Cronos Group Inc (NASDAQ:CRON) steps up efforts to offer cannabis experience to the users in the form of vapor. The company opened an R&D Center – Cronos Device Labs in Israel to develop new vaporizer devices and offer enhanced cannabis experience to the needy.
The new R&D center expands the footprint of Cronos and puts in a leadership position on the world stage in the production of next generation vaporizer devices. A team of 23 members comprising electrical, mechanical, and software engineers and product designers and formulation/ analytical scientists are posted at this advanced R&D Center. The new product offerings help to deliver tailored cannabinoid vapor experience to the users.
Vapor gained popularity among the population. It makes Cronos a clear winner in the cannabis vapor technology. CEO, President and Chairman of Cronos, Mike Gorenstein said the inauguration of new R&D Center in Israel is a vital step in the innovation of cannabinoids. It drives the long-term success for the company and improves shareholder value while helping to deliver a quality experience to the users.
General Manager of Cronos Labs, Arye Weigensberg said the vaporization space is growing at a fast pace. Consumers are looking at this innovative method to enhance cannabinoid experience. However, few options are available for the consumers in this space and it is still in the infant stage. The company’s strategy is to develop innovative formulations and vaporizers and provide full-blown experience of cannabinoid to the consumers.
120% increase in revenues in Q1
Cronos has posted robust revenues of $6.5 million in Q1 2019, an increase of 120% from Q1 2018. The adult use cannabis mainly cannabis oil has contributed to the considerable increase in revenues. The sales of adult use cannabis have increased from 501 kilograms in Q1 2018 to 1,111 kilograms in Q1 2019.
Altria Group Invests $2.4 billion in Cronos
Altria Group Inc. has invested $2.4 billion in Cronos in March 2019. It has got voting interest of 45% in Cronos for the investment. The company also received warrants that allow acquiring additional 10% stake in Cronos in the next 4 years. Cronos will use the funds for commercialization and product development efforts.