Cronos Group Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 14, 2018
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Cronos Group (CRON) stock popped over two percent in early market trading after the Canadian cannabis reported that its revenue for the second quarter jumped 428% to $3.4 million. It was an increase of $2.8 million over the previous year’s quarter.

The main drivers behind the revenue increase were an expansion in patient onboarding, an increase in average sales price and the strong growth in cannabis oil sales. Second quarter cannabis sales were responsible for 40% of the company’s domestic medical sales.

The company delivered a gross profit of $6.3 million for the quarter versus $1.1 million for the same quarter in 2017. The net income rose to $723,000 for the quarter versus $174,000 for the same quarter last year. Cronos strengthened its balance sheet by raising $100.0 million of gross proceeds through a bought deal offering of common shares in April 2018. bringing the company’s total liquidity to $118.0 million.

“Cronos Group delivered encouraging results across the Company in the second quarter with sales growing among all of our products and channels, impressive improvements in cultivation yields since the start of the year, and continued business development success in penetrating new markets and establishing new partnerships for expansion,” said Mike Gorenstein , CEO of Cronos Group.

Since Q2

The company has been busy since the quarter closed. Last month it announced a 50/50 strategic joint venture with a group of investors led by Bert Mucci to create a new partnership named Cronos Growing Company Inc. The group plans to construct an 850,000 square foot greenhouse for cannabis production on approximately 100 acres of land owned by Cronos GrowCo in Kingsville, Ontario. Once fully operational, the greenhouse is expected to produce up to 70,000 kilograms of cannabis annually.

In addition to that joint venture, Cronos entered into a supply agreement with Cura Cannabis Solutions, which is one of the largest cannabis companies in the world by revenues in the first quarter of 2018. The five year take-or-pay supply agreement is set to purchase a minimum of 20,000 kilograms of cannabis per annum from Cronos GrowCo starting from the date Cura receives its production and sales licenses from Health Canada. Cura also expects to build its proprietary, state-of-the-art extraction facility on a parcel of land owned by Cronos Group in the heart of Okanagan Valley, British Columbia.

Stock Performance

Cronos stock was moving up over 2% in early trading to $5.96. The stock’s 52-week high was $10.39 and the year’s low is $5.12.


William SumnerWilliam SumnerAugust 9, 2018
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It’s time for your Daily Hit of cannabis financial news for August 9, 2018.

On the Site

High Times

The longest-running marijuana media company High Times is launching an unfiltered “over-the-top” online streaming-video product called High Times TV. The channel is live now on tv.hightimes.com and available as an app for iOS, Apple TV, Android, and Roku. HTTV  was created in order to give a home to the best cannabis-related videos across the internet. In turn, creators and fans will get a much-needed resource to find entertainment and information that continues to come under fire from traditional outlets that have tried to restrict content featuring marijuana. You may recall that recently, YouTube began deleting Spanish language cannabis related channels.

Canopy Growth Corporation

Canopy Growth Corporation  (CGC) has acquired all of the remaining outstanding shares of its Chilean in-market entity, Spectrum Cannabis Chile SpA . According to the statement, in exchange for Cannagrow SpA’s 15 percent interest in Spectrum Cannabis Chile SpA, Canopy Growth paid cash of US$750,000. Prior to the acquisition, the Company controlled 85 percent of the issued and outstanding shares of Spectrum Cannabis Chile SpA.

In Other News

Terra Tech Corp.

Today, Terra Tech Corp. (TRTC) reported its financial results for the second quarter, ending on June 30, 2018. Revenue for the quarter rose 11% from $7.8 million during the same period in the previous year to $8.7 million. The company’s net loss also rose from approximately $500,000 to $11.4 million. Cash on hand slightly declined, falling from $5.4 million as of December 31, 2017, to $5.2 million. “During the second quarter of fiscal 2018 we focused on both growing topline revenues, which reached $8.7 million for the quarter, and investing in building out infrastructure to support our longer-term growth strategy,” commented Terra Tech CEO Derek Peterson.

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TGOD) announced that is has chosen Shopify to build its e-commerce platform for medical cannabis and future recreational cannabis sales. Shopify is slowly becoming one of the leading sources in the cannabis industry for e-commerce solutions. The company has already entered into agreements to build e-commerce platforms for Aurora Cannabis, The Hydropothecary Corporation, and the provincial government of Ontario. “We are pleased to announce this agreement with e-commerce giant Shopify,” said Csaba Reider, President of TGOD. “We see tremendous value in this relationship and Shopify will play an instrumental role in our ability to rapidly scale and provide our premium organic cannabis to global markets.”

Cronos Group Inc.

Cronos Group Inc. announced that it has entered into a supply agreement with Cura Select Canada, Ltd. In terms of revenue, Cura is one of the largest cannabis companies and is best known for its Select Oil and Select CBD brands. Cronos has signed a five year take-or-pay supply agreement in which Cura will purchase a minimum of 20,000 kilograms of cannabis per year from Cronos Growing Company Inc., which Cura will use to develop and manufacture cannabis extracts and products. “We are thrilled to be partnering with one of the cannabis industry leaders in extraction technology and value-added products,” said Mike Gorenstein, CEO of Cronos Group. “This supply agreement is the start to a synergistic collaboration for our newly created entity Cronos GrowCo and through the structure with Cura, is the type of creative and forward-thinking partnership that is at the core of industry-leading infrastructure that Cronos seeks to establish.”

 


Debra BorchardtDebra BorchardtJune 25, 2018
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It’s time for your Daily Hit of financial cannabis news for June 25, 2018.

On The Site

GW Pharmaceuticals

If any other company released any news today, then it went basically unnoticed because the FDA approved GW Pharmaceutical’s (GWPH) cannabidiol drug Epidiolex. The news was expected sometime this week, so it was nice of the FDA to just get it out of the way on Monday. According to the press release, this is the first FDA-approved drug that contains a purified drug substance derived from marijuana and it is also the first FDA approval of a drug for the treatment of patients with the Dravet syndrome.

Even though the FDA has now approved the use of Epidiolex as a real treatment for these diseases, it doesn’t immediately change the status of cannabis as a controlled substance. The FDA did not say in its release whether it had delivered a recommendation to the DEA regarding Epidiolex and its schedule status.

However, in GW Pharmaceutical’s statement, the company said it would have to be rescheduled before it could be made available to patients. “Rescheduling is expected to occur within 90 days. Access is expected to be similar to other branded AEDs and EPIDIOLEX is expected to be available to appropriate patients by Fall 2018.

Marapharm Ventures

Marapharm Ventures Inc.  (MRPHF)  announced that it has entered into a Letter of Intent dated June 21, 2018 to purchase all the shares of  Full Spectrum Medicinal Inc. Marapharm will have until September 30, 2018, to conduct due diligence on Full Spectrum, with a view to negotiating the terms of a definitive agreement in order to complete the transaction. The company did not provide a valuation for the proposed transaction.

In Other News

Harvest One Cannabis Inc.

Harvest One Cannabis Inc. (TSXV: HVT) has signed a binding Share Sale Agreement with Australian-based MMJ PhytoTech Limited for the purchase of 100% of Israeli-based PhytoTech Therapeutics Ltd. The transaction will be a combination of cash and shares. Upon completion, $1 million in cash and $7 million in Harvest One common shares issued at the then 10-day volume weighted average closing price, will be paid to MMJ.

Cronos Group Inc.

Cronos Group Inc. (CRON)  announced that it entered into a strategic distribution partnership with privately owned pharmaceutical wholesaler Delfarma Sp. Zo.o. Founded in 2004, Delfarma was the first company in Poland to introduce international parallel import of medicinal products from European Economic Area countries. Delfarma distributes directly to over 5,000 pharmacies and more than 200 hospitals, a distribution network that reaches approximately 40% of the Polish domestic market.

Hiku Brands

Hiku Brands (HIKU.CN) announced that it has been granted permission for ten stores by the Province of Manitoba. Four of the stores will be located in Winnipeg and one in Brandon, all of which will be opened under our award-winning cannabis retail brand Tokyo Smoke, winner of Cannabis Brand of the Year at the 2017 Canadian Cannabis Awards.

Hiku is actively working with various regulators, provincial and municipal governments in the Province of Manitoba to obtain the necessary permits for our proposed Tokyo Smoke stores and will ensure location specific permission prior to announcing our chosen locations. This announcement is in addition to Hiku’s announcement on June 22, 2018 on the update for Alberta retail storefronts which detailed how Hiku has filed applications for more than a dozen storefronts in Calgary and are at the top of the list to be considered in each of those locations following Calgary’s first come, first serve approach to licensing.  As previously announced, Hiku has also entered into a letter of intent with Oceanic Releaf Inc., a late-stage applicant under the ACMPR in Newfoundland & Labrador, pursuant to which Oceanic and Hiku are working with the government on the approval for Oceanic of up to 5 additional stores in that province.

 

 


Debra BorchardtDebra BorchardtMay 15, 2018
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Cronos Group Inc. (CRON) reported that its first-quarter total sales rocketed 473% to $2.9 million versus last year’s $0.5 million. Sequentially, sales jumped by 83% from the fourth quarter of 2017 to $1.3 million in the first quarter of 2018.

The stock was rising by 4% in early trading to approximately $6.85 after beating analysts’ expectations for revenue of C$3.6 million or $2.8 million by today’s currency exchange according to Yahoo Finance. Three analysts had given their estimates for the quarter. Five analysts cover the Canadian stock and have an average target price of C$7.95 or $6.19.

Still, the company reported a net loss of $1 million versus last year’s net loss of $844,000. The net loss per share was one cent, the same last year’s net loss of one cent per share for the same time period. Cronos did report a gross profit of $1.9 million for the quarter, an improvement over the prior year’s $1 million.

“We are pleased that the strategic initiatives launched in 2017 are coming to fruition,” said Mike Gorenstein, CEO of Cronos Group. “2017 was a building block year which set the groundwork and foundation for the results achieved in the first quarter. Cronos is focused on continuing to increase capacity in order to serve existing distribution and newly established markets, developing intellectual property and launching recreational brands.”

The first quarter was punctuated with the company becoming the first licensed producer to list on the NASDAQ (NDAQ) exchange in February. The company now has a market capitalization of $1 billion, which isn’t too shabby for a company with current sales of less than $3 million a quarter.

Looking Ahead

Investors though are buying into the company’s future. The 28,000 square foot greenhouse at Peace Naturals is expected to deliver its first harvest in the second quarter of 2018. Plus, Peace Naturals was completely rebranded and received a dealers license from Health Canada. So, the company is expecting big things from this brand.

In addition to that, Cronos entered into a strategic joint venture with the U.S.’s MedMen to create MedMen Canada to create a Canadian branded retail chain.

Since the quarter ended, Cronos raised $100 million in gross proceeds through a bought deal offering n April.


Debra BorchardtDebra BorchardtApril 30, 2018
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Cronos Group Inc. (CRON) announced financial results for the fourth quarter and fiscal year ended December 31, 2017, with fourth-quarter sales of $1.6 million, an increase of 274%. Annual sales for fiscal 2017 were $4.1 million, a 636% increase over 2016’s $554,000.

The company also recorded a gross profit for 2017 of $7.2 million versus 2016’s gross profit of $1.9 million. The net income for 2017 was $2.4 million, which was a nice improvement over 2016’s net loss of $1.1 million. The diluted net income per share for 2017 was one cent per share versus 2016’s loss of two cents per share.

“We are building Cronos Group with a focus on the long-term and 2017 set the foundation for the explosive growth we have already started realizing in 2018,” said Mike Gorenstein,” CEO of Cronos Group.  “We are extremely proud of all that our team has accomplished and look forward to a year of rapid increases in sales, commencing distribution in new markets, further developing disruptive intellectual property and launching new iconic brands.”

Beacon Securities analyst Vahan Ajamian said, “Revenue for the quarter was $1.6MM – right in the middle of the implied range previously provided of $1.3-$1.9MM, but below our forecast of $1.8MM and the other analyst’s forecast of $2.0MM.”

Sales increased by $3.5 million, or 636%, to $4.1 million in FY 2017. The average selling price of whole flower is $8.50 per gram and processing costs are estimated to be $0.82 per gram with selling costs estimated to be $0.97 per gram. Cronos strengthened liquidity by $89.6mm, including a $40.0mm senior secured credit facility and $49.6mm in gross proceeds from three common share offerings.

So far in 2018, the company listed on the NASDAQ exchange and announced a joint venture with MedMen in the U.S.

Cronos also put a lot of effort into the rebranding of Peace Naturals with new packaging, a new logo, a revised website, a new shopping portal experience, and new products such as strain-specific oils and limited edition cultivars.

In addition, Cronos launched Peace Naturals strain-specific cannabis oils without using ethanol. In a company statement, Cronos said, “This is important because of the “entourage effect,” or the concept that all cannabis compounds work together synergistically to yield the desired therapeutic effect.”  On January 22, 2018, Peace Naturals received a dealer’s license pursuant to the Narcotic Control Regulations and CDSA from Health Canada for the possession, sale, transportation, and delivery of controlled substances including cannabis, tetrahydrocannabinol and cannabidiol.  The license allows Peace Naturals to export medical cannabis extracts, including concentrated oil and resin products, internationally.

International

The company said that 15% of its sales came from Germany. On the earnings call, the company said that everything was on track for Israel and while there has been market noise about disruptions, they have not experienced any. Cronos launched a strategic joint venture in Israel, with Israeli agricultural collective settlement Kibbutz Gan Shmuel to produce and distribute medical cannabis.The company announced a strategic joint for a venture in Australia for the research, production, manufacture, and distribution of medical cannabis and it owns a 50% equity interest in Cronos Australia.

Stock Performance

There are currently three analysts covering the company according to Yahoo Finance with an average price target of C$7.85 for the stock trading on the Toronto Exchange. That stock is currently trading at C$8.88. The stock on the NASDAQ exchange was lately trading at $7.14, down from its 52-week high of $10.39, but higher than its year low of $5.12.

 


Video StaffVideo StaffMarch 23, 2018

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It is definitely earnings season as companies begin to report their numbers.

Terra Tech (TRTCD) delayed its earnings announcement from Thursday to Friday following the market close. On Friday the stock closed $3.77, but then on Monday after the investors digested the news, the stock fell to a close of $3.24 and was down to $3.11.

Full-year revenues for 2017  increased 41% to $35.80 million over 2016’s $25.33 million. But Terra Tech delivered a net loss of $32.68 for 2017, which was an increase over last year’s loss of $26.72 million.

CanniMed Therapeutics (CMMDF) reported that its sales rose 41% to $4.8 million from last year’s $3.4 million for the same time period. The company said that rising demand for dried medical cannabis caused those sales to jump 33% to 455kg with an average selling price of $10.56. as you know Aurora Cannabis is acquiring CanniMed.

AXIM Biotechnologies (AXIM) reported fiscal 2017 full-year results, with CEO Dr. George Anastassov highlighting “solid progress” the company is making on its clinical pipeline, including it getting a mass-market chewing gum to help cancer patients with nausea and vomiting.The company lost 8 cents a share, compared to a loss of 17 cents in fiscal 2016. In addition to the chewing gum.

Two of the largest cannabis companies in the world are joining forces to form a first of its kind venture. On March 19, 2018, Cronos Group Inc. and MedMen announced that they have entered into an agreement to form a cross-border joint venture.

MedMen has 18 production facilities operating in 3 states and owns the largest dispensary chain in California, Most recently, Cronos became the first pure-play cannabis company to become listed on the NASDAQ Exchange (NDAQ).

Cronos also announced $100 million bought deal selling 10,420,000 shares at a price of $9.60 each. The money will be used for expansion, general working purposes, and new investment opportunities.

Online vaporizer site Greenlane formerly known as VapeWorld, acquired its competitor, VaporNation. Greenlane is now one of the world’s largest vaporizer distributors. With this recent acquisition, the company will expand its footprint to include eight US Cites, six automated distribution centers, and approximately 200 hundred employees.

Gene Simmons, best known for being the bassist and co-lead singer of the rock band Kiss and a reality TV star, is finally getting his own marijuana company – albeit with a catch. Invictus Md Strategies announced on Tuesday that Simmons will be the company’s Chief Evangelist Officer. And  the new ticker symbol is now GENE. The company’s previous ticker symbol was IMH.

Simmons owns a significant percentage of the company and will also make appearances for the company, specifically at the annual general meeting, investor meetings, trade shows, as well as serving as the company’s spokesperson.

 

 


William SumnerWilliam SumnerMarch 19, 2018
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Two of the largest cannabis companies in the world are joining forces to form a first of its kind venture. On March 19, 2018, Cronos Group Inc. (CRON) and MM Enterprises USA, LLC announced that they have entered into an agreement to form a cross-border joint venture.

MM Enterprises USA, LLC (MedMen) is a cannabis company with 18 production facilities operating in three US states and owns the largest cannabis dispensary chain in California. Similarly, Cronos Group is a licensed Canadian cannabis producer and distributor with business interests in Germany, Israel, and Australia. Domestically, Cronos owns two cannabis production facilities: Peace Naturals Project Inc. and Original BC Ltd. Most recently, Cronos became the first pure play cannabis company to become listed on the NASDAQ exchange.

The joint venture will be called MedMen Canada Inc. (MedMen Canada). Focusing on the development of branded products and dispensaries, the 50/50 joint venture will leverage Cronos’ access and reach in the Canadian market along with MedMen’s brand recognition and expertise in the retail cannabis experience.

To that end, MedMen Canada will utilize Cronos’ cannabis production facilities, totaling 350,000 square feet, as well as any future expansions that the company may have. MedMen Canada will only operate in areas where cannabis is federally legal and in compliance with any applicable regulations.

“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 in a statement. “We always take a very disciplined and focused approach to our growth, and it was important that we find the right partner for our expansion into Canada. Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They have the right infrastructure and expertise to successfully execute this venture.”

MedMen is also preparing to become a public company in the Canadian market. The company said it hopes to accomplish this sometime in the second quarter of this year.

On May 21, 2018, Green Market Report will work with MedMen as a media partner during the 2nd Annual Institutional Capital & Cannabis Conference (West) in Los Angeles, California; with GMR’s very own Debra Borchardt leading the panel “Crystal Balling The Future of Cannabis.”


Debra BorchardtDebra BorchardtFebruary 26, 2018
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Canadian-based cannabis company Cronos Group announced that it expects that its common shares will begin trading on Nasdaq on February 27, 2018, under the trading ticker symbol “CRON.” Cronos Group will retain its listing on the TSX Venture Exchange  under the symbol “MJN.”

“This uplisting to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint,” said Mike Gorenstein, CEO of Cronos Group. “We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”

Nasdaq has yet to respond to a request for a comment. The exchange has been reluctant to list cannabis companies on its exchange. The only related companies have been biotech names like GW Pharmaceuticals (GWPH) and Insys Therapeutics (INSY), Corbus Pharmaceuticals (CRBP), Cara Therapeutics (CARA), Zynerba Pharmaceuticals (ZYNE) and Arena Pharmaceuticals (ARNA).

While High Times Media (formerly Origo)has been fighting to remain listed at the exchange, Nasdaq has continued to reject the company only to face appeals by High Times to remain. Nasdaq attempted to delist Origo in February of 2017 for not meeting the listing requirements of 300 shareholders. Origo submitted a plan to accomplish this in April of 2017 and Nasdaq granted an extension. In October 2017,  Nasdaq agreed to allow Origo to continue listing the shares on Nasdaq through February 2018 in order to complete the merger. Then last month, Nasdaq said that Origo’s failure to hold an annual meeting for the fiscal year ending November 30, 2016, served as an additional reason to delist the shares. Once again, Origo responded and for now, Nasdaq has agreed to let the shares remain at least until the February date or upon review following the merger, whichever comes first.

Cronos Group operates two wholly-owned Canadian Licensed Producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. ( Ontario ), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. ( British Columbia ), which is based in the Okanagan Valley. It has multiple international production and distribution platforms including Cronos Israel and Cronos Australia. Through an exclusive distribution agreement, Cronos Group has access to over 12,000 pharmacies in Germany.


Debra BorchardtDebra BorchardtJanuary 2, 2018
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Cronos Group Inc.  (PRMCF) announced that it has entered into a letter of engagement with PI Financial Corp.  as lead underwriter for a syndicate of other underwriters to purchase for resale 3,428,572 common shares of  Cronos on a “bought deal” basis  at a price per share of $8.75 for total gross proceeds of $30,000,005.00. The deal is expected to close on or about January 27.

According to the company statement, the underwriters will have an option to increase the size of the offering by up to 15% unless the offering size is increased, in which case the overallotment option will be 15% of the increased Offering. Cronos Group plans to use the proceeds for general corporate purposes, to fund growth, and for research and development.

Cronos Group is a geographically diversified and vertically integrated cannabis company that operates two wholly-owned Licensed Producers regulated within Health Canada’s Access to Cannabis for Medical Purposes Regulations and holds a portfolio of minority investments in other Licensed Producers. The Company’s flagship LPs, Peace Naturals Project Inc. ( Ontario ) and Original BC Ltd. ( British Columbia ), are collectively situated on over 125 acres of agricultural, licensed land. Cronos Group is focused on building an international iconic brand portfolio, providing patients with personalized care and creating value for our shareholders.

Just last week, the company announced that its first shipment of Peace Naturals branded products to G. Pohl-Boskamp GmbH & Co. KG became available for sale across retail locations throughout Germany. Pohl-Boskamp is an international pharmaceutical manufacturer with distribution into over 12,000 pharmacies in Germany.  Pohl-Boskamp’s distribution network provides Cronos access to patients with insurance coverage for medicinal cannabis. “This marks a key milestone for Cronos by solidifying the largest international distribution platform in the industry and providing an unprecedented supply of high-quality medical cannabis products to German patients,” said Mike Gorenstein, CEO of Cronos.

The stock was lately trading at $7.72 on the OTC Marketplace. This is at its 52-week high, which has been in a range of 29 cents to $7.21.


StaffStaffNovember 29, 2017
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Toronto-based Cronos Group Inc. (PRMCF)  reported financial results for the third quarter ended September 30, 2017. The company delivered $1.3 million in revenue for an increase of 104% quarter-over-quarter and an increase of 962% over last year’s $123,647.

Net income was reported at $1.0 million, which was a nice jump over last year’s loss of $227,607. The diluted earnings per share were one cent, which was also higher than last year’s zero earnings per share.

“We have successfully transformed the Company over the past year and a half. We are now focused on executing our strategy to generate accelerated revenue growth and create long-term shareholder value,” says Mike Gorenstein, CEO of Cronos Group.

According to the company statement, “As of September 30, 2017, it is expected that the Company’s biological assets will yield approximately 489.3 kg of medical cannabis (December 31, 2016 -213 kg). As at September 30, 2017, the Company held 597.2 kg of finished goods (December 31, 2016 – 236 kg) and 0.298 kg of seeds in raw material (December 31, 2016 – 0.298 kg), and has 4,065 plants that are biological assets (December 31, 2016 – 2,558 plants).”

Cronos Looks Ahead

Cronos is constructing additional capacity at the  Peace Naturals Project, Inc. with a 286,000 sq. ft. production facility, which is on schedule and a 28,000 sq. ft. greenhouse.   Production from the new facility is expected to begin in the second half of 2018.  The Peace Naturals Greenhouse is expected to be operational in Q4 2017 and fully-operational for production in the first half of 2018.

In November 2017, Health Canada approved Crono’s extraction laboratory at Peace Naturals, which uses supercritical and subcritical CO2 and commercial oil production methodologies.  The resulting increased oil production will facilitate the introduction of new formulations, such as capsules, tinctures, and ointments.  The company’s statement said that by quarter-end, it released a number of new strain-specific cannabis oils that have been received favorably by patients.  “As Cronos continues to place an emphasis on product quality, this production methodology for extracted products is expected to create an ongoing competitive advantage in the marketplace,” said the statement.

Preparing For Adult-Use Market

Cronos Group is preparing for the anticipated legalization of the Canadian recreational market, that is expected to be launched in July 2018. Cronos rebranded its wholly-owned subsidiary and licensed producer In The Zone Ltd. to Original BC Ltd which will serve as the Company’s recreational cannabis platform from which it will launch its recreational brand portfolio.

Financing Update

Since the beginning of Q3 2017, Cronos Group has raised $72.3 million to fund its operations and capacity expansion plans.  The company statement read, “Total capital raised includes: (i) a $40.0mm senior secured credit facility, the largest straight debt offering in the cannabis industry to date, based on publicly available information, and (ii) several equity raises at increasing share price levels.  In order to minimize equity dilution, the company did not issue convertible notes or warrants in connection with these financings.”

 

 



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