US Cannabis Company Signs Deal With Canadian Pot Grower
Lots of interesting cross-border connections in pot stocks lately!
The most recent one, as reported by Michael Larkin, is a partnership between US pot company Cura (CURA) and Canadian company Cronos Group (CRON).
In the 5 year agreement, Cronos will supply the Canadian arm of Cura with over 44,000 pounds of cannabis every year. Cura will use these supplies at a new plant in British Columbia to create cannabis oil products for the Canadian market and as a foothold for global supply.
How can investors win with this information?
- Watch for more of these cross-border agreements where restricted non-Canadian companies are connecting with Canadian manufacturers.
- Mark your calendar for 5 years from now and consider whether these two companies will renew their agreement.
- Dig into the data to find out where Cura will build its Canadian facility and see if that is an angle to invest in a related field.
- Pay attention to national markets that look to Cura (and ultimately Cronos) for supply. As pot laws change around the world, we may see an increase in demand.
- Don’t forget distribution! Think about how Cura will send out its cannabis oil product to Canadians and global customers.
