On Thursday, Cronos Group Inc. (Nasdaq: CRON) announced it was on the shelf for any potential buyers, after rumors arose that it was in negotiations with Curaleaf Holdings Inc. (CSE: CURA). Curaleaf responded to the news only to say, “The Company’s policy is to refrain from commenting on market rumors. The Company does not intend to make further comment unless required by law.”
Cronos stated that it has received a number of unsolicited indications of interest from third parties, each regarding a potential transaction involving Cronos and the third party. The company also said that it was working with a financial adviser to review the indications of interest.
Cronos said it was in the initial stages of that review, and there can be no assurance that any agreement or transaction will result therefrom.
Cronos Sales Fall
In May, Green Market Report wrote that Cronos reported net revenue of $20.1 million for the first quarter of 2023, down $4.9 million from the first quarter of 2022. The main reason for the drop was fewer cannabis flower sales in markets outside the U.S. and also some loss in the American market.
Cronos made a total profit of $2.4 million in the first quarter, which was $4.5 million less than the first quarter of last year. The reasons were the same as the drop in revenue – fewer sales across markets. The only silver lining was that they sold more cannabis extract in Canada.
At the time, Cronos said it anticipated net revenue for the full year 2023 to be $100 million-$110 million. Additionally, the company expects to achieve the high end of the previously identified $10 million-$20 million in operating expense savings for 2023.
Cash flow for the last nine months of fiscal year 2023 is expected to drop less than $25 million, with the company expecting to be cash flow positive in 2024.