TORONTO — Cronos Group Inc.’s shares partially rebounded Tuesday from last week’s selloff after the cannabis company announced a partnership with Ginkgo Bioworks Inc. to genetically engineer cannabinoids in a lab.
The Toronto-based company’s stock gained 14 per cent at $14.63 in afternoon trading, after losing 28 per cent of their value Thursday following an accusation by U.S. short-seller Citron Research that it is withholding information that could be useful to investors.
The two firms will work to extract DNA from molecules in marijuana and produce them in a lab through a fermentation process at a lower cost.
Potential medicinal uses include chronic pain, nervous disorders, nausea, weight loss and some mental illnesses.
Cronos CEO Michael Gorenstein said during a conference call that it has been seeking a partner like this for two years.
Ginkgo’s process is expected to access cannabinoids that are present only in low quantities in the plant.
Companies in this story: (TSX:CRON)
The Canadian Press