Canadian cannabis producer Cronos Group reviewing sale options

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Cronos Group has received a number of expressions of interest about a possible sale and is reviewing those offers, the Toronto-based cannabis producer said.

“Cronos is in the initial stages of reviewing these indications of interest, and there can be no assurance that any agreement or transaction will result therefrom,” the company said in a news release.

Reuters reported Thursday that Cronos is exploring a potential sale.

Cronos is currently working with a financial adviser to handle the expressions of interest from other companies, according to the news agency.

Reuters said U.S.-based multistate operator Curaleaf Holdings was among those parties.

Curaleaf, headquartered in Wakefield, Massachusetts, said in a statement that it will “… refrain from commenting on market rumors. The Company does not intend to make further comment unless required by law.”

Virginia-based Altria Group, one of the world’s largest tobacco producers, owns 41% of Cronos’ shares.

Cronos, whose shares trade as CRON on the Nasdaq and Toronto Stock Exchange, has struggled to find its footing in the Canadian recreational cannabis market.

In a filing with the U.S. Securities and Exchange Commission, the company acknowledged it had “incurred significant losses” in recent years and reported negative operating cash flow for five consecutive fiscal years.

Cronos reported a net loss of $168.7 million (224 million Canadian dollars) in 2022 and $397.2 million in 2021.

The company had 4.5% of Canada’s recreational cannabis sales as of May, according to data from HiFyre.

HiFyre tracks sales in British Columbia, Alberta, Saskatchewan and Ontario – which is about three-quarters of the Canadian market.