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Investor Ideas Podcast with Mike Gorenstein, CEO of Cronos Group (NASDAQ: $CRON, TSX-V: $CRON.V) Talking #Cannabis at #Arcview Investor Forum

Evolution of the Cannabis industry and why Israel is number one podcasts


Pt. Roberts, WA; Delta, BC - May 11, 2018 ( Newswire), a global news source covering leading sectors including marijuana and hemp stocks, releases an exclusive podcast interview with Mike Gorenstein, CEO of Cronos Group Inc. (NASDAQ: CRON, TSX-V: CRON).

Mike Gorenstein was at the Arcview Group Investor Pitch Forum, at the Westin Bayshore in Vancouver, Canada from April 30th to May 2nd. The forum brought together over 200 high-net investors with cannabis thought leaders and companies at the forefront of the new space. Cronos was a significant presence at the event, being the first Nasdaq-listed cannabis company.

Hear the full podcast: Mike Gorenstein of (NASDAQ:CRON) - Evolution of the Cannabis industry and why Israel is still number one

Mike Gorenstein of NASDAQ:CRON - Evolution of the Cannabis industry and why Israel is still number one

A key topic at the event was the merit of treating cannabis primarily an agricultural product or as a consumer good. Gorenstein said that other countries, such as Colombia, are better suited for the agricultural side as they have a more ideal climate and are more cost effective.

"It's an agricultural product and if you look at where it makes sense to grow the product, climate does matter, labour costs matter and with Colombia you will have a massive cost advantage," he said.

Gorenstein outlined the analogous behaviour in other markets.

"When you think of Apple, they don't make their iPhones in California," he said. "If you want to be cost competitive and you still want to get a high quality product to a consumer at a reasonable price, it is going to be important to take advantage of different structural pros and cons of countries and in Colombia and Latin America there is always going to be a very strong built-in advantage based off climate."

This complemented Cronos Group's production and distribution operations in Israel, which Gorenstein explained the advantages of.

"The most important factor was the opportunities for research and development and technology," he said. "What ultimately will separate the winners from the, we'll call them not-winners, is going to be technology and innovation. Israel's been by far the leader in cannabis research for decades. So for us, putting our own operation in Israel, being able to get access to all that historical talent, knowledge and experience is huge."

Gorenstein contrasted the cannabis landscape of Israel with those of Canada and the United States, with Israel's historically more academic grounding in the sector.

"It's very interesting because in the U.S. and Canada you see a black market and a grey market that've been around for years and have a commercial system that's now trying to evolve and move into this legal framework," he said. "In Israel you actually have a bunch of scientists and professors and that's been the market in Israel, it's all been research. And now they're trying to figure out how to become commercial."

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