Cronos Group Inc. (CRON), a constituent in the munKNEE Pure-Play Licensed Producers Pot Stock Index, reported dismal financials again  for the period ended June 30th, 2021, today, as follows:

Q2 Financial Highlights 

(All figures are in U.S. Dollars and compared to the previous quarter)

• Revenue: increased 24% to $15.6M
• Gross Profit (Loss): loss increased 427% to $(15.8)M 
• Gross Margin (%): decreased 339% to (101)% 
• Adj. EBITDA Profit (Loss): loss increased 36% to $(49.8)M
• Cash on Hand: decreased 11% to $895M

Operational Highlights

• In June a wholly-owned subsidiary of Cronos Group purchased an option to acquire a 10.5% ownership stake in PharmaCann, a leading vertically integrated U.S. cannabis company, on a fully diluted basis for a total consideration of approximately $110.4 million. Following the exercise of the PharmaCann option (which will be based upon various factors, including the status of U.S. federal cannabis legalization), Cronos Group and PharmaCann will enter into commercial agreements that would permit each party to offer its products through either party’s distribution channels.
• In June the company launched SOURZ by Spinach, a line of cannabis gummies in a distinctive “S” shape with a proprietary coating designed to provide bold sour and sweet fruit flavors, into the Canadian adult-use market and achieved a double-digit market share in the edibles category during the July and August-to-date period.
• In June Cronos also launched Spinach DABZ, a new line of cannabis concentrates that have no color remediation or additives to preserve terpenes and full-spectrum cannabinoids, into the Canadian adult-use market.
• During Q2 the Spinach brand also launched a 28-gram format for Spinach™ flower, Spinach Nuggetz, and a new flower SKU, Spinach GMO Cookies, in select markets in Canada.
• In June the Company officially re-launched PEACE+, a hemp-derived CBD offering of four tinctures, in the U.S. that is positioned in the mainstream market through its direct-to-consumer website, peaceplus.com. 
• In June, with the receipt of Cronos' fermentation processing license in April, and most recently the receipt of its license issued by the Canada Revenue Agency,  Cronos Group and Ginkgo Bioworks, Inc. announced an amended collaboration and license agreement that will enable the companies to accelerate the commercialization of cultured cannabinoids at scale and, with the amended agreement and both licenses in hand, Cronos Fermentation commenced commercial-scale production of cannabigerol in June.

Management Commentary

Kurt Schmidt, President and CEO, said:

• “Our U.S. growth strategy focuses on delivering long-term shareholder value by assembling a best-in-class brand and intellectual property portfolio and positioning to deploy our products in the U.S. market through investments and opportunities with companies that share our vision and commitment to responsibly distributing disruptive cannabinoid products that improve people’s lives exemplified by our strategic investment in PharmaCann during Q2 and we look forward to capitalizing further on opportunities in the U.S. that we expect will strengthen our ability to compete in this emerging market.”

Stock Performance

Cronos' stock price declined 9% during Q2, as seen in the chart below, and has declined another 15% since then and is now only +5.3% YTD.