Cronos Group Inc. (PRMCF) announced that it has entered into a letter of engagement with PI Financial Corp. as the sole lead underwriter to purchase for re-sale 4,761,905 common shares. This is being done on a “bought deal” basis pursuant to the filing of a short form prospectus and expected to price $3.15 per share for total gross proceeds of $15,000,000.75.
Cronos plans on using the net proceeds for general corporate purposes, to fund growth and to provide for possible future acquisitions. The deal is expected to close on or about November 14, 2017.
Cronos has been busy this year expanding into international markets. Just last week the company signed a deal entering into a strategic distribution partnership with G. Pohl-Boskamp GmbH & Co. KG, which is an international pharmaceutical manufacturer and supplier, distributing its products to over 12,000 pharmacies in Germany alone. Cronos’ global subsidiaries will supply Peace Naturals branded cannabis products to Pohl-Boskamp for distribution within Germany.
In September, the Company has entered into a strategic joint venture with Kibbutz Gan Shmuel for the production, manufacture and global distribution of medical cannabis. Gan Shmuel is one of the largest and most sophisticated kibbutzim in Israel, producing and exporting a variety of products to 35 countries throughout Europe and Asia.
The stock has risen 189% on the Toronto Exchange, where it trades under the symbol MJN. While the Toronto Exchange said this week that it will not allow its listed companies to do business in the U.S. where marijuana is still federally illegal, it has no issue with other countries, if those countries allow marijuana use.
Cronos Group Inc was formerly PharmaCan Capital Corp. and operates two Licensed Producers regulated within Health Canada’s Access to Cannabis for Medical Purposes Regulations (the ACMPR) and holds a portfolio of investments in other Licensed Producers and ACMPR applicants. Its LPs, Peace Naturals Project Inc. and In The Zone Produce Ltd., are collectively located on over 125 acres of agricultural land. It also holds equity positions in Licensed Producers Whistler Medical Marijuana, Hydropothecary and Abcann Medicinals. Whistler Medical Marijuana is licensed to produce and sell medical marijuana, as well as cultivate cannabis oil. Hydropothecary is licensed to produce medical marijuana. Abcann Medicinals also has license to produce medical marijuana. With interest in five Licensed Producers and two LP applicants, it is focused on building brand portfolio providing patients with personalized care.