Canadian marijuana producer Cronos Group announced a cross-border partnership with California-based cannabis retailer MedMen on Monday, sending shares skyrocketing.
Cronos Group Shares closed up more than 11 percent on-the-day.
“We want to change the perception of cannabis worldwide, in addition to bring This particular to the mainstream,” Cronos Group CEO Mike Gorenstein said.
“This particular was truly clear MedMen offered, by far, the best retail experience. We wanted to make sure we could bring in which to Canada,” he added.
MedMen Canada, as the joint venture will be called, will be a brand new jointly managed company in which will develop brand new, branded products in addition to open stores across Canada.
The venture will leverage Cronos Group’s Canadian expertise in addition to product in addition to MedMen’s scalable branding, technology in addition to retail experience.
“MedMen Canada will give us entry into an important emerging market for adult use in addition to broaden our exposure worldwide,” MedMen CEO in addition to Co-founder Adam Bierman said in a statement.
“I think This particular will be a milestone for the industry. You have an American in addition to Canadian company with track records in addition to resources to execute This particular venture — a meeting of giants,” said MedMen spokesperson Daniel Yi.
“This particular speaks to the larger movement in mainstreaming marijuana in addition to This particular shows in which This particular will be global movement,” he added.
Furthermore, Gorenstein looks at the partnership with MedMen as one in which could potentially prepare Cronos Group for a future from the U.S. market.
“This particular will be the beginning – we look at This particular as a long term relationship,” Gorenstein said.
MedMen, one of the largest cannabis retailers in California, has facilities in California, Nevada in addition to brand new York. MedMen in January announced plans to list on the Canadian Securities Exchange as soon as April 15.
Cronos Group owns medical marijuana growing in addition to distribution operations in which serve Australian, Canadian, German in addition to Israeli markets. In February, Cronos Group became the first “pure play” cannabis company to list on a major U.S. exchange.
Cronos Group shares are up 13.2 percent year-to-date in addition to more than 300 percent from the past 12 months.