As Canadian cannabis companies increasingly seek an expanded presence internationally for cultivation and research opportunities, Toronto-based Cronos Group Inc. (NASDAQ: CRON; TSX: CRON) today announced the opening of a new R&D centre in Israel.
The company’s new cannabinoid device research and development facility, dubbed Cronos Device Labs, is located in Israel and will focus on vaporizer devices.
Cronos already has a foothold in Israeli cannabis-based research, having previously teamed up with the Technion Research and Development Foundation last year. The partnership saw Cronos and the Technion Israel Institute studying cannabinoid use as a treatment for skin disorders.
Cronos Device Labs will serve as a permanent base of operations for development of new products in Israel, with a staff of 23 people currently hired to run the facility. Company President and CEO Mike Gorenstein commented on the opening of the facility:
Gorenstein went on to say that the R&D crew consists of software engineers, formulation scientists, and product designers working to provide an expanded line of products revolving around vaporizer technology in the near future.
Since recreational adult cannabis usage was legalized in Canada last year, a clear trend in the licensed industry has emerged with customers smoking pre-rolled dried flower products less and seeking out other consumption methods more often.
Other methods such as vaporizers, oils, tinctures, patches, and edibles are all becoming more popular and seeing large-scale R&D efforts across the industry for new products to bring to a customer base seeking additional choices.
In other company news, back in March Cronos Group landed one of the single largest investments in Canadian cannabis history, with a $2.4 billion investment from Altria Group, Inc. (NYSE: MO).
Following that investment, former CFO William Hilson moved into the new position of Chief Commercial Officer to focus on expanding Cronos Group’s research & development.