Shares of Cronos Group (NASDAQ: CRON) tumbled 18% last month, according to data from S&P Global market Intelligence, following a string of negative headlines.
Like many cannabis stocks, concerns surrounding vaping-related illnesses have weighed on Cronos Group's shares. More than 1,000 people have suffered lung injuries after using vaping products, and 19 people have died. Regulators in several states have banned sales of e-cigarettes in response.
Before these incidents, Cronos Group had viewed vaping products as a key growth driver. The company recently struck a deal with MediPharm Labs (OTC: MEDIF) that will see the extraction specialist fill and package vaporizer devices for Cronos' COVE brand. Now, however, vaping-related sales are likely to remain under pressure from regulatory bans and consumers' fears regarding product safety.