The S&P/ASX 200 Index (ASX: XJO) may be down in the past month but this ASX cannabis share has steamed ahead.
The Cronos Australia Ltd (ASX: CAU) share price has rocketed 26.67% over the past 30 days. On Friday alone, the company’s shares leapt by 8.57% to finish the session at 38 cents. Earlier in the day, they hit an all-time high of 39.5 cents.
Let’s take a look at what could be helping this ASX cannabis share grow.
Why is this ASX cannabis share doing so well?
Cronos Australia is a medicinal cannabis company operating in the medical, clinics, and consumer segments.
Cronos merged with CDA Health Pty Ltd in December. The board appointed four new directors, Guy Headley, Benjamin Jansen, Kurt Schmidt, and Marcia Walker. CDA Health is now a wholly-owned subsidiary of Cronos Australia.
On 27 January, Cronos reported its medicinal cannabis unit sales in H1 FY2022 exceeded total sales for all of FY2021.
The Cronos Australia CEO, Rodney Cocks, described the merger with CDA Health as a “game changer” for the cannabis company and its shareholders.
Cocks said:
The merger with CDA Health is a key milestone achieved by Cronos Australia since its IPO in late 2019 and should propel the integrated company to a position of market leadership in Australia and position it for sustainable, profitable growth.
The combined Cronos Australia and CDA Health business will allow us to take the Company to the next level of growth, both in Australia and offshore.
Cronos Group Inc (TSE: CRON, NASDAQ: CRON) is the largest shareholder of Cronos Australia with a 31% stake.
Cronos share price snapshot
This little-known ASX cannabis share has ascended in value by 153% over the past year and 65% this year to date. For perspective, the benchmark ASX 200 index has returned 6% over the past year.
Cronos has a market capitalisation of about $209 million based on the current share price.
