Business
Cronos Group Files Q2 2017 Financial Results and Provides Operational Update
Cronos Group Files Q2 2017 Financial Results and Provides Operational Update Canad...
About this update from Cronos Group Inc
[{"type":"text","content":"\n\n\n\nCronos Group Files Q2 2017 Financial Results and Provides Operational Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Aug. 28, 2017\n\n\n\nTORONTO, Aug. 28, 2017 /CNW/ - Cronos Group Inc. (TSXV:MJN) (OTC: PRMCF) (\"Cronos\" or the \"Company\") is pleased to report the financial results and accompanying management discussion and analysis for the quarter ending June 30, 2017; copies are available on the Company's website (www.thecronosgroup.com) and have been filed with SEDAR (www.sedar.com). \n\n\n \n \n\n \nIn Q2, Cronos remained focused on executing against the Company's operational strategy, which resulted in a 25% increase in sales quarter over quarter: $643k in Q2 vs $514k in Q1. Overall, the quarter produced $174,879 in positive net income from operations with a realized $1.3M gain in net income from non-core investments.\n\nDomestic sales contributed 77% to the topline in the quarter. During the period, the Company commanded a domestic average selling price of $9.50 per gram, which reflected the improvement in product quality across both Peace Naturals Project Inc. (\"Peace\") and In the Zone Produce Ltd. (\"ITZ\"). \n\nCost of Goods Sold (\"COGS\") continued to decline to $2.18 per gram in Q2 following multiple operational upgrades from Q1. Of the three existing production facilities at Peace, Building Two (\"B2\") was the only Peace facility where product was harvested in the quarter. The other facilities were undergoing significant upgrades. Management expects COGS to continue to decline with scale as the other two facilities ramp up production.\n\nDuring the quarter, Company repaid a $4M mortgage to Romspen. Subsequently Romspen agreed to provide a $40 million senior secured facility to Cronos on August 24th that will fund ongoing expansion at Peace. \n\nAdditionally, during Q2, international sales grew by 27% quarter over quarter.  Towards the end of Q2, demand in Germany increased substantially following German Parliament's decision to implement health insurance coverage for eligible pat...