Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos"), an
innovative global cannabinoid company, and Ginkgo Bioworks (NYSE:
DNA) (“Ginkgo”), the leading horizontal platform for cell
programming, today announced the achievement of the third target
productivity milestone in their partnership to produce eight
cultured cannabinoids. Using Ginkgo’s platform for organism design
and development, Cronos has successfully achieved the productivity
target for tetrahydrocannabivarin (THCV), a cannabinoid
hypothesized to reduce the appetite-enhancing property of THC.
Access to additional rare cannabinoids will support Cronos’
innovation pipeline and commercialization strategy.
Launched in 2018 with the goal of accessing rare molecules in
the cannabis plant to create innovative and differentiated products
that would otherwise be cost-prohibitive, the partnership between
Cronos and Ginkgo aims to produce cultured cannabinoids at
industrial scale. The program combines Cronos’ deep understanding
of the biological structure and function of cannabinoids with
Ginkgo’s vast experience designing microorganisms for the
production of cultured products across pharmaceuticals, agriculture
and more.
In August 2021, Ginkgo and Cronos announced the achievement of
its first equity milestone for cannabigerolic acid (CBGA). In
October 2021, Cronos launched its first cultured CBG product,
SPINACH FEELZ™ Chill Bliss 2:1 THC|CBG gummy, which quickly gained
consumer awareness, and according to Hifyre data has achieved 2.4%
market share in the gummies category in Canada as of the week-ended
June 11, 2022. Cronos went on to launch its SPINACH FEELZ™ Chill
Bliss 7:1 THC|CBG vape in January 2022.
“Continuing to hit these productivity milestones in partnership
with Ginkgo fuels our innovation pipeline focused on creating
borderless products utilizing rare cannabinoids that amplify and
differentiate the consumer experience,” said Mike Gorenstein,
Chairman, President and CEO of Cronos. “We are excited about the
possibilities that THCV is expected to give us and look forward to
getting more products with rare cannabinoids into market.”
“Working with Cronos to develop innovations in cannabis is an
opportunity for us to apply synthetic biology in a way that is
helping bring the cannabis industry forward and make a real impact
on its market and the customers it serves,” said Jason Kelly, CEO
and Co-Founder of Ginkgo. “The progress we’ve made thus far in our
collaboration is a true testament to both the potential of
synthetic biology and the world-class teams at Cronos and
Ginkgo.”
As a result of the achievement of the final productivity target
for THCV, Cronos has issued Ginkgo approximately 2.2 million common
shares.
About CronosCronos is an innovative global
cannabinoid company committed to building disruptive intellectual
property by advancing cannabis research, technology and product
development. With a passion to responsibly elevate the consumer
experience, Cronos is building an iconic brand portfolio. Cronos’
diverse international brand portfolio includes Spinach®, PEACE
NATURALS®, Lord Jones®, Happy Dance® and PEACE+™. For more
information about Cronos and its brands, please visit:
thecronosgroup.com.
CRONOS MEDIA
CONTACT:media.relations@thecronosgroup.com
CRONOS INVESTOR
CONTACT:investor.relations@thecronosgroup.com
About Ginkgo BioworksGinkgo is building a
platform to enable customers to program cells as easily as we can
program computers. The company's platform is enabling biotechnology
applications across diverse markets, from food and agriculture to
industrial chemicals to pharmaceuticals. Ginkgo has also actively
supported a number of COVID-19 response efforts, including K-12
pooled testing, vaccine manufacturing optimization and therapeutics
discovery. For more information, visit www.ginkgobioworks.com.
GINKGO BIOWORKS INVESTOR CONTACT:
investors@ginkgobioworks.com
GINKGO BIOWORKS MEDIA
CONTACT:press@ginkgobioworks.com
Forward-looking Statements of Cronos Group
Inc.This press release may contain information that may
constitute “forward-looking information” or “forward-looking
statements” within the meaning of applicable Canadian and U.S.
securities laws (collectively, “Forward-looking Statements”). All
information contained herein that is not clearly historical in
nature may constitute Forward-looking Statements. In some cases,
Forward-looking Statements can be identified by the use of
forward-looking terminology such as “may”, “will”, “expect”,
“plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe”
or the negative of these terms, or other similar expressions
intended to identify Forward-looking Statements. Forward-Looking
Statements include estimates, plans, expectations, opinions,
forecasts, projections, targets, guidance or other statements that
are not statements of historical fact. Forward-Looking Statements
include, but are not limited to, statements with respect to:
Cronos’ expectations regarding the potential success of, and the
costs and benefits associated with, its partnership with Ginkgo;
expectations about the development of the cannabis industry and
potential demand for cultured cannabinoids; Cronos’
commercialization and planned THCV product launch; the
partnership’s aim to develop eight cultured cannabinoids; Cronos’
and Ginkgo’s positioning to elevate the cannabis industry through
cannabinoid and product innovation to unlock the next generation of
its potential; the use of Cronos’ and Ginkgo’s combined
capabilities to make the benefits of cannabinoids more accessible
to consumers; and Cronos’ intention to build an international
iconic brand portfolio and develop disruptive intellectual
property. Forward-looking Statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive risks, financial results,
results, performance or achievements expressed or implied by those
Forward-looking Statements and the Forward-looking Statements are
not guarantees of future performance. A discussion of some of the
material risks applicable to the Company can be found in the
Cronos’ Annual Report on Form 10-K for the year ended December 31,
2021 and Quarterly Report on Form 10-Q for the period ended March
31, 2022, both have which been filed on SEDAR and EDGAR and can be
accessed at www.sedar.com and www.sec.gov/edgar, respectively. Any
Forward-looking Statement included in this press release is made as
of the date of this press release and, except as required by law,
Cronos disclaims any obligation to update or revise any
Forward-looking Statement. Readers are cautioned not to put undue
reliance on any Forward-looking Statement.
Forward-Looking Statements of Ginkgo Bioworks
This press release contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements regarding the potential success of the partnership and
Ginkgo's cell programming platform. These forward-looking
statements generally are identified by the words "believe," "can,"
"project," "potential," "expect," "anticipate," "estimate,"
"intend," "strategy," "future," "opportunity," "plan," "may,"
"should," "will," "would," "will be," "will continue," "will likely
result," and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the effect of Ginkgo's business combination with
Soaring Eagle Acquisition Corp. ("Soaring Eagle") on Ginkgo's
business relationships, performance, and business generally, (ii)
risks that the business combination disrupts current plans of
Ginkgo and potential difficulties in Ginkgo's employee retention,
(iii) the outcome of any legal proceedings that may be instituted
against Ginkgo related to its business combination with Soaring
Eagle, (iv) volatility in the price of Ginkgo's securities now that
it is a public company due to a variety of factors, including
changes in the competitive and highly regulated industries in which
Ginkgo operates and plans to operate, variations in performance
across competitors, changes in laws and regulations affecting
Ginkgo's business and changes in the combined capital structure,
(v) the ability to implement business plans, forecasts, and other
expectations after the completion of the business combination, and
identify and realize additional opportunities, (vi) the risk of
downturns in demand for products using synthetic biology, (vii) the
unpredictability of the duration of the COVID-19 pandemic and the
demand for COVID-19 testing and the commercial viability of our
COVID-19 testing business, and (viii) changes to the biosecurity
industry, including due to advancements in technology, emerging
competition and evolution in industry demands, standards and
regulations. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the "Risk Factors" section of
Ginkgo's quarterly report on Form 10-Q filed with the U.S.
Securities and Exchange Commission (the "SEC") on May 16, 2022 and
other documents filed by Ginkgo from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Ginkgo assumes no obligation and does not intend to
update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. Ginkgo does
not give any assurance that it will achieve its
expectations.
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