Shares in Cronos Group Inc. (NASDAQ:CRON) slumped in early trade after the Canadian cannabis company reported a net loss in the first quarter, despite seeing a more-than fivefold increase in quarterly sales.
While Cronos reported a first-quarter loss of $0.01 per share on revenue of US$2.3mln, its sales came to US$2.9mln, up from US$0.5mln in the year-ago quarter. No analysts currently cover the stock.
Since last November, when Health Canada approved Cronos’s new extraction laboratory, the group has ramped up production of its strain-specific cannabis oils which are proving popular. In the first quarter, sales of cannabis oils comprised close to a third of its revenue related to Canadian medical cannabis products.
Last February, Cronos took a 50% equity stake in Cronos Australia to collaborate on the research, production, manufacture and distribution of medical cannabis. Cronos Australia plans to build a 20,000 square foot indoor facility which is set to produce up to 2,000 kilograms of cannabis each year.
That same month, Cronos became the first licensed cannabis producer to list on a prominent stock exchange in the United States.
In early trade, Cronos shares shed 7% to US$6.08.