LEAF and CRONOS?
It is interesting to note the synergies that exist between Cronos and MedReleaf and to speculate what a merger between the two would mean.
Neil Closner, CEO MedReleaf, and Michael Gorenstein, CEO of Cronos:
- both attended the Wharton School
- both are pursuing growth strategy in medical mj (Gorenstein's Linkedin page lists MedReleaf as an Interest)
- both have links to the medical mj industry in Israel
- both have a focus on Germany's medical mj market.
On October 12, Cronos announced it had signed an exclusive supply agreement with Pohl-Boskamp, Germany's largest pharmacy chain with over 12,000 locations. This announcement follows Cronos's Sept 1st announcement that one of its wholly owned subsidiaries also signed an agreement with Germany's Cannamedical Pharma to supply its 1,800 stores with medical mj. On March 19th this year, MedReleaf announced that it too signed an agreement with Cannadmedical Pharma to become its largest single supplier.
What I find odd here is that if MedReleaf had to step in to supply Cannamedical Pharma's 1,800 stores - how is Cronos going to manage to supply Pohl- Boskamps' 12,000 stores given Cronos' total production capacity of 401,500 sq. ft. and 45,150 kg. It seems to me that both companies are a good fit for one another, both have a similar market cap and that such a merger would not only create the largest Canadian mj entity, but also the largest medical mj company serving Germany’s medically insured 82 million population.