Cronos (CRON - Get Report) shares were rising Thursday after the cannabis company announced that it has entered into an agreement to purchase an 84,000-square-foot fermentation and manufacturing facility in Winnipeg, Canada.
The facility will operate as "Cronos Fermentation" and include fully equipped laboratories covering microbiology, organic and analytical chemistry, quality control and method development.
"This acquisition will provide the fermentation and manufacturing capabilities we need to capitalize on the work underway with Ginkgo once the milestones under that partnership are achieved," said Mike Gorenstein, CEO of Cronos Group.
Cronos expects the acquisition to close in the third quarter with Apotex Fermentation, the current owner of the facility, overseeing a wind-down that is expected to continue through the fall.
Cronos shares were up 0.3% to $15.34 in trading.