TORONTO, April 6, 2018 /CNW/ - Cronos Group Inc. (NASDAQ,
TSX-V: CRON) ("Cronos Group" or the "Company") is pleased to
announce that it has closed its previously announced bought deal
public offering. A total of 10,420,000 common shares of Cronos
Group (the "Shares") were sold at a price of $9.60 per Share for aggregate gross proceeds of
approximately $100.0 million (the
"Offering").
The Offering was underwritten by a syndicate co-led by GMP
Securities L.P. and BMO Capital Markets and including Cormark
Securities Inc., Beacon Securities Limited and PI Financial
Corp.
The Company intends to use $15.0
million of the net proceeds of the Offering for capital
expenditures relating to international operations and capacity
expansion, and the remaining net proceeds of the Offering for
general working capital purposes, including working capital for the
Company's international operations, and as capital on hand for
potential new investment opportunities.
The Shares were offered by the Company pursuant to the Company's
effective registration statement on Form F-10 filed with the U.S.
Securities and Exchange Commission (the "SEC") and its
corresponding Canadian short form prospectus filed with the
securities regulatory authorities in each of the provinces of
Canada other than Québec (the
"Securities Commissions"). A final short form prospectus was filed
with the SEC and the Securities Commissions on March 29, 2018 (the "Prospectus"). The Prospectus
may be accessed for free by visiting EDGAR on the SEC website at
http://www.sec.gov or via SEDAR at www.sedar.com. Alternatively,
the Company, any underwriter or any dealer participating in the
Offering will arrange to send you the Prospectus if you request it
from GMP Securities L.P. by calling toll-free at 1 (888) 301-3244
or by email at GMPECMProspectusDistribution@gmpsecurities.com or
from BMO Capital Markets, Brampton Distribution Centre C/O The Data
Group of Companies, 9195 Torbram Road, Brampton, Ontario L6S 6H2 by calling (905)
791-3151 ext: 4312 or by email at
torbramwarehouse@datagroup.ca.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy any common shares, nor there be any
sale of common shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
All references to "$" in this press release are to Canadian
dollars.
About Cronos Group
Cronos Group is a globally diversified and vertically integrated
cannabis company with a presence across four continents. The
Company operates two wholly-owned Canadian Licensed Producers
regulated under Health Canada's Access to Cannabis for Medical
Purposes Regulations: Peace Naturals, 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. The
Company has multiple international production and distribution
platforms including: Germany,
Israel and Australia. The Company is rapidly expanding
its global footprint as it focuses on building an international
iconic brand portfolio and developing disruptive intellectual
property. Cronos Group is committed to building industry leading
companies that transform the perception of cannabis and responsibly
elevate the consumer experience.
Forward-looking statements
This news release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and U.S. securities laws. All information contained herein
that is not clearly historical in nature may constitute
forward-looking information. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive risks,
uncertainties and contingencies that may cause actual financial
results, performance or achievements to be materially different
from the estimated future results, performance or achievements
expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future
performance.
Forward-looking statements in this news release include, but are
not limited to, information relating to the use of proceeds of the
Offering. The intended use of the proceeds of the Offering may
change if Cronos Group elects to allocate proceeds differently from
that described in this news release. Except as required by law,
Cronos Group disclaims any obligation to update or revise any
forward-looking statements. Readers are cautioned not to put undue
reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cronos Group Inc.