Cronos (CRON) 1 Mar 222021 Q4 Earnings call transcript

Good morning. My name is Mayra and I’ll be your conference operator today. I would like to welcome everyone to Cronos Group’s 2021 Fourth Quarter and Full Year Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the call over to Shayne Laidlaw, Investor Relations. ahead. go please Sir,

and be And information, Group’s for full-year news remarks, Mike XXXX Today, filed Executive our business Mayra. Bob our to and Madore; and EDGAR on financial us a these review performance. our President by on as joined Cronos fourth as I’m Kurt results thank you, Schmidt; prepared release joining posted This CFO, the you Chairman, today and well CEO, Thank quarter Cronos also under Gorenstein. issued this website financial will our SEDAR announcing Group Investor morning, are our profiles. which Relations. and

statements in result regulatory forward-looking and to you that qualified filings, assumptions are subject statements, I those and the during to which are annual a based Company’s to call discussion are Before included as including the that release entirety. uncertainties from risks materially results would projected made risk forward-looking their report including like conference factors actual Kurt, the in of that call statements XX-K, this could most that during cautionary our the differ to cause remind over on this turn and include I will earnings any by Form factors in call recent statements in Company’s on described forward-looking the

Reconciliations by business non-GAAP in Principles to including discussed assist not recognized measures. measures forecasting, measures financial are referred that under planning, their non-GAAP believe Securities during addition, these resources. be Commission these Generally financial call, non-GAAP and to this Accepted U.S. may In of evaluating we conducting earnings furnished issuers. measures are allocating performance, be We and from website, note by management as which Accounting of that GAAP measures certain locations. the like and our Exchange comparable not I’d also included our the respective section to thecronosgroup.com. are in the in measures today SEC, reported press non-GAAP comparable our may remote These press to room release measures our is available used to call most the other

may there you your in minor crosstalk or issues call. such, for As delays, patience during be and We this brief understanding. thank advance technical

now will Cronos into question-and-answer will Kurt President that, Schmidt. and I’ll a over With session. then and it move prepared we pass We Group’s remarks make to CEO,

Thank We your second you, and the two joining for time weeks. and Shayne, in good about morning, appreciate everyone. patience us for

business We pleased and our XXXX quarter year are fourth share updates and you. to full with results

position realignment February our the on the distinct business touched the products I on to drive agility pillars. I at realignment profitable in realignment and long-term puts this sustainable of during we Cronos As and undertaking our view focal started point. by XXth, This to a call three year growth.

First, common we have the removing under functions redundancy leadership. centralizing realign and organization,

our and asset-light reducing continuing are we complexity Second, model.

the to As of exit minute. that, a part on in decided I’ll Campus. Peace Naturals elaborate plans more we’ve these

in know Campus the like this this growth. went are we second in the morning, analysis our Extensive into we that Stayner, also brought to our to a realignment continuing operating to we $XX pillars while million XXXX. ensure expected across decision development exiting And this spoke primarily know mean also we ago, pricing When perform and transition further implemented provide on in and product initiative, on have optimization you expenses We’re our announced a reduction release third to reviews Cronos’ million is and to And weeks finally, our scenarios right reduce decision. we’d Naturals earnings approximately updates help two the initiative. cost products. by we of first brands pillar. we change, Ontario. long-term will we Today, $XX This and Peace

that to and brands operate always has aligns to vision. an R&D. asset-light business, on goal focused This Our us been transition

around and have can cultivation our would which industry level joint in with specialists confident that are supply why and maintained chain the on now implement We where as the partnerships Canada maturity at offers. feel scale shift building world that we this a ventures agricultural focused matures, to is the large industry approach. best-in-class always We we

have on aided having supply manufacturing We consistently and manufacturers a by chain, third-party and needs. supplement our diverse producers to focused contract cultivation

been order many In years, those addition to GrowCo partner, in execute building capabilities with to this relationships developing Cronos over we JV our move. have

become enable R&D To for the planned to exit importance by transition. our top priorities Campus XXXX the flower the their continue with Cronos phased is profitability. execution, premium transition throughout our cultivation, know important improved ensure supply. are pleased the reduction of downstream Protecting for are will our growth processing go-forward very and and of end We top of increasingly utmost with line continued and strategy, goal will to component an which with We operate their a XXXX. has Peace smooth activities capabilities biomass they on efficient of momentum Naturals and the

Canada addition, on In maintaining license We facility with a Canadian intend relationships from are our GrowCo’s sales to customers. at Health obtain that ensure our to focused we continuity.

on bringing initiatives across our manage as our to be possible, as Regarding complexities various while eye There’ll on and continue moving innovative many our close our as this and market. R&D to we’re revenue But facilities. products to transition. planned during growing efforts, staying pieces timeline focused maintaining will all

walk some those out to throughout full to to year this our transition Campus and grateful XXXX. the business in through continue the facility quarter seamless to fourth Stayner contributions of now turn Group. at to I Naturals associates appreciate year. highlights we are work want and our a to Cronos you for their hard provide Peace our associates and And who We work

SOURZ note Spinach making win were starting brand one flavors top to spot. continues nationally, year our in results. and it’s in wins, consumer Blue have shine with Raspberry by category important continued category. all in its and gummies put to also quarter, through strengthen challenges, by our is its fundamental SOURZ All Spinach had to share we win market this the the the our work fourth the The successful in the edibles While brands XX holds number to In into market. Ontario, the the double-digit Canadian in within three the Spinach

share flower high-single-digits. in market strength in Spinach category is and the genetics. a result the breeding category work the the in flower years The R&D in ended for quarter Our of of

Importantly, we their lot genetics the GrowCo look with elevate help have time. them to continuing shared portfolio a to over of forward flower and

and within they of trends. our although brands our more is the sub XXXX, to products our variety common which in category. products We’ll Spinach Spinach first is of. utilizing In The to to edibles launched the bring wide to of cannabinoids, possible Spinach enhanced products formats. like are even launched base brand and other a right. alongside a thought cultured launch, making cannabinoids, with we and deliver consumers unique gummy, they of a with designed under continue made the inroads FEELZ, early, innovation also fundamentals significant getting testament our October success rare the Chill We Bliss CBG date proprietary And is CBD haven’t happy cannabinoid THC blends experiences, to products invest and brand, products we the our through and FEELZ, cultured want

market see market the as utilize to learnings they Spinach, other emerge. to success waiting markets while Canadian and with in our ourselves in starting key We’re innovation

match of to energy by focusing primary rare organization the restructure elevating be our our will products. our cannabinoids on go-forward utilizing towards we strategy, and adult-use focus the brands As

extensive our We of development have always products adult-use used initiatives. most in but insights fine in evolution consumer place region all learn consumers focus the as of and innovation with in an to We States on consumer operate about a we Canada, the the those operate today. bring solutions to towards in product the Canadian work adult-use conduct market tune United in continue United our regions markets we preferences, while States. a eye creating more turnkey remains great we within to the we to

Turning to Israel.

We XXXX. continue business. in Naturals selling We to Peace delighted medical of of patients second be medical our the quarter participating with started through the brand pharmacies to results our

Total After recognized cannabis most with to year nearly as meeting a that for count increased survey to long all last XX% a medical the in naming have the market. Israel pharmacies lot to is same We forward have demands to patient cannabis. sell in our line. we runway approximately growth. recent And pharmacies conducted the has expand Israel, more also up by continued period brand increased Naturals this Cannabis will we towards Peace we substantially on versus our look to patient distribution work which participating Magazine XXX,XXX, continue come as pharmacies in to

population of cannabis and world’s infrastructure. product Canada’s With position in and market. with time American growth in Given local product has market, Israeli of border medical reminds market over started to a million outpacing well Israel’s Israeli market highest and X stringent we manufacturing given days associated our illicit leader our a cannabis Israel is of Unlike take into the we usage the less and for to boasts dive the North some the there. rates. one we markets, Israel business, ourselves competitive as much growth how people, rapid portfolio, established the in stigma positioned team, strong of Israeli the to footprint, early medical away. us just branded The with the the controls market very demand quickly security are supply succeed fading more

our flexibility most with a of utilizing Three, will designed leader potential, our the that will belief spend strategies capital rare Star, on XXXX, by resources significant platform create to deliver Cronos’ approach for our investing products. time portfolio the to on energy believe growth maintaining want a managing the business, one, ensure towards external business that by organization brands to Four, incremental evaluate aligned allocation market. to supported the new leveraging conclude forward diligently to we cannabinoids position elevating realign focusing the our capitalize move and each by processes focused to and are deliver our differentiation. with primary maintain to U.S. look initiatives strategic only top which I to that sustainable focus brands, be returns. on In add entry products accelerate across our and focusing we will global as the North drive opportunities and selling of all our our disciplined group our on internal by as four in core and rare to priorities, keep robust vision brand’s by go-forward core innovation our As while provide U.S. products opportunities our a of that driving an we Cronos contribute growth. and our the cannabinoids value Two, capital to manufacturing we on adult-use vision. match strategy, will market outlining

the that CFO, up confident a We will Madore. in we’ve pass it of and actions of this, like lot but feel the set have I ahead would Bob for business that, our With to us our outlined work success today I to improve long-term.

Thanks good Kurt, morning, and everyone.

financial allow further planned into our Peace me exit Before to getting results, our details provide from Naturals Campus. on

Company’s from the As impairment million Company’s the a Peace result assets incurred the quarter planned on Campus, a the long-lived in $XXX.X of fourth of Naturals exit charge XXXX. noncash

with as In charges to XXXX. costs, all be incur well $X.X Company expected other second and of which are termination These impact contract and exit, the related planned which primarily of other the relocation as incurred in of half termination expects addition, severance, employee-related the benefits, costs, connection to ROW segment. charges include such approximately as million the in

of Group the In looks Company’s downstream addition, capabilities. the and leveraging operations. modernize of anticipates with million approximately intention premium capabilities capital profitability GrowCo’s improve technology Canadian expenditures information in to efficient processing, build $X.X cultivation the forward Cronos distribution to and Company systems flower to

In network cultivation further GrowCo, will needs. addition maintain Cronos its manufacturing of with third-party processors to to and to venture a Group licensed leveraging joint continue supplement

on and results we of financial Now, XXXX, XX% consolidated Israel. million basis, the the getting increased world revenue performance the highlighted $XX.X In a in by year-over-year into filed to with Canada rest strong segment today.

$X.X strategy increased growth the segment net revenue go-forward year-over-year. slower segment realign committed U.S., in of in representing on Our year-over-year to increase recorded a In to million, rest XX% of a U.S. our light million. The world to United the we’re improving $XX.X rightsizing X% with focus the segment profitability. States it XXXX of with

Consolidated growth $XX.X Now, in year-over-year of XX% net results. by prior year to XXXX fourth driven Revenue reported of fourth $XX.X the gross the versus of quarter consolidated write XXXX Company downs increase turning of The quarter in by a million, of the negative from increased million sales quarter fourth primarily year a revenue million, year the and and improvement improvement decrease the was XXXX a Canadian quarter profit $XX.X from fourth the of The decline Consolidated driven of inventory sales EBITDA quarter the in $XX.X development gross market in was representing in fourth world increased was for improvement and primarily and prior segment. continued prior improvement versus driven fourth improvement The the million adult-use marketing, expenses. medical was a in from million, quarter primarily profit was research growth representing the and XXXX. gross in rest in $X.X market. a by of the XXXX. profit XXXX adjusted the and Israeli period. the

both, of in extracts world was the a other in segment reduction for year-over-year quarter research XX% reporting XXXX The rest of prior market, was profit primarily inventory in product Canadian from adult-use the quarter of million, an Turning carries world EBITDA increase driven versus Gross the fourth the $XX.X than downs, gross market. million, Adjusted Israeli volume of write increase profit the In expenses. an our segments. the by Canada the higher $XX.X the the world improvement and in improvement the fourth year of growth net sales in decrease year primarily in XXXX profit XXXX. segment, development fourth a flower the a categories. $XX.X from million, improvement of for from million prior was and representing in quarter to versus by XXXX by fourth medical prior revenue growth $XX.X and year and quarter the for reported million period. extracts The categories a fourth XXXX. was in gross rest improvement negative we the driven representing improvement a the a of which rest in driven Revenue in segment $X.X of the sales was of primarily of quarter cannabis in

period. We of reported in the to quarter approximately from competitive to fourth year XX% U.S. Turning decline length was We U.S. remain to intend to updates of and the business business general quarter U.S. reflect ago administrative for where fourth at and of segment fourth an XXXX. of $X.X of CBD negative and [Technical profit it a year-over-year Gross a inventory The quarter primarily net $X.X XXXX. of valuation of not Difficulty] optimization, the Adjusted the to strategic improvement mind, production and the million, in modification due fourth the that in year-over-year the two marketing, U.S. of to you quarter The sales time. quarter decrease appropriate the segment. for is this the distribution decline value. the $X.X rationalization want of at be. costs segment XXXX the including net improvement potential XXXX for The million, realizable pressures. for increased by review was EBITDA was reduction prior due revenue spoke negative the $X.X weeks and adjustments with million, from channels top driven from $X.X price The XXXX versus a material was we we volume representing SKU million the representing share decline fourth expenses. increased and million

in expenditures $XX billion were third million to The approximately sheet. the that on down short-term implementation our the priorities. across manner, investments, turning strategic from deploying across the committed quarter $X.X focus by the Capital We expenditures ways down year-over-year, and our Company million with capital and enterprise only Capital with $X which is in to reduced priorities. for driven planning XXXX. balance strategic remain and quarter align a facilities. cash our with approximately XX% resource in disciplined capital are quarter spending of spending global approximately Now improvements ended the

best committed an update that to quarter. reporting. efforts are Lastly, material I’d our company financial weakness instituting for practices in relation like to disclosed to provide with We you a the remediation as we on last

Our over XXXX. plan from diligently of are initiated to audit a the in has management, which working we committee, with course oversight phase the

verification disclosed material to been back previously In state remediated. turn addition, it to inventory related weaknesses happy that, With Kurt. I’ll the to that I’m have

results. us today that Bob. are to the strategy despite on not with overshadowing you, you It’s that and want starting all that is our Thank see up lost What results. challenges recent leave to I show execution our you our of are in

building demonstrated a are through We market brand Canada great have in share gains. Spinach and sustainable

win We hard in growth market. We medical a to are Israel, worked seeing incredible it. robust

decisions rapidly organization and efficiencies We realign business making are to markets. and our to with profitably quickly changing our move and improve help

science a the rare cannabinoid we’re first the market in resonates breakthrough using that to technology. release product cannabinoids to cultured are a with We way And company and leading consumers. company

rising line right the the and open challenges that, us. on path, We’re the in of I’ll questions. With for to we’re front

have [Operator Carter the first Andrew from question our comes Instructions] We line of from Stifel.

morning. Hey. Good Thanks.

I to option some First of slowing And because is the save creating funds? wanted the have, exit think contemplated an also to to I kind of of would of like long Stayner kind of -- down at kind terms the being in would momentum. thing risk put how redundancies you ask has redundancies of revenue want not the of

us help just could with you maybe Thanks. that? So

Yes. bearing the belief Again, while. initiative quite that the a we’re idea, going This lot initially, That’s This our why whole JV been we agricultural out. cultivation GrowCo sector. whole was Kurt. move that has for will the GrowCo all towards created is about the and

want. follow-up, through and we’ve So, hit we start-up through milestone every construction, through

that pleased at is now. we’re where while. So, right with we’re And ongoing for very a

in supply chain, is cannabis for redundancies move. but We’re supply GrowCo that very good, this as we high have of quality we enough well upfront remarks our and And chain. this out about right time talked the the the feel delivering in priced we

on out. in of revenue kind speaking kind it’s edibles the brand’s a been Spinach of then, second, momentum. the the And stood just brand, build quarter, great Great really for

Just a February quarter? Spinach. data a Anything released step this you as It’s back back, morning. here seeing for seasonality? first shipments? calendar could and step taken kind adult-use -- you’re that see the of Is that of revenue kind the Canadian And the Thanks. kind do headset the sequentially in take a of edible a of kind in both reduced

Yes.

some the I the a positive. back in quarter momentum came think a temporarily bit the in little that the second of the growing seeing and think created in first of we’re of some be think, getting it’s I But back part overall quarter, to again, seasonality first COVID I world’s And disruption. to here. normal, quarter quite

So, itself. we think that’ll right

confident about the side. Spinach really consumer on the way is developing We’re

Our of Raymond from question the next Sarugaser line from comes Rahul James.

Hi there. My one the effect for Peace first This have this Michael Sarugaser morning. this Kurt, on I site, guess. Shayne. from one I is and Bob, is of morning, Naturals Rahul Good the question. sort Freeman downstream wonder exit of implications exit top you for to structure I can move, implications with this through the be facilities cost on and on broader as us if notch then go moving describe XXXX. on implications through you on headcount your R&D just where might

That’s to three things Okay. there. unpack

be our as many of fashion that size committed we’re in And shutdown equally how and The the Stayner move into treating an go including do way. won’t have we’re we the we’ve have. we it -- undoubtedly, first this quality this will No of go right we employees process. we there’ll But in changes effect the -- facility, really through But, the of a employees high ensuring reducing But, number planned the the that. really is this this headcount. we’re as about organization. I doubt facility, one exact

remember has the R&D on we already second chain multiple the there. it’s facility, have that The work R&D, across supply Winnipeg a facilities do works. to we one important

our into on We will this stuff some eventually GrowCo has R&D move scope. and no effect

And one winning Campus give heavy specific obviously decision, developing we’re this there’s no towards. So, was Peace talked margin see we we R&D to guidance. key as profitability heavy I are The a But, your going third the to on brands R&D. and about, business significant It’s have we’ll accretive Then around complexity making a profile and the we and business. innovation our margin think burden. effect. prove timelines driver real in overhead a the innovation no Naturals and obviously effect We and is about process. carries rares, opportunity don’t of believe the is driving our

So, structure, significant in a of cost with costs removing coupled that the -- and downstream million we between And will got to right, that to of lower which from there’s experts operating more both expand think dollar the and third by production efficient the our you GrowCo, in at phase profit, restructuring, and where million. quarter earnings gross processing are remember, opportunity during the costs the which couple call reduce percentage with we terms. announced cultivation, $XX our first $XX

brands, while we accretive and put clear a all our sustainable which of things, on these focus our on maintaining particularly rares, believe growth initiatives margin innovation, strong winning course, path, really So, is in us building important profitability, Spinach. very improve and two and

My the is in impairments quarter, XQ noticed, Ginkgo see license. appearing the for Bob. the related on exclusives perhaps beginning some again we And financials. follow-up those to third We

you way those if and specific Thanks. could licenses. them wonder relate to I the Ginkgo you’re unpack these perhaps valuing just impairments So,

Yes.

air. with don’t challenges any and history, method. won’t bigger history the a space relief the accounting you and from everybody future as Over rare rares. with history In the different It’s after projections I these exercise, an discounting time, the projection in for can the we the that development we developing the of royalty commercial very more are cannabinoids a rules type think the with developed in it, really and valuation has around under -- the -- heavily a of new opportunities, of rares little have handcuff in of additional you as these get a is bore indicative the the implication One space of kind these rules, but a projections, of going valuations growth valuation and royalty that -- just That milestones just really not commercializing of valuation perspective, you in rarefied from of where the perspective. experience limit that us. operational we level methodology, is put opportunities from

We already will think history and represents to we’ve more two what of that and visibility after completed. in better go milestones that help that have valuation market to that the We commercialization six exercise, but accounting we no we could implication. by what don’t. it to, means is worth, method an we what it sell a think if we It’s think to third-party, valuation just wanted it’s the we

question John comes line from CIBC. next Our the of Zamparo from

to us Can value, or purchasing approximately I that? discount you date paying remind are GrowCo. you to there is on JV? or you sales, what Are GrowCo? being of say either current supplied market the your wanted the QX fair from terms And what percent in can start of a QX embedded in by

Yes.

So, we really in XXXX. GrowCo started our initial purchases, actually

We’re a all demand our complete relatively requirements. small of amount, prior supply to Stayner our that could Stayner, and not facility

time, also just really is the up and which other X to and period our to third-party we GrowCo, fulfill for running biomass dry of needs. flower last to addition utilized been XX-month in So, cultivators

Hence, the what and it, obviously morning we of just much was efficient them. market bit out we GrowCo’s one on internally. already large that’s there. action the From we leverage kind a best costs but We think most this the like around moving quite efficient, of competitive a selected we in our agri based more of speaking, thought they’ve the announcement than the always to future felt for going were where Now, growers pricing to doing what we looking had, way that more pricing, just cost effective from perspective, and effective relatively sourcing it like lower ourselves -- GrowCo, to feel partners Stayner. be forward, success produce it’s are harvest in reason the and

we’re the opportunity. about So excited

think by back, you question And served to your be will Israeli over evolve. eventually take know how to continue to think if And like step you And and Cronos you time? time thoughts it but on supplies producers, is exposure country it domestic would entirely this I that second on some will then, I a you’ve shifts market how if get just market? got evolve wonder, when Israel, the when comes, market. that Will Canadian a my through

on it a depend Well, lot the of market Israel. regulatory will in

So, is of built a way, cultivation -- like we -- right have redundancy now again, we in. do as the we everything, our lot

our we from converse, on ourselves we with on So, joint cultivation and Canada, the buy our from third own produce import Israel. we from venture parties

So, we’re it and the certainly going is -- We driver well market that the to very grow resourced. feel and we we is up, to demand. able with biggest think develop. going fully to well to Demand continues grow as be are positioned be

in So, we’re in our position a very good mind.

comes Barclays. line question Jain the from from next of Gaurav Our

and XX% in of of You in is the be segment this a is million EBITDA have that reported the rest $XX loss quarter. that almost XX% U.S. world Would it fair segment? to loss assume

that you’re Could percentages I’m sentence, saying? sorry. last the repeat you

will the world million, segment million that will it be On approximately million $XX and this assume $XX of U.S. the rest the be is the loss of in segment? in fair to $X

level. EBITDA that at down break We losses Yes.

you have you years, I’m place. what you million U.S. your guess, is, and it is $XX couple trying over made business, of so, the of that that the I had rightsizing a get I would only commentary at say comment that number not I is business, on the How sales. the Sure. it? business fix mean, last still to times of the you’re right do

ahead, alignment the Kurt. of part -- go As strategic

we’re clearly, unhappy. Yes. Well,

still those still -- -- We’re strength there’s we brands. looking in at think strong

of the business. One going of things adult-use previously, we’re side to the said the be as focusing more, we is on

call, We’re weeks We which last the earnings that just at going the ago. leadership through now. two announced just was

So, we’re doing that.

brands, review. about. we’re resonate. We’re go again, still what still the they come right conclusions to there’s strength that said, still that’s in as forward. With those strategic the But doing we we’ll And

not we just to do We’ll get as ready announce that We’re anything. closer.

My if roughly is is, about million, next cap, your question market billion. net I $X look $X.X cash at

outside because spaces is that same think cannabis would weak. peers, with could do generate we the value you that of to have economic Cronos? billion think your businesses Like, of cannabis use how all and the struggling in pretty I $X everybody been you So, where you invest issue

outside you that would something at So, look business?

to and financial we that chime eye on are Mike he’s the focus we what let all an growing in -- investments strong acquisition. make in PharmaCann. Well, giving I’ll as potentially They announced that been the focused make confidence are LivWell, is right, they of Chairman, brands, Mike And the well, the good on those for have -- you’re focused has this strategically morning the reason U.S., U.S. kinds make a balance organically the to grow in and was have us. And why the the our us sheet in their we pretty want leading to ability A business. just announced the M&A. their invested because the It’s closed which we both, today example can we things on management their it. and actually been PharmaCann -- we of leading

And anything if balance a we of kind want that. to don’t can investments we sheet this. make. you add seeing I our to partnership with And this the is have know them. You’re with Mike,

think it we that The can we really ROI time. Sure. Thanks making is Kurt. globally a of over Yes. think good have way investments

Spinach adult-use SOURZ, to take the FEELZ markets like opens. products things in able up, So, open the line, as be cannabinoids, we’ll those as rare that

in can Canada take they you but head in at into and those transitioning those the with other Israel and brands, the Canada invested performance to U.S. top you look head as see how don’t brands U.S. Canadian with standalone, markets we things like Canada we So, open. as

partners infrastructure at see in U.S. or that in for that the markets, looking addition opportunities other brands or IP distribution In we

Our comes of Andrew Bond Jefferies. [ph] from the next from question line

our Bennett. Bond Hey. on line Andrew Thanks for Owen morning. the Good for taking questions.

So fourth deeper Israel, little Perhaps third get near-term. just seen strong we’ve on I digging and maybe Peace continue. quarter the we momentum how a bit stickiness some and brand. expectations into before with maybe Naturals closer it I to the wanted to but know on in touched there your might

thinking be in into thoughts about to advantaged Israel, wanted the get momentum LP on other look we we forward Thanks. how moving and just as Cronos So, should your be XXXX? versus selling how

we because We think have more talked come great brands, competitively and series so well. carrier. more The come of momentum. strong we cover great I advantaged, we all that medical a see patients into really have we doing cannabis, on, market, as think that segments continuing is We we’re is cover. to about, as which we pharmacies need the

As organization I brand highest the most, in ground. a rated were And the on as we said, have great the Israel. we

relationship, organization they’re in are job have own a the great in the marketing, sales customer we relationship we and terms -- So, of our doctor market. doing on ground,

with feel we And very serve on great about So, market. ability have the talked strong organization ground brands. to a we we the finally, our

the well we same Canada. of through ability we’ve use we market. venture, to and the serve the We have And are We the Canada. joint kind very placed parties what in used strategy do third in

the about rated, great placed the see focused the products. New and the in lot we in So, is but we’re which on on brands to all products start rated top only a us. of Naturals Peace anything and this Year market It’s of highly just momentum don’t it. well being see is prescribed And great great again, stopping our we think, building are we going a be not highly products,

from next Michael question Sandler. the comes from line Our of Lavery Piper

Thank little a late. you. Good joined morning. I

there? help can isn’t is there or with just an update give on And Altria? this operations, your repetitive. But, opportunities hope your I you relationship impact if how that -- how U.S. some Sorry. can

a in They is develop on as they’ve have again, us been Altria there. supporting the And, Company. we They’re at Board. represented investor in seats our business. great Well, the strategic Board

the As the is U.S. done we’ve things investments. one PharmaCann far the as of

from a example strength So, are independents the we have of our entire Board, both represented that’s the -- course great and Altria. that GGP is from of

And is the can brand how edibles, you also just an give doing? update on maybe FEELZ

is just We The talked fantastic. that. about Yes. Yes. brand going FEELZ

in Hifyre XXXX. As quoting quarter period. in data, keep fourth market double-digit we We continued share growth said, during the the we see edibles

in They’re portfolio, there’s top our data. SOURZ in XX, three you If according products the that LCS in line. look

well. product we’re cannabinoid-based way cannabinoids along the January. extremely in said, So, early progress, our but developing. with our first as October, with And and that’s the rare progress first launched under edibles, launched we That And really Spinach, are also THC. using which And we FEELZ pleased was CBG the rare we we launched is that, performing we -- -- CBG. done in

there our And you all participating. does for Thank conclude That questions. are today. further no for conference

now may You disconnect. Have day. a great