Cronos Group, a Canadian based publicly traded company has the option to acquire 10.5% of the outstanding shares of Aphria, an Ontario based publicly traded company, for an aggregate consideration of $110.4 million. The Cronos Group will pay for the acquisition of the shares through a combination of cash and common shares.

Cronos Group has announced an agreement to acquire 10.5% of Canopy Growth Corporation (TSX: WEED) from CTT Pharmaceuticals Inc. (TSX: CTT). The price of the option was $110.4 million. Canopy Growth has been experiencing tremendous growth since its inception in 2014. With Canadian medical marijuana sales expected to top $1 billion this year, Cronos Group is excited to join hands with one of the largest and most respected companies in the global cannabis industry.

Cronos Group (CSE: MJN.V) (CNSX: MJN) (OTC: PRMCF) (FRA: 0MF) and MedReleaf (TSX: LEAF) (OTC: MEDFF) (FRA: 0MPZF) have announced that they have entered into an option agreement for Cronos to acquire a 10.5% interest in MedReleaf. The option was granted to Cronos as consideration for the investment in MedReleaf referred to above, which is expected to close at the end of November 2017.. Read more about cronos group stock and let us know what you think.Cronos Group Pays $110.4 Million for Option to Acquire 10.5% of…

Cronos Group announces strategic investment in PharmaCann, a leading US cannabis company
  • With this investment, Cronos Group is expected to benefit from the rapid growth of the cannabis market in the United States.
  • PharmaCann is well positioned in states with limited licensing in the Midwest and Northeast.

TORONTO and CHICAGO, June 20, 2021 (GLOBE NEWSWIRE) – Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (Cronos Group) and PharmaCann Inc. (PharmaCann), one of the largest vertically integrated cannabis companies in the United States (U.S.), today announced an agreement whereby a wholly owned subsidiary of Cronos Group has acquired an option (the Option) to acquire an approximate 10.5% interest in PharmaCann (the Transaction) on a fully diluted basis. The exercise of the option is subject to various factors, including the status of federal legalization of cannabis in the United States and regulatory approvals, including in the states in which PharmaCann operates, which may be required upon exercise of the option. PharmaCann has a broad geographical presence in the United States and has built an efficient, effective and scalable business model with six manufacturing sites and 23 distribution sites operating under the Verilife™ brand name in six states with limited licenses: New York, Illinois, Ohio, Maryland, Pennsylvania and Massachusetts. PharmaCann continues to invest in manufacturing infrastructure and brand development to take advantage of significant consumer and wholesale opportunities. Our U.S. growth strategy is designed to create long-term shareholder value by building a world-class brand and portfolio of intellectual property and by positioning ourselves to bring our products to the U.S. market through investments and opportunities with leading U.S. companies that share our vision and commitment to responsibly distribute groundbreaking cannabinoid products that improve lives.

Kurt Schmidt, Chairman and CEO of Cronos Group

Cronos Group Pays $110.4 Million for Option to Acquire 10.5% of… PharmaCann appealed to us as an investor because of its disciplined capital allocation, strong track record and attractive network of licensees and retailers. Additionally, we are excited to partner with PharmaCann because we share the same commitment to improving product quality and consistency through world-class science and manufacturing, Schmidt added. We are pleased to announce our strategic alliance with Cronos Group. This investment confirms our position as the leading vertically integrated cannabis company in the U.S. and underscores our ability to continue to grow and build on our strong asset base.

Brett Novay, Chief Executive Officer, PharmaCann

Cronos Group Pays $110.4 Million for Option to Acquire 10.5% of… We are pleased to partner with Cronos Group to further PharmaCann’s mission to improve lives through cannabis. Conditions of the Agreement Under the terms of the transaction, Cronos Group paid a total of approximately $110.4 million for the option, which was deposited by Cronos Group into the account of a third-party payment agent for direct distribution to PharmaCann shareholders. The option is subject to certain anti-dilution measures and other adjustments. At Cronos Group’s request and upon exercise of the option, Cronos Group and PharmaCann will enter into commercial agreements that will allow each party to offer its products through the other party’s distribution channels. In addition, at the request of the Cronos Group and PharmaCann and upon exercise of the Option, the Cronos Group and PharmaCann will enter into an Investor Rights Agreement granting the Cronos Group certain management rights, such as. B. a seat on the supervisory board or observer status under certain conditions, as well as a registration rights agreement granting the Cronos Group ordinary registration rights on PharmaCann ordinary shares. Michael Gorenstein, executive chairman of Cronos Group, and Jason Adler, a director of Cronos Group, indirectly own an interest in PharmaCann through their participation in a fund affiliated with Gotham Green Partners, which is a shareholder of PharmaCann. An ad hoc committee, consisting solely of independent Cronos Group directors, was formed to evaluate the transaction and other opportunities in the United States and to make recommendations to the Cronos Group Board of Directors. The Transaction was approved by the Board of Directors of PharmaCann and the required shareholders of PharmaCann and was approved by the Board of Directors of Cronos Group (excluding Messrs. Gorenstein and Adler) upon the unanimous recommendation of a special committee of independent directors. Cowen acted as financial advisor to Cronos Group’s Special Committee of Independent Directors, and Sullivan & Cromwell LLP and McGuireWoods LLP acted as legal advisors to Cronos Group. Perella Weinberg Partners LP acted as financial advisor to Altria Group, Inc. Canaccord Genuity Corp. acted as financial advisor and Fox Rothschild LLP as legal counsel to PharmaCann. About the Cronos Group Cronos Group is an innovative global cannabinoid production and distribution company operating on five continents. Cronos Group is committed to creating groundbreaking intellectual property by advancing cannabis research, technology and product development. Passionate about a responsible approach to improving the consumer experience, the Cronos Group is building a portfolio of iconic brands. Cronos Group’s portfolio includes PEACE NATURALS™, a global wellness platform, two adult-use brands, COVE™ and Spinach™, and three US CBD hemp brands, Lord Jones™, Happy Dance™ and PEACE+™. For more information about Cronos Group and its brands, visit: thecronosgroup.com. About PharmaCann PharmaCann is one of the largest privately held, vertically integrated companies in the country providing safe, reliable, high-quality cannabis products for the medical and adult use markets. PharmaCann’s geographic presence includes clinics and cultivation and processing facilities in six states. More information about PharmaCann is available on the website: PharmaCann.com. Original press release Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. Cronos Group Pays $110.4 Million for Option to Acquire 10.5% of… Cronos Group Pays $110.4 Million for Option to Acquire 10.5% of… New Cannabis Ventures is committed to gathering quality content and information about leading cannabis companies to help our readers filter through the noise and stay informed about the most important news in the field. Do you have sensitive information? Please contact us.

 

Cronos Group (TSX: MJN) today announced that it has entered into an option agreement with the company’s holding company, Cronos Group Inc., for the acquisition of 10.5% of the issued and outstanding shares of Ginko (CSE: GKO). The option agreement is exercisable for a period of 18 months at a purchase price of $2.75 per share, subject to customary adjustments.. Read more about pharmacann stock and let us know what you think.

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