CRONOS GROUP INC (NASDAQ:CRON) Can Only Trade Higher As NASDAQ Trading Begins

CRONOS GROUP INC (NASDAQ:CRON) credentials in the marijuana space have received a major boost after its stock was elevated to the Nasdaq Global Market. The company becomes the first marijuana company to be listed in a major U.S exchange, a move that without a doubt has the potential to lead to more shareholder value on improved liquidity.Just as was the case in our previous analysis, we remain bullish about Cronos Group long-term prospects as trading on the Nasdaq commencesListing in the NASDAQ stock market further underscores Cronos Group edge in the pot space, given its expanded footprint on the global scene. In our view, the listing will strengthen investor confidence in the stock, more so from investors who until now have been on the fence about cannabis investments. CRON Daily ChartOver the past one year, the stock has been trading in an uptrend and in the process touched record highs of $11.9, early this year. While the stock has pulled back from the record highs to the $7.76 handle, in our view the pullback is a minor correction.Given the strength of the upward momentum and increased trading volumes, Cronos Group looks set to trade higher, with the 52-week high of $11.9 the next probable target. On the downside, the stock faces immediate support at the $6 a share handle, below which it could drop to the $4 a share handle.Before we carry out a detailed analysis on what the future holds for Cronos Group, following the Nasdaq Listing development, let us first understand what the company does in pursuit of growth and shareholder value.Cronos Group Core Business Cronos Group is a diversified and vertically integrated cannabis company with operations across four continents. The company invests in companies that are seeking a license to produce medical marijuana. It currently owns two licensed Canadian Licensed producers.In addition, the company has multiple international production and distribution platforms including Cronos Israel and Cronos Australia. Cronos Group also has access to over 12,000 pharmacies in Germany, which act as a key source of revenue.Cronos Group Expansion Drive Investors have started to take note of Cronos Group growth prospects, buoyed by investments geared towards expanding the company in key markets. In addition to relying on North America’s cannabis market for revenues, the company has set its eyes on Europe more so Germany.The diversified streams of revenues are one of the reasons why the stock remains a firm favorite for investors, looking to diversify their portfolios with stakes in the cannabis space.Cronos Group is also in the process of building a growing facility in partnership with Kibbutz in Israel, as it looks to expand its footprint into the Middle East. It has also received a license through a joint venture which paves way for it to market its products in Australia.The Joint venture in Australia should strengthen the company’s import/Export capabilities as well as its distribution network. In addition, the unit will be able to leverage Cronos Group intellectual property and iconic brands to deliver premium cannabinoid-based products.A vast portfolio of intellectual property is another attribute that justifies the hype, the stock continues to receive given that it could be worth more in future.NASDAQ Listing Potential Impact Listing on the NASDAQ is, however, the icing on the cake a move that should go a long way in validating the company’s long-term prospects especially among institutional investors.

"This uplisting to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint," said Mike Gorenstein, CEO of Cronos Group. "We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors."

According to the Chief Executive Officer, listing on the NASDAQ is a further testament to waning concerns about investments in the cannabis spaceThe listing on one of the largest stock exchange in the world is a big deal for Cronos Group. For instance, the company will now be able to venture into the capital markets to raise additional cash for financing development and expansion plans.The listings should also clear the confusion about legal investment in the cannabis space

“A lot of U.S. investors still are unsure about the legality: There’s not a lot of awareness about the fact that it’s federally legal in Canada versus the U.S. By listing on NASDAQ, it will open up the opportunities for a lot of U.S. investors that otherwise were unsure -- even on the institutional level,” said Mr. Gorenstein

What Next For Cronos GroupThere is no doubt that Cronos Group will be the center of attention on the NASDAQ listing development. The listing will not only open up new capital raising streams for the company but should broaden the stock’s awareness among investors who are keen on taking positions in the cannabis space.Cronos Group remains well positioned to trade higher, especially after the recent pullback, given that everything seems to be going well on the core business execution frontWe will be updating our subscribers as soon as we know more. For the latest updates on CRON, sign up below!Disclosure: We have no position in CRON and have not been compensated for this article.