Cronos Group (NASDAQ: CRON) (TSX:CRON) announced Thursday it entered into an agreement to acquire GMP compliant fermentation and manufacturing facility from Apotex Fermentation. The acquisition is expected to be completed during the third quarter, whereas Apotex Fermentation will continue to be in charge of a wind-down of the facility through Fall.
This facility is based in Winnipeg, Canada and it covers 84,000 square feet. Inside the facility are completely equipped laboratories, microbial fermentation production areas, and processing plants.
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Previously, Cronos Group has partnered with Ginkgo Bioworks with the aim to produce cultured cannabinoids. With this new facility addition, the company would be able to achieve that at a commercial scale. Its products are expected to be of high-purity and high-quality.
"This acquisition will provide the fermentation and manufacturing capabilities we need to capitalize on the work underway with Ginkgo once the milestones under that partnership are achieved," said Cronos Group CEO Mike Gorenstein. "Together with Ginkgo, we are bringing innovation and the power of biological manufacturing to the cannabis industry, aiming to allow for cannabinoid production at large scale and with greater efficiency than is currently possible with traditional cultivation and extraction."
Cronos Group's stock traded higher by 1.7% to $15.56 in Thursday's pre-market session.
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