Cronos (CRON) Set to Expand to the Netherlands With the Acquisition of Europe’s Largest Adult-Use Cannabis Company

Cronos Group Inc. (NASDAQ:CRON) is one of the best long-term penny stocks to invest in. Cronos Group Inc. (NASDAQ:CRON) announced on December 9 that its wholly-owned subsidiary entered into a definitive share sale and purchase agreement for the acquisition of all the outstanding shares of CanAdelaar B.V., which is the largest cannabis company in operation in the adult-use cannabis pilot program (the Wietexperiment) in the Netherlands.

Is Cronos Group Inc. (CRON) The Best CBD Stock To Invest In Right Now?

The Purchase Agreement entails that CanAdelaar shares will be acquired for an up-front consideration of €57.5 million, or $67.0 million, subject to particular customary adjustments. Additional contingent consideration would be payable in cash based on 0.5x of CanAdelaar’s normalized EBITDA in 2026 and 2027.

Management stated that the acquisition of CanAdelaar by Cronos Group Inc. (NASDAQ:CRON) marks a “highly strategic” and “financially compelling” transaction that would support the company in establishing a strategic footprint in Europe while also enabling it to leverage its investments in borderless products.

Since the Netherlands has a deep cannabis heritage, with its coffee shops recognised as playing a critical role in the development of the legal cannabis industry, Cronos Group Inc. (NASDAQ:CRON) believes that European expansion marks a significant area of focus for the company’s prospects.

Cronos Group Inc. (NASDAQ:CRON) is involved in the production and distribution of cannabis, and operates through Israel and Canada segments.

While we acknowledge the potential of CRON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRON and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.