Cronos Group, Analyst Respond To Citron’s Short Report
Wayne Duggan, 31 August 2018
Citron’s Andrew Left said Thursday morning that Cronos’ agreements are so small that they wouldn’t even come close to justifying the huge gains in the company’s market cap. Left said Cronos lags its Canadian cannabis peers in sales, trades at a steep premium to Canopy Growth Corp CGC 0.42% (which has a beverage deal in place), has a history of product recalls, has no U.S. business and is spending practically nothing on research and development.
“When looking at Cronos relative to other cannabis stocks that have yet to receive a ‘beverage deal,’ Cronos’ sky high valuation looks completely out of whack with fundamentals,” Left said.
