CRONOS GROUP INC COM NPV (OTCMKTS:PRMCF) Set To Make New Highs

If you read our last coverage of CRONOS GROUP INC COM NPV (OTCMKTS:PRMCF), you can remember we looked at the milestones the company attained as it prepares for legal recreational marijuana market in Canada – its domestic market.In recent months, we’ve seen a stream of positive news about PRMCF, which has caused movements in the stock price. In this piece, we put some notable recent developments around PRMCF in perspective for you to see if this is a stock you may trade for near-term or long-term profits.Before we get into the details, take a look at the company’s share price action. PRMCF Daily ChartBusinessFor readers not familiar with PRMCF, a little background on the company should suffice.PRMCF was founded in 2013 and it is headquartered in Toronto, Canada. PRMCF operates as an investment firm with a focus on the legal marijuana market. It operates several wholly-owned subsidiaries, which are licensed cannabis producers in Canada, and holds minority investment stakes in several other licensed cannabis producers.As such, PRMCF has a diversified exposure to the legal marijuana industry.Recent developmentsOn September 12, PRMCF announced that it has been admitted into the Nasdaq International Designation program – a platform for non-US companies. The program rewards members with increased visibility and access to a larger investor base.Mike Gorenstein, the CEO of PRMCF, noted the following about the Nasdaq international designation:

"We've always had a strong U.S. investor base and that investor base continues to grow. This designation will improve Cronos' visibility across U.S. capital markets and increase shareholder confidence and liquidity."

Source:PRMCF is not done investing in promising companies or expanding its completely owned subsidiaries because the legal cannabis market continues to expand and new opportunities emerge for the company to capitalize on. To fund its capacity expansion and to invest in strategic assets, PRMCF has tapped into the debt and equity markets to raise additional capital. On August 24, the company announced that it had secured a $40 million debt financing deal with Romspen Investment Corporation.Again on September 18, PRMCF announced that it was raising $15 million in additional capital through a stock sale at a premium price to the prevailing market price. Whereas stock fundraising has dilutive effect, there is something interesting about PRMCF’s secondary stock sale. The company initially sought to raise $10 million through secondary stock offering, but investors demanded more that it had to expand the offer – a sign that the many investors believe in the upside potential of PRMCF stock.The additional capital that PRMCF is raising will complement the cash it already generates from operations, giving it even greater financial flexibility. The company said its sales grew 25% sequentially in 2Q17, and that it earned 174,879 in positive net income from operations. Its non-core investments brought in $1.3 million in net income in the quarter.PRMCF currently relies on its domestic market for most of its revenues, but international revenue opportunities continue to open.PRMCF is exporting its expertise in marijuana production and unlocking new business opportunities abroad – putting itself on the frontline of the expanding global marijuana market.On September 6, PRMCF said it has entered into a strategic joint venture with a prominent Israel-based manufacturer and exporter for the production and distribution of medical cannabis. Gan Shmuel, PRMCF’s Israeli joint venture partner, supplies 35 countries Europe and Asia.Under the deal, PRMCF and Gan Shmuel will collaborate in production, manufacturing and global distribution of medical marijuana using Gan Shmuel’s vast networks. PRMCF will contribute its expertise to ensure low-cost cannabis production while capitalizing on Israel’s favorable climate for cannabis cultivation. Low-cost production should lead to higher profits for PRMCF and its joint venture partner.In another global deal, PRMCF announced on September 1 that its wholly-owned subsidiary, Peace Naturals Project, had won a supply contract to Germany – one of the most coveted markets for cannabis producers.Under the deal, Peace Naturals will supply Cannamedical Pharma with medicinal cannabis. Cannamedical is federally licensed to import narcotics into Germany and it is Europe’s fastest-growing cannabis retailer with network of 781 pharmacies – and counting.The good news is that there is a shortage of medical cannabis supply in Germany, which means that PRMCF could make a lot of money supplying the market.Here’s what Mike Gorenstein, the CEO of PRMCF, said about the supply deal with Cannamedical:

"Both companies share the same beliefs regarding the importance of product quality, and Peace is proud to continue to set the standard for medical cannabis in Germany.”

Source:PRMCF also has a contract to export medical cannabis oil to the Cayman Islands. In an August 29 announcement, PRMCF disclosed that its subsidiary Peace Naturals won its first supply contract to Cayman Islands from an entity called Caribbean Medical Distributors.ConclusionA lot of great things are happening at PRMCF, and these have the potential for catalyzing further the upward rally in the stock. With this being a Canadian company, the pending legalization of recreational marijuana market in Candia is also worth keeping a tab on.We will be updating our subscribers as soon as we know more. For the latest updates on PRMCF, sign up below!Image courtesy of Fortune420 via FlickrDisclosure: We have no position in PRMCF and have not been compensated for this article.