Cronos (CRON) 7 Nov 222022 Q3 Earnings call transcript

Good morning. My name is Chris, and I will be your conference operator today. I would like to welcome everyone to Cronos Group's 2022 Third Quarter 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. Chris, Cronos you and Group's you, today joining business ahead. Thank review to XXXX go and for thank us performance. Please third-quarter financial CEO, CFO, am Gorenstein; I joined our President, Today, by and Madore. Bob and our Chairman, Mike Cronos results morning, Group EDGAR SEDAR which financial our this profiles. on issued release filed our news and a announcing is This posted under website on well Investor the remarks prepared as as our information will be also Relations.

during cause statements our we and GAAP, over our to actual that to Mike, materials by forward-looking available earnings expectations me projected may results can turn make during available I actual from that the forward-looking materials about to in management's on could current measures statements the found the that statements. call non-GAAP are financial that expectations Before forward-looking those and also made and measures, materially website. in forward-looking earnings risks results call could to are refer in on any uncertainties including to website, are on U.S. remind non-GAAP cause let differ call. These to assumptions Factors from you this subject that in financial are are our based detailed reconciliations our their entirety. differ this SEC which are Information that be qualified filings and statements materially

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

on We've steps as within and start strategic our expense we by our the continue costs, good improve and realignment year. you've and our like allocation morning, taken working call been operating further. Shayne, capital everyone. processes today cut budgeting seen structure, to to Thanks, I'd refining to have discussing this

targeted and Cronos startup a million adapt our brands common we the investments reinforcing in borderless on growth our that in remain profitably focus to more initiatives. new open. products grow can $XX and they markets target that hit allocating ensure we're million $XX projects as efforts to expenses segments mentality, slimmer with right goal, new operating of to share funds approach continuous and XXXX. to a to cost across savings to help structure and cost Our Thanks track All on

milestone million. GrowCo loan, rate to reported and In industry-leading economic us. of balance significant we And to to these GrowCo investments, of approximately environment. take Canada, fields, via the ahead maximize to innovation details product is and portfolio combined for categories paramount of are now And markets our on progress chain. up revenue gummy will across up our can team, on the cannabinoids investments X with continued As Australia offerings uncertainty we launches. management we Balance at higher The and our and strategic short-term brand of best-in-class our CBN downstream expanded and investments focused this with of cultivation area categories, GrowCo and desire have with reminder, to remain cash footing rare to grow. for the products to flower GrowCo business to costs we of with the $XX us to cutting our is capabilities rare announced PharmaCann, pleased ongoing the third secured a our sheet, future. a consumers CMO other product is and of bake our with Cronos a $X.X continues in senior superior budgeting achievement growth we which continue at Having our $XXX receivables, a to launches unaudited we winning advantage quarter, has us providers. borderless enable through set product edible cannabinoids. product Further equity global believe balance and enter in new sheet in us categories and the year-to-date. To leveraging new complete potential differentiated progressing and million in look well a growth. A be Spinach sustainable to portfolio continue we in maintain cannabinoids firm process In We're our they significant open. and to be to as of 'XX, that most long-term key keenly portfolio new has repositioned the short-term we been of cash sharing customers. non-Cronos development for focus sheet benefits throughout on build-out to excited as repaying our pivotal finished preliminary build pleased its processing product opportunities vape recently be provide theme for performance more provide rare has with additional supply for expand of Cronos been our is products. the These decisions the development of packaging interest its for our strategic THCV, guided portion million many into Growth forward the approximately adapting balance utilizing with and approximately and loan a running, continue cash

the carbon processes is method is the fermentation impact fermentation of average indoors of clear. method the proprietary dramatically the of and striking which results sustainability were saving evaluated environmental This also innovative traditional cannabinoid impact growing an plant results and the methods. extraction XX.X%. lower the third-party The of production. These using fermentation quarter, footprint fermentation methods environmental footprint a show important percentage of results The of for their VERIFI cannabis we study, high, and as received advantage own

never young, to is technology it's in industry and future. contribute invest helps our early to While too a greener lead that

innovations that macro disruptions also fact To customers. we're challenging to is our and The a new driven a create way Canada, make Ontario able rare experiences to by blends us these profitable a growth. to of Despite disruptions, new unique products push us continued and Columbia, environmentally drive win-win to Cronos. our enabled in for environmental being supply with environment up smaller strive making it fermentation maintain leverage continuity proprietary customers friendly cannabinoids, at breakthrough to While impact, allows cannabinoids. and through provincial in we for for team make British while

achieved market The to Although dividends product XX-gram is in cheapest. selling for. Our winning category, retailers those dry carries September commentary flower sure profile pay that resulted QX on that and market shipping X products lower flower -- our once with into XX portfolio a from basis they up costs, in will with on flower impact that of the building the have when nationwide the on are last data. a #X a focus products financials. achieving important offering, SKU put flower cake be making It shelf nationally all points looking long efforts the of referencing in making up higher were XX-gram and just full the share top not we that quarter, we the margin provinces labor making being despite high-fire relationships we XX-gram us typically will XX the brand expect run. following quality, wedding over are flower. share our X.X%, the market, XX-gram rank bags this #X in come the SKUs. In Spinach again dominate the to have XX our

long other the manufacturers, of GrowCo category. over that confident the can margin run, we contract in the improve are partnership and with profile We

gummy basis Moving X and at #X share the expand including finished looking share, edibles. last XX.X% XXX when market positions basis. XX, and the category. to market to market quarter the just a continues Expense up SKUs points to in company share are on per-SKU #X from XX.X% top

edibles, we as not offerings category that shipped last expect of called cross-breed us. week. These THB-boosted product innovations under include the points share be trajectory a gains this cannibalization, CBN for despite new to infused to of Gratod several vape, sub-brand. which X we spinach this X.X%, driven We operators, atomic with the change being well of quarter efficient share the BlackBerry spinach yet, atomicoured In diesel pre-rolls field, that is new continue to targeted packaging, new flower is pre-roll which products additions, changes tropical just GMO cannabinoid-focused include market SKU pre-roll vape. are vape, the will Cush with driving share the market versus exemplified by In quickly and by by limited be Spanish field expanded assortment overhaul basis market ranks. where CBG-infused wave as SKU Automic cookies of we vapes, new to we rare launches market gummy a Sour This we want have best-selling the and innovative roles, and more free climbing which our including market-aligned to the ratood and our and XX in new brought GMO, CBG year, last our pricing,

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to Israel. Turning

Naturals Peace market. win the products to Our in continue

launches, in our foundation Israeli this to This campaign a adding want for growth warriors take I in to Earlier X,XXX terpene packaging approximately deserving or in Our We've wet $X performance. moment on net September, the cannabis for count total for nearing team and information for redesign, WettinCake, products. partnership approximately that of result revenue medical to incredibly Naturals our medical a life anxiety with been the traditional our train are on $X.X which in in XX% as XXX,XXX or currency faced patients those in category. Israel. Cookies, reacceleration addition to patient year, CLIA TocoBomba, patients. capitalize with veterans. The reported restrict campaign market consecutive had by to growth provides us of and cause a the on on additional amazing year-over-year GMO in for the to to Israel more, in many business permits due in a have we distress good is prestigious constant proud greater. Peace profiles XX% the revenue for problem country. We reactions And mayors the patient brand our month Israel to a a grew Association team third ad positive and seen shows our light year-over-year grow to of launched conflict have for Peace Israel's million. basis, Israel of well, Life serious continues newest a and Congratulations growth U.S. veterans shed to as good The net in the X,XXX patients work new patient award for social campaign awarded to year-over-year this our our to called increased allows in and an patient million. Warriors fireworks PTSD on. stop Naturals,

away shifted brands being completely have As portfolio. adult-use in our the focus over is from couple of we heard quarters, have the beauty-focused you channels past as to worked that product DTC these and formats. of is inventory beauty the through category-focused we shift All wholesale

structure cost investments our product adult-use improving us important in the formats. an continued only will believe U.S. our in We that in areas focus it and advantage give to is

on We further cannabis drives to singular creating can towards us are The our easily of viable adapted commercially as our become opportunities. be and focused markets adult-use brands focus business borderless pivot cannabinoid emerging products. in they creating products that U.S.

prohibition defenses month same. the adult-use healing legal in do put small framework federal industry. should a towards Looking a minor urging represent reasonable the to pleased step administration to for and the level by harm last cannabis-related for the comprehensive the regulatory cannabis and United that cannabis we done to be in States. We These issue cannabis be should are important place and pardons by believe but to actions the see market the opportunity, governors bid progress at

the continue industry be U.S., legalization our part As lead to to efforts efforts integral forward across conversation. meaningful and responsibly proud will committed social responsible to an continue legalization support justice reform. of are We're the using and we the voice to

approximate level where in the to we in an the at the high Australia, of stake early development. Moving stages executing Cronos have a Australia, XX% market is team

role To September big is recently October. Cronos approximately During start Australia share Cronos AUD our Australia is not $XXX million financial expanding X.X brought forward center With annually. recently expanded served least, they yielded market, online. as infrastructure, XXX,XXX million, per with growth, a continue in certainly dividend, Jeff drive most quarter, which team, a of like Having recently XXXX a America. state-of-the-art as hitting promotion congratulate distribution to I investment, reported market Jeff in and capital penetration. And Cronos of the Jacobson since we Head his record medical North back capital SVP, nearly USD such would Officer. and long-term Cronos been positive. also to with to a growing and Australia's run revenue new rate a cash has to Growth on pay in long-term low $X.XX a but continued strong Cronos growth and Chief last third announced to Growth strong which look a Australia, results, Cronos

Jeff's American to oversight and he operations. the his new oversee North will functions, addition In in marketing sales of role,

speed would the that, moves, we to us Congrats to Bob to Given take our I this believe shelf point one on creation guide at forward. With to process to will to Jeff on leader this role. having it getting you the going product financials. pass which the industry from for lead the of the better results through like idea new

profile net adverse by Revenue million. growth of World third of company and reduced the million was morning, year-over-year net lower and net from currency offset by up quarter versus third The driven the third consolidated of from gross of partially U.S. cannabis sales in reported everyone. quarter year. XXXX improvement revenue in the Israel driven of prior the price/mix. driven extract $X.X sales increase in positive cannabis prior by in flower the Campus an biomass year cannabis fixed lower XXXX the last revenue quarter costs, offset The negative primarily the segment, in X% was margin the other XXXX. cannabis segment, a EBITDA of product by U.S. in X% Canada, ROW from X% versus extract flower increased million, revenue margin than at a increased for million the flower the a in good and in from in and in primarily Rest $XX.X representing improvement XXXX XXXX. $XX.X XXXX. Thanks, a driven an $X.X to and the a by was Mike, segment. Consolidated decreases absorption to mainly company's improvement X%, quarter profit third quarter Peace increase higher Naturals Canada, gross profit. a Constant sales revenue research the was was third Consolidated year categories, consolidated quarter due The million, for carry by as and primarily $XX.X $XX.X The gross revenue driven by sales in driven sales a of adjusted general to and by result realignment which negative products activities improvement Israel, and the of the million, cost was of of of representing the development cannabis administrative, wind-down improvement favorable the lower lower in marketing, and cannabis timing strategic expenses initiative third partially were the and mix

to representing driven third quarter a million, we million, These Revenue XXXX primarily in currency Now $X.X segment offset net cannabis $XX.X revenue were in in turning the quarter Israel by the Canada, X% was of price of the of an of segment, year-over-year in and was revenue million, XX% Rest net from of flower $X.X In revenue third from increased segments. versus year cannabis Constant net down was sales extract of primarily in flower constant for gains of Canada. from improvement adverse revenue $X.X by the increased The sales in growth to the to an improvement Israel, World partially the quarter mix sales Rest lower our by Peace the third by for the in the XXXX. was the profit increased gross World million decrease carry shift. Gross lower $XX.X increased quarter higher the by million Rest costs, third offset the up million. in of XXXX. XXXX the driven million, of World Israel the at sales to Canada gross $XX.X of an of XX% reported the from gross and segment biomass due currency increase an extract in a quarter the and margin a higher activities other increase administrative timing X% absorption in to primarily driven $XX.X year in Canada expenses prior and The cost flower XXXX representing cannabis in lower third prior was quarter The last third was Campus. XX%, margin EBITDA general versus cannabis year. Adjusted by product cannabis fixed improvement XXXX. than driven negative improvement wind-down profit. while positive positive Naturals was partially categories,

reduction was XXXX. primarily activities. Adjusted $X.X a U.S. and reserves, sales due year and expenses, and The third the decrease the the marketing, The quarter decrease the of net of decline driven research from the of of a administrative, reduction to promotional $X.X increased segment. a quarter third by result and third U.S. from inventory year-over-year R&D. was Gross XXXX U.S. as the efforts to We a XXXX Turning quarter and its for improvement primarily and revenue of in for U.S. the the third lower third of the a of rationalization representing $XXX,XXX, sales XXXX The driven general from segment improvement versus in by decrease realignment $X XXXX. by in realignment the prior the million in year-over-year was the quarter was was representing EBITDA third as SKU a sales of million, negative segment reported driven in XXXX. decreases beauty driven XX% primarily of for negative volumes by implements quarter decline in category-focused quarter spend profit company business. million, the development $XXX,XXX

$XXX investments. approximately in with ended The million Now short-term to sheet. and quarter turning our balance company the cash

a balance P&L impacted volatility impact large As sheet. rate on foreign has our our exchange also had has

the sheet, significant approximately XX, balance spending period cash period rate. the approximately rates If would difference. to short-term reduce million you and burn on apply the we in XXXX, our and It's improve FX made current $XX $XXX million December ended for strides We have investments. cash

flows was cash third it savings by XX% expense and improved in down $X.X free turn operating reduction in CapEx, a versus With to Mike. back which I'll year, period last by Our over quarter. that, million the driven same XX% to

team giving Canada they win, drag that that Canada elite in The Bob. remain a will top to an Israel priorities. branding Despite In continue share, Having we've product proving products continues strength market see that and which any share and testament build to challenges product continue a of lineup market. us, to and capabilities building in and us Cronos across Israel, differentiator borderless for our started ground for on is you fight and date continues quality. to the to team and profitability, created on the team big for to We our evolve. portfolio. grow leverage in to in categories, a as gains confidence market Thanks, certain driving can our us is win win a market learn

strategic selectively have for our our thank singularly questions. I'll focused in we adult-use We us sheet that, balance in structure. and platform innovation progress on markets I market affords build With As industry-leading opportunity open line we I'm globally, that leaner to the employees open. to a encouraged our cost cannabis our with on dedicated the want winning remain they continue stay plan. new invest as and the the focused maintained execute long-term realignment, to continue on our to who

compile Standby Instructions] first Q&A as question. moment, for please, T[Operator the One we roster. you. Thank our

Carter Our come Andrew Stifel. from first question will of

of headset majority Obviously, to Spinach of has shows in bags, wanted diminishing the which the some kind vast of drill growth down been your on returns. trends. it kind the I

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and what we But you driver, take when your versus think certainly to there, point at for have I look it I grams. want the overall at XX and look value and grams portfolio to think I So X.X on respond it. consumers

changes more. ask cost hit I to that's therefore, about you of $X -- the next the the could that know XX to just a of make important second question that savings. incremental those P&L this the million optimization XX future $XX cost The year? be is million well. to year? disruptive, give got even said Therefore, something U.S. how to is I those how us scope a further that's this going allude much I have if did to or for as some until your million achieved understood in Can I you million much hit you X I until that or savings, you with savings cost embedded business, $XX Is wanted sure you wanted annualized that sense kind quarter. And $XX million the you And year. of right of but million is to kind of

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we're that in is the when contribution structure So with -- do think the about U.S., versus I opportunity U.S. still wouldn't what opportunity today. But we there. the cost we happy the see we say there's see

the positive we a $XX in contributor. let just savings, we're that that, it about had speak of further improve any possible to everything it the beginning it's that million. as evaluating plan because year, places and working find where But for as can not that's a making we're we that part business constantly lean to on is sure are of I the incremental still to mean I'll do So we're when and we Bob basically our at line. looking doesn't overall bottom making opportunities, something talk transforming we

that. little Yes. Those a very year million XXXX out confident color fiscal versus continuing in to the in actual in year. we're middle on to our more Thanks, cost and working Mike. to ability realized I'll of this savings his process. are our Listen, just add million efficient become hit in and $XX budget savings. the effective. cost in through prior on the prepared We're very And pointed focused as Mike we're more comments, $XX

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savings $XX million going this year we into anticipating million to the also. beyond So XXXX $XX we're additional realized

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you provide CBN, the how through see involving of pre-rolls, with partnership an deploying with product any THCV. considering your on if update could wonder glad you -- are launch if Kinko. new there's your strategic thinking CPG-infused development was us to I products I cultivated cannabinoids on

does had be for the uptake Sure. think involve We that a heavily going we've those motion in lot far products. for the of strategy well as And product the that as pipeline actually products. will

week this categories sorry, the So week main We feel seen like that the the make are to a X those with edibles anticipate. cannabinoid response -- just last And cannabinoids rare or, a sense do rare in. we've shipping pre-rolls. have to great with with

of on cannabinoids Now been it's market starting the the developing to that haven't been come some we've out.

a working, and think to just will is more to strength say, share, that look having differentiating think market new we the just cannabinoids gummy field So at, can and we given more roster. strategy portfolio we as the SKU CBG single we add continue basis, X.X% on the when that there's gain

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So we're not making being sure and we're rushing. careful that

at we half of complete but still transition, all completed next definitely a the that expect transition So have should we cultivation noting the be first gradual it's year activities map.

outlook. to changes view on just entertain strategy, some about would in you holding your of move If this Thinking especially on internal investments shed your one by if the Canopy's U.S. you light recent more. could if your U.S. I execute light U.S. wonder thinking, of way and co

Yes.

lot us, the of today, that maintained investment for PharmaCann balance we a still different in with we're have is situation dry -- a peers, a our of sheet. powder most than on think strong I given but

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our question. next for moment one And

of Azer Vivien from come will question next Our Cowen.

the I wanted to cannabinoids. on follow rare up

you, of it's featuring Mike, know the I keen you're While available. where are where cannabinoids days more U.S. a marketplace clearly products are for early observer

get kind think your apply category creative of see on and just that perspective what to a whether impressions you from like I'd So you will to Canada.

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able those of rare at think very it's is the some this easier to work of to pathway just get But now sort example, of are enough commercial like at seeing THCV, difficult led CBG. that does cannabinoids. what of some ones, we traditional of cannabinoids cannabinoids uptake now availability consumers there that we've the cannabis it a learned it, one the I look us challenges of U.S. still and availability have not to once does, get But to in channels, for the down are branded that There of some being CBN differentiator that CBN, products. supply. even is and a like really and lot you're stand-alone the provide outside seen of

continue to that opportunity the products. of believe way escape, So a great call it's good and commoditization we a it, to

please. follow-up, Israel, And pivot that the hear my has reaccelerated. for Nice market to just into

love view get where you an updated Israel. in penetration would can of market Just go to think

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moment, Zamparo The question will next Capital Markets. One next from CIBC of come our question. John follow please

share think the Israeli And dynamics Israel? I also the you're a you in wanted on talk market. about pricing do here? to And you can touch taking

to has relieved Sure. had or ago. limited X pricing some Yes, still we it's but what a compared quarter think pressure, I been there

system. work of you're we So seeing excess taking supply And the the way to think its share. some are I

it I we think out that stand quality. when comes to

I think continuing that perform. branch to a leader. recognized as And the is being we're

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product in find. little bring companies more there's I in. to what skepticism whatever product a in could local was So bit And activity there think a coming lot now of

macro So over of seen them last the and dynamics already to improve, we see we've those couple continue months. improve

is this the either on what of extracts? you Peace apologies margin, if back out the consolidated the it, can And I and follow-up world or then if my say you gross was but rest missed Naturals

do Bob, Yes. ahead you to want and that take one? go

feel We margin is as type history, minuses costs a that a and guys growing long-term experience. in lot with strong experiencing No, that sustainable revenues. versus going through lower margin some to of Yes. in our that's and ago, about the We're as to biomass Israel's business But profile. confident There transpired of the has GrowCo, you savings in a trajectory our really second are continues pluses quarter. grow definitely. remained be talked partnership relationship and of past

And than business that As Canada, in lot products our the continue slight worked stainer a SKUs by about cannabis taking segment, product in lower extracts little experienced the as decline in U.S. discontinued will business. And through of fixed continue transition profit delay by this our higher gross as was One we've and and this to part we was bit. a we things. the quarter become with categories. other a categories. They absorption realized of was We discounting have out margin million facility, talked recorded particular we in the cost in bigger had, product and trends. quarter from reserves, inventory $X.X dollars ROW of a driven that margins few particularly QX sequentially it a offset, have in to favorable

in mix shifts by some the the the margin quarter. of that the XX-gram in price bags Canadian driven category We that's the adverse impact flower call drove in also the discussed

like investment, So and began another anomaly, some milestones speed to and and that's lastly, their then during we third quarter, the this this ROI. a that processing -- great -- a -- rare have efficiency. on cannabinoids again, going haven't reached and period-based we long-term of some But product we market downstream believe, think for we'll in did quarter yet create the to is differentiation

say a the just expenses, that and things to be period carry the of I minuses and are would in that and and a quarter be lot are I pluses of minuses, consider to going were there So long incurred forward most going lot of don't sustained there sustainable term.

seeing you rare Thanks, Bob. before to if year, the we cannabinoid if equity What option early was that last X/X to a point. agreement cannabinoid amended And here, commercialize follow-up remember, the of hit on upon the you're so we just the letter commercialization. issue the productive wanted the we that had

cannabinoid could excited were there early. market back that get want about you a in we what is we to see the so And

for And question. next our moment one

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Two for questions me.

you next big expect to you And So growth. of you out know those pre-roll innovation I X particular. driver products stated first, in called be that your

segment already are that that crowded, question, fall. your brands to growth revenues, that that confidence And in second going you're your So space you drive continue my talking what given and about? to that gives they win pretty U.S. the is then

us again? as You've long Should clearly more more as it start a little quarter as bottom? to -- when about realignment there this should expect expect that to growing can your plan. decline term? bit explained very of give clarity come? any a to of part Could should we actually that you we Is think we How think how we segment

Thanks. Sure.

or to every For quickly look, until you start the either think will crowded set first companies there apart. question, category differentiation, become in ultimately I crowded is and cannabis is see

really, the in that brand that other similar is approaches way sure we So really and categories consumer going the that It's really we when good product. have think think what a well the on wants. entering, perform making we taking focusing about we're is to about

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think pre-rolled performed that it. I And of think think opportunity. said and really this excited well. beginning. is I is lot runway And have only a category crowded, was that and we that We're edibles could You about I the is a large very

out continue to take of going be next couple We it's from to have think lot share years. the And coming for that flower. a will I

it I As something far focused and on still think to you'll formats. in and just in down you'll get see we as continuing skinny the transition. we're the And the I when infrastructure product mean I right get proper. have we the on we're to where market, the back it's U.S., think be adult-use able are to to that going see grow a place start to innovation focused then

that to and think come we where what think out see is you cannabinoids the There's while can I are our formats, with growth more would we do able CBD growth. that beyond SKUs stand the something we limit product provide from.

I differentiate what in with HD-type think only CPD. to very hard it's it's we to see And products. similar

So of to there. a I think cannabinoids drive being able is use what's lot to going the growth different

And one next moment, for question. please, our

question of line next Our will Jefferies. of the come from Andrew Bond

for have seeing? in industry is been sheet like prospects of I might you M&A. Can wanted opportunities And board about that valuation made down. on you touch you have powder Obviously, how give remind terms to cash? the and the focus of the how of can any across levels deploy evaluating -- be around revisit balance you in are your kind you'd us you you what the dry valuations the more on assessing detail coming comments to sizable

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have or little from agree the in categories, going me. in here different now? of Just particularly they products product of in to gains for growth in particularly category the there's anticipating to done months, XX right on in or you you XX, limited going trend? your X kind of are are one protected seems the categories are the that you you Canada some Do branded do to become which of What's follow-up edible a Canada at has as the your Or Cronos be in a even off lot view is how well that Mike, the Q&A peers, more this, here? just eventually anticipate doing environment, the where In to that? category, there's a your as over dried to comments be particularly category saturated, with. edible particular current would one X in next a of been been Obviously, think fell cliff, a on which for bud think additional segment. I you kind of regulatory pivots lot there's value

Yes.

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along I about -- curve that think is far probably edibles you differentiation can get. it's as

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the than other where can consistent multistate up traditional more is popping edibles probably are states, categories brands look even they aren't the U.S., we though different see that across If operators. you necessarily at

pre-rolls. I think with see that you'll

started if innovation think flower. Canada. stickiness in think gummies outside than So anything, I like off of and there's I something you're more saturated much that to it emerge, there's more just leaders come But seeing

conclude this conclude And and Q&A also call today's today's session will the participating. you will call. all Thank for of conference

disconnect pleasant may You have and now a day.