Cronos CEO Mike Gorenstein Says He's Optimistic About Trump's Impact On Cannabis

Cronos group CEO Mike Gorenstein CRON says the cannabis industry should not rely solely on Democratic leadership for reform.

Instead, he says President-elect Donald Trump is personally more open to cannabis reform than Biden, but warned against expecting rapid changes, as cannabis won’t be a top priority for the new administration.

Trump vs. Biden: Cannabis Reform Expectations

In a recent appearance on Cultivated with Jay Rosenthal via X (formerly Twitter), Gorenstein shared his views on the political landscape following the November elections.

Despite poor market response to the results, Gorenstein remains optimistic. He pointed out the successes in red and purple states while acknowledging that traditional blue-state markets like California and Massachusetts are not the best examples of cannabis markets.

In the midst of the expectations created by Trump’s nomination of cannabis legalization supporter Matt Gaetz to his cabinet, Gorenstein advised caution about expecting significant changes in the near future, pointing out that while Trump might be more favorable, cannabis is unlikely to be a top priority for incoming administration.

"As far as timing, you can’t expect it to happen next year. There's a lot of things that need to be done, and it's not the primary issue," he added.

Read Also: Trump Nominates Another Cannabis Supporter To Cabinet: Rep. Matt Gaetz For Attorney General

Focusing on Strategy, Not Stock Prices

Discussing Cronos’ approach, Gorenstein said the company does not need to issue more shares. Instead they are focusing on building a strong portfolio of high-quality cannabis products and expanding to global markets such as Germany.

The company is going through a good moment that reflects in the fact they are running low on product, and needing to invest on escalation of their current operations to catch up with the growing demand.

Still, prices cannabis stocks have been on a downtrend, but for Gorenstein, “you just get used to volatility… it's a real mistake and a trap to follow stocks every day."

Earnings Report Q3 2024

Recently Cronos Group reported Q3 2024 net revenue of $34.3 million, a 38% increase driven by stronger cannabis sales across Canada, Israel, and international markets.

Despite a net income turnaround to $7.3 million, adjusted EBITDA remained negative at $6 million.

• Read Next: Cronos Cannabis Co. Will Provide $51M To GrowCo Toward Facility Expansion Fund

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