Debra Borchardt
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.
