given permission for Cronus to begin trading on the Nasdaq. This means that, for the first time, American investors can safely invest in the industry without fear of legal repercussions. It also heralds to the world that marijuana has truly landed as a viable, legitimate industry.
Not Available to the U.S.
Cronus, which will appear as CRON in the stock market, is only connected to countries that are currently not engaged in a federal ban, such as Israel, Australia, Germany and Canada. CEO Mike Gorenstein has stated that the company exports marijuana to Germany and intends on building growing facilities in Israel and Australia. This is likely to be a contributing factor in how the company was approved to trade on the Nasdaq as Cronus operates within the constraints of the law. Medical marijuana is completely legal in Canada and the Canadian government plans to legalize it for recreational use as well this year. Gorenstein has stated that when this occurs, he plans to manufacture and sell recreational marijuana as well.
A Legitimate Industry in the U.S.
Marijuana remains illegal at a federal level in the U.S. However, 29 states have legalized the plant for medical use and 8 states have legalized it for recreational use. According to a report released by Arcview Market Research, the country spent $9.2 billion on legal marijuana last year and is expected to be spending approximately $47 billion a year come 2027. The numbers indicate that marijuana is a legitimate industry that is here to stay. In states where it has become legal, it has contributed greatly to the economy, inspiring other states to follow suit.
Will Cronus Ever Come to the U.S.?
While Cronus itself has no tie to the U.S. market at this point in time, Gorenstein has stated that should the law change and prohibition end, he would bring Cronus to the states. He stated his intention on having marijuana become known as a legitimate form of medication with the ability to help many people. He told Business Insider that when people think of marijuana companies, they think “some guy in their basement with a few lights on and pit bulls outside. We want to show that we treat cannabis like real medicine. We don’t believe cannabis is a commodity.”
Cronus as a company is the sole owner of marijuana cultivation and distribution brands Peace Naturals and Original BC. It also has a share in Whistler Medical Marijuana Company. It was founded in 2013 with an intention of changing the public perception of the plant. Cronus sells a variety of marijuana flower and oils in varying strains and strengths and has even developed their own strains to suit various customer needs. It has been paving the way forward and intends on continuing to do this into the future. As the first marijuana company to appear on the stock market, it has certainly made a splash across the globe.