SEVERE WX : High Wind Warning - Wind Advisory - Winter Weather Advisory View Alerts
STREAMING NOW: Watch Now

Cronos, a marijuana producer, starts trading on the Nasdaq

Canadian marijuana producer Cronos Group started trading on the Nasdaq on Tuesday, marking a big step for the cannabi...

Posted: Feb 28, 2018 7:17 AM
Updated: Feb 28, 2018 7:17 AM

Canadian marijuana producer Cronos Group started trading on the Nasdaq on Tuesday, marking a big step for the cannabis industry.

Cronos is the first pot producer and seller to trade on Wall Street, though other companies with indirect relations to cannabis are trading.

"We're the only pure play marijuana company" to be traded on a U.S. exchange, Cronos CEO Mike Gorenstein told CNN.

Analysts called the development a milestone for both Toronto-based Cronos and the entire cannabis industry.

"We imagine the SEC would have gone through a very thorough review/vetting process before allowing a cannabis company to list on a major U.S. exchange," Vahan Ajamian, an analyst for Beacon Securities, wrote in a note to investors.

Cronos is only involved with countries that do not have a federal ban on marijuana, like Israel, Australia, Germany and Canada, and that probably helped them get approved for the Nasdaq, he said.

Gorenstein said that Cronos exports marijuana to Germany, and is building facilities to grow cannabis in Australia and Israel.

Cronos shares dropped more than 2% on their first day. "Like with any new asset class there's certainly a lot of volatility," said Gorenstein, noting that the stock jumped 10% on the Toronto exchange on Monday, and then dipped 2% on Tuesday.

Related: Canada could make billions from legal pot

Ajamian said the Nasdaq launch is a big deal for Wall Street because "it alerts the U.S. investors that there's a federally legal sector [for marijuana] they can invest in."

Some investors already have. Constellation Brands of New York, an alcohol beverage company with 76 brands including Corona, paid $190 million last year for a 10% stake in Canopy Growth Corp., a Canadian cannabis producer.

Canada is expected to legalize the retail sale of recreational marijuana in August. Gorenstein said his company will produce recreational marijuana when that happens.

Cronos isn't the only pot-related company to trade on the Nasdaq. The British GW Pharmaceutical has a cannabidiol treatment for epilepsy, and there are several other pot-related stocks, like Innovative Industrial Properties, a real estate developer and lessor to pot farmers.

Recreational marijuana is legal in 9 U.S. states and also Washington, D.C., and medical marijuana is legal in 30 states. It's prohibited by the federal government.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 154554

Reported Deaths: 2204
CountyCasesDeaths
Multnomah31785528
Washington21060212
Marion18335285
Clackamas13310175
Lane10172126
Jackson8299111
Umatilla763181
Deschutes591859
Yamhill375964
Linn356556
Malheur334358
Polk302942
Klamath277455
Douglas242853
Benton231816
Josephine231649
Jefferson195028
Coos142519
Union127519
Columbia124321
Wasco122026
Lincoln112820
Hood River106329
Morrow104414
Clatsop7756
Crook77518
Baker6487
Curry4166
Tillamook4122
Lake3746
Harney2726
Grant2221
Wallowa1424
Gilliam531
Sherman530
Wheeler221
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 3554629

Reported Deaths: 51395
CountyCasesDeaths
Los Angeles118754221106
Riverside2891853749
San Bernardino2853342673
Orange2603483889
San Diego2589823260
Santa Clara1098411765
Kern102627811
Fresno947941412
Sacramento929441464
Alameda800881224
Ventura77238834
San Joaquin665691082
Contra Costa62164674
Stanislaus55775944
Tulare47784746
Monterey42138327
San Mateo38763515
San Francisco34061398
Santa Barbara31763407
Solano29968164
Merced28915395
Sonoma27954298
Imperial26843589
Kings21951218
Placer19713231
San Luis Obispo19612227
Madera15390209
Santa Cruz14588183
Marin13136197
Yolo12760185
Shasta10944174
Butte10915160
El Dorado9095100
Napa897668
Sutter884597
San Benito574359
Yuba573336
Lassen560119
Tehama508152
Tuolumne394659
Nevada393274
Mendocino379643
Amador344441
Humboldt316033
Lake313440
Glenn221023
Colusa212813
Calaveras190547
Siskiyou174014
Inyo128736
Mono12114
Del Norte9875
Plumas6536
Modoc4524
Mariposa3947
Trinity3675
Sierra990
Alpine810
Unassigned00
Medford
Cloudy
42° wxIcon
Hi: 43° Lo: 32°
Feels Like: 42°
Brookings
Cloudy
42° wxIcon
Hi: 44° Lo: 34°
Feels Like: 42°
Medford
Cloudy
42° wxIcon
Hi: 24° Lo: 15°
Feels Like: 42°
Medford
Cloudy
41° wxIcon
Hi: 44° Lo: 31°
Feels Like: 38°
Klamath Falls
Mostly Cloudy
31° wxIcon
Hi: 34° Lo: 21°
Feels Like: °
Wetter and windy Friday
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events