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Cronos CEO Talks Vaping With Cramer

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Cronos CEO Talks Vaping With Cramer

Cannabis company Cronos Group Inc (NASDAQ: CRON) plans on launching vaping devices in Canada with a focus on safety, quality and proper ingredients, company founder and CEO Mike Gorenstein told CNBC's Jim Cramer.

What Happened

Cronos opened a cannabinoid device R&D facility in Israel in May intended to support its initiatives for selling next-generation vape products that are meant for cannabinoid applications.

The new facility has been leveraging the company's six years worth of research and will culminate in the launch of a new vaping brand, Spinach, the CEO said on Wednesday's "Mad Money."

The brand name is a subtle play on the food item, which most kids hate and should turn underage smokers away from the products, he said. 

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Cramer Lends His Support

Cronos' line of CBD products earned a live endorsement from Cramer, who is a spokesperson for the American Migraine Foundation.

On live TV, he said there are 30 million people who suffer from migraines, and putting a Cronos-branded CBD cream on their head can offer relief.

"It is the only thing that works," Cramer said. "We all know it, but we are all afraid to talk about it."

Altria 'Extremely Helpful'

Tobacco company Altria Group Inc (NYSE: MO) bought a 45% ownership stake in Cronos, and the relationship has been "extremely helpful," Gorenstein said.

Cronos is a young company that focuses on innovation and brands with big ambitions, but with a product line that remains controversial, he said. 

Altria has a similar background and over many decades transformed itself to become a "manufacturing, distribution and brand powerhouse," the CEO said. 

Cronos shares were down 4% at $10.51 at the time of publication Thursday. 

Related Links:

MediPharm Signs Manufacturing Agreement With Cronos Group

Cannabis Countdown: Top 10 Marijuana Stock News Stories Of The Week

Posted-In: CBD CNBC Jim Cramer Mad Money Mike GorensteinCannabis Markets Media Best of Benzinga

 

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