Toronto’s Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) has established a footprint in the Australian cannabis sector amid a steady increase in market growth within the country.
The cannabis company, first to ever list on the Nasdaq exchange, announced sending a shipment of flower to Vitura Health Limited (ASX: VIT) on Tuesday. Vitura was previously known as Cronos Australia before a rebrand in late 2022. The Cronos Group holds a 10 per cent stake in the company.
The Canadian operator says its decision to enter Australia’s market was partly inspired by a vast increase in medical cannabis patients. The number of them increased by almost 125 per cent to over 307,000 last year. The cannabis data company BDS Analytics says the Australian medical pot sales total for 2023 is expected to rise by C$16 million year-over-year once calculations are completed.
“Supplying the Australian market, which has grown significantly in the past three years, is a great milestone for Cronos as we aim to enter and expand within international markets,” Mike Gorenstein, President and CEO of Cronos, said.
Vitura is also involved in the psychedelics sector and established the joint venture Cortexa with MDMA and psilocybin producer PharmAla Biotech Holdings Inc. (CSE: MDMA) last year.
Read more: Village Farms enters British market, ships BC cannabis to distributor 4C Labs
Read more: PharmAla Biotech and Vitura Health form joint psychedelics venture in Australia
Majority of Australians support decriminalization
A new study from the British market researcher YouGov (LON: YOU) found that 50 per cent of Australian citizens support the legalization of homegrown cannabis plants for personal use. The December poll discovered that 54 per cent of Australians think pot should be decriminalized in the country as well.
Last week, Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) announced that it had received Australian GMP certification from authorities in the country for its Colombian facilities. This will enable the company to contribute to the supply of medical cannabis entering Australia while demand continues to grow.
Other cannabis companies supplying the country’s medical market include Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF), Aurora Cannabis Inc. (TSX: ACB) (NASDAQ: ACB) and Village Farms International, Inc. (NASDAQ: VFF).
rowan@mugglehead.com
