Medicinal cannabis giant Cronos Australia pays first dividend after stock market success


How Aussies Are Getting Super Rich By Investing In Marijuana As The Cannabis Company Triples Its Revenue In A Year And Pays Its First Dividend

  • Medical marijuana company Cronos Australia has seen profits soar in 2022
  • The company is a subsidiary of the $1.8 billion Canadian cannabis giant Cronos Group
  • ASX share price reached 35 cents a share Monday, compared to 18 cents in July







Cronos Australia has tripled its annual sales to $67 million by 2022 and will be the first medicinal cannabis company in the country to pay shareholders a dividend.

The Melbourne-based company’s net profit rose $4.6 million to $6.04 million in the past 12 months – with much of the growth fueled by its merger with similar Queensland-based company CDA Health in December. .

“Cronos Australia is delighted to be able to declare a dividend to its shareholders at 1 cent per share, fully postage paid,” CEO Rodney Cocks said this week.

“This is another first for Cronos Australia, the first ASX-listed medical cannabis company to make a profit and now the first to pay a dividend.”

Medical professionals can prescribe cannabis to Australians after laws were relaxed in 2016 (stock image)

Medical professionals can prescribe cannabis to Australians after laws were relaxed in 2016 (stock image)

Mr Cocks said he was pleased that the record growth could be shared ‘in a tangible way’ with shareholders.

In addition to the merger, he said the gains were also driven by overall growth in the medical cannabis market, as restrictions are eased and more healthcare professionals are prescribing the drug.

“Looking ahead to 2023, the company is confident it is well positioned to deliver further growth and shareholder value,” he said.

Cronos Australia, a $1.8 billion subsidiary of Canadian giant Cronos Group, does not grow or manufacture cannabis products, unlike many competing companies in the industry.

Rather, it calls itself a ‘laser-like’ focus on its ‘CanView’ technology platform that acts as a marketplace for medicinal cannabis, its branded products and its ‘cannadoc’ clinics.

dr.  Marcia Walker, Interim Chairman of Cronos Australia

dr.  Marcia Walker, Interim Chairman of Cronos Australia

Rodney Cocks, CEO of the company

Rodney Cocks, CEO of the company

Cronos Australia has tripled its revenue by 2022 (Photo: Interim Chairman Dr Marcia Walker left and CEO Rodney Cocks right)

In the third quarter of 2022, approximately 125,500 products were sold through the CanView platform, generating revenue of approximately $16 million.

Of that, about $561,279 was the company’s own Adaya range.


Tetrahydrocannabinol (THC) and cannabidiol (CBD) both come from the cannabis plant.

Together they are part of the cannabinoid group of compounds found in hashish, hash oil and most types of marijuana.

THC is the psychoactive compound responsible for the euphoric, “high” feeling often associated with marijuana.

THC interacts with CB1 receptors in the central nervous system and brain, creating the sensations of euphoria and fear.

CBD does not fit well with these receptors and in fact reduces the effects of THC and is not psychoactive.

CBD is thought to help reduce anxiety and inflammation.

‘Companies that have made it (in the industry) have made a strategic shift in cultivation. We have learned lessons from that and it justifies our decision and strategy to be asset-lite. But we’re also looking at technology spots in the industry that are moving forward,” Mr Cocks said last month.

The company will pay the dividend to shareholders on October 11.

Cronos Australia’s ASX share price jumped to 35 cents a share as of Monday – after a dip to 18 cents a share in mid-July – and rose from just over 10 cents a share in 2021.

The brief dip in July was the result of the NASDAQ-listed Cronos Group lagging analysts’ revenue estimates for the fiscal year, although it still reported a 48 percent increase in revenue from the previous year.

Certain laws have been passed since 2016 to allow the prescription and delivery of medicinal cannabis products to Australians.

Patients can be prescribed medicinal cannabis, products containing THC or CBD, if they pass a suitability test.

There are now 260,000 prescriptions in Australia since medical cannabis was legalized.

Recreational use of marijuana remains illegal in Australia.

But calls to legalize cannabis in Australia are growing, in a move that would follow Canada, a string of European countries and 18 states in the Americas, including Colorado, New York and California.

A 2019 National Drug Strategy Household Survey found that a significant minority – more than 40 percent of Australians – believe that cannabis for personal use should be legalized.

Cannabis products may contain THC or CBD, the latter not producing the 'high' (stock image)

Cannabis products may contain THC or CBD, the latter not producing the 'high' (stock image)

Cannabis products may contain THC or CBD, the latter not producing the ‘high’ (stock image)