cronos group inc cron cron is exiting its existing us hempderived cbdfocused operations by the end of the second quarter of 2023 the company noted it has made this decision to improve its cash flow in the near term and position itself to directly enter the us thc market when the necessary changes in us regulatory conditions occur consequently beginning with the second quarter of 2023 the company intends to report its financial results under one consolidated segment and will no longer report the us and the rest of the world as separate segments cronos is also increasing its previously announced 2023 operating expense savings target from a range of 10 to 20 million to a new range of 20 to 25 million partially due to its decision to wind down and exit its existing us operations in connection with the exit of its existing us operations cronos expects to incur expenses in the second quarter of 2023 of up to 18 million comprised of inventory writeoffs severance and other employee costs and asset impairment charges “we believe that one day the us will be one of the most important cannabis markets in the world” stated mike gorenstein chairman president and ceo of cronos “but we also believe our resources are best spent on staying laserfocused on becoming cash flow positive by driving cost savings and process efficiencies for our borderless adultuse products we have the best balance sheet in the cannabis industry with 836 million in cash and shortterm investments and zero debt as of march 31 2023 achieving our goal to generate positive cash flow in 2024 will advance our industryleading cash balance and put us in the best position to win in the us once regulatory conditions change” the company is committed to maximizing the value of its global branded product portfolio it anticipates bringing the lord jones brand back to its adultuse roots by launching it in the canadian market in the fourth quarter of 2023 cronos will continue to invest in rd and product development in canada to keep building our portfolio of borderless products across categories to equip us for when the us thc market opens “were looking forward to continuing the legacy and reputation of the lord jones brand by bringing it across the border to canada” stated jeff jacobson chief growth officer cronos “the lord jones brand will offer highquality differentiated adultuse products elevating the consumer experience through its original and unique brand proposition”