Cannabinoid company Cronos Group Inc. (CRON, CRON.TO) Wednesday announced its decision to exit its existing U.S. hemp-derived CBD-focused operations by the end of the second quarter of 2023.
Cronos said it made this decision 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.
Consequently, beginning with the second quarter of 2023, the company intends to report its financial results under one consolidated segment and will no longer report the U.S. and Rest of World as separate segments.
Cronos is also increasing its previously announced 2023 operating expense savings target from a range of $10 to $20 million to a new range of $20 to $25 million, partially due to its decision to wind down and exit its existing U.S. operations.
In connection with the exit of its existing U.S. operations, Cronos expects to incur expenses in the second quarter of 2023, of up to $1.8 million comprised of inventory write-offs, severance and other employee costs, and asset impairment charges.
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