Canadian marijuana producer Cronos Group announced a cross-border partnership with California-based cannabis retailer MedMen on Monday, sending shares skyrocketing.

Cronos Group Shares closed up more than 11 percent on-the-day.

"We want to change the perception of cannabis worldwide, and bring it to the mainstream," Cronos Group CEO Mike Gorenstein said.

"It was really clear MedMen offered, by far, the best retail experience. We wanted to make sure we could bring that to Canada," he added.

MedMen Canada, as the joint venture will be called, is a new jointly managed company that will develop new, branded products and open stores across Canada.



The venture will leverage Cronos Group's Canadian expertise and product and MedMen's scalable branding, technology and retail experience.

"MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide," MedMen CEO and Co-founder Adam Bierman said in a statement.

"I think this is a milestone for the industry. You have an American and Canadian company with track records and resources to execute this venture — a meeting of giants," said MedMen spokesperson Daniel Yi.

"This speaks to the larger movement in mainstreaming marijuana and it shows that it is global movement," he added.

Furthermore, Gorenstein looks at the partnership with MedMen as one that could potentially prepare Cronos Group for a future in the U.S. market.

"This is the beginning – we look at this as a long term relationship," Gorenstein said.

MedMen, one of the largest cannabis retailers in California, has facilities in California, Nevada and New York. MedMen in January announced plans to list on the Canadian Securities Exchange as soon as April 15.

Cronos Group owns medical marijuana growing and distribution operations that serve Australian, Canadian, German and Israeli markets. In February, Cronos Group became the first "pure play" cannabis company to list on a major U.S. exchange.

Cronos Group shares are up 13.2 percent year-to-date and more than 300 percent in the past 12 months.