Staff
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) entered into a credit agreement with Canadian Imperial Bank of Commerce and the Bank of Montreal for a $65 million secured non-revolving term loan credit facility. The Canadian-based cannabis company said it plans to use the funds to repay the Company’s existing loan facility with Romspen Investment Corporation and for general corporate purposes pending the closing of the previously announced equity investment by Altria Group, Inc.
Cronos said in the statement that the credit facility will mature on July 23, 2019, unless extended to September 7, 2019, with the consent of the Lenders. The credit facility may be increased by up to an additional maximum aggregate principal amount of $15 million.
The Investment remains on track to close in the first half of 2019 and is subject to certain customary closing conditions, including the receipt of regulatory approval under the Investment Canada Act and approval by at least a majority of the votes cast by holders of common shares of the company at the special meeting of shareholders scheduled for February 21, 2019.
