Cronos Group Inc (NASDAQ:CRON, TSX:CRON) Thursday confirmed it is in talks with potential buyers interested in purchasing the Toronto-based global cannabinoid company, which includes US-based Curaleaf Holdings Inc, Reuters reported.
Cronos, which is backed by cigarette maker Altria Group Inc, stated that it is in the initial stages of reviewing the indications of interest while cautioning there’s no assurance that any agreement or transaction will result.
During its most recently reported quarter (1Q 2023), Cronos saw its net loss improve to $19.3 million from a $32.7 million deficit a year earlier, while its net revenue declined 20% year over year to $20.1 million.
The company ended the period with total cash, including short-term investments, of about $836.43 million, as of March 31, 2023.
Cronos also noted that it is targeting to be cash flow positive in 2024, with planned cash operating expense savings of $10 to $20 million.
Altria owns a 41% stake in Cronos after investing $1.8 billion in the company in 2019.
US-listed shares of Cronos Group closed 4% lower at $1.88 on Thursday after surging as much as 25% on the news.
Contact Sean at sean@proactiveinvestors.com