Canadian cannabis company Cronos Group is pulling out of the U.S. hemp-derived CBD market.
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The Toronto-based company said the wind-down is meant “to improve its cash flow in the near term and position itself to directly enter the U.S. THC market when the necessary changes in U.S. regulatory conditions occur.”
Cronos acquired its hemp assets in 2019 from Redwood Holding Group in a deal worth $300 million.
The Lord Jones brand acquired as part of that deal will be relaunched in the Canadian adult-use cannabis market.
Cronos said the move will result in inventory write-offs, severance costs and impairment charges worth up to $1.8 million during its ongoing second quarter.
The company also is boosting its target for operating-expense savings in 2023 to $20 million-$25 million, up from $10 million to $20 million previously.
“We believe that one day, the U.S. will be one of
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