CRON · Cronos Group Inc.

Cronos Group entered into a SPA Amendment on May 8, 2026, extending the long stop date for its acquisition of CanAdelaar B.V., a licensed Dutch cannabis grower, from June 9 to September 9, 2026. This provides critical additional time to secure Dutch regulatory approvals, license confirmations, and complete the Bibob background check, signaling commitment to establishing a European foothold in the legal cannabis supply chain while highlighting ongoing regulatory hurdles. The original SPA dates to December 9, 2025, with no other material changes to terms. Concurrently, Q1 2026 results showcased robust performance with net revenue reaching a record $45.2 million, up 40% year-over-year, driven by higher cannabis flower sales in Israel and other tax-free markets, plus increased extracts and flower in Canada. Gross profit hit $19.2 million (42% margin), benefiting from favorable product mix shifts and volume growth post-Cronos GrowCo expansion, though slightly down from 43% prior year due to excise taxes. Operating loss narrowed to $1.8 million amid higher sales/marketing and G&A expenses supporting growth. Strong other income of $20.0 million, led by foreign currency gains and interest, propelled net income attributable to $13.8 million ($0.04/share), more than doubling YoY. Adjusted EBITDA surged 122% to $5.1 million, reflecting core business momentum. Balance sheet remains fortress-like with $822 million cash, enabling the new $50 million share repurchase authorization effective May 14, 2026, through May 13, 2027, via open market or private deals limited to 5% of shares, succeeding the prior program after repurchasing $33.5 million worth. Management emphasized borderless strategy, Spinach® #1 in Canadian vapes/edibles, PEACE NATURALS® dominance in Israel, and international expansion potential.