Toronto-based cannabis company Cronos Group Inc.'s shares CRON, -3.21% surged 5.6% in premarket trade Monday, after the company said it has entered a cross-border joint venture with MM Enterprises USA LLC, or MedMen Enterprises, to develop branded products and open stores across Canada. MM, a company with facilities in California, Nevada and New York, will join forces with Cronos, which has a footprint in Germany, Israel and Australia, and trades on Nasdaq. The joint venture will be called MedMen Canada, and comes just months ahead of Canada's plan to fully legalize cannabis for adult recreational use. "MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide," said MedMen CEO and Co-founder Adam Bierman. MedMen is planning to go public in Canada in the second quarter. Cronos shares have gained 265% in the last 12 months, while the S&P 500 SPX, -1.15% has gained 16%.