- Cronos Group (CRON) has made an investment in PharmaCann, a leading U.S. cannabis company
- PharmaCann has six production facilities in the U.S. and 23 dispensaries operating under the Verilife brand across six limited-license states
- As per their agreement, a wholly-owned subsidiary of Cronos Group purchased an option to acquire a 10.5 per cent interest in PharmaCann
- Cronos paid approximately C$110.4 million for the option
- Cronos Group is a global cannabinoid company with international production and distribution across five continents
- Cronos Group (CRON) is down by 1.2 per cent and is currently trading at $10.69 per share
Cronos Group (CRON) has made an investment in PharmaCann, a leading U.S. cannabis company.
PharmaCann has six production facilities in the U.S. and 23 dispensaries operating under the Verilife brand across six limited-license states: New York, Illinois, Ohio, Maryland, Pennsylvania and Massachusetts.
As per their agreement, a wholly-owned subsidiary of Cronos Group purchased an option to acquire a 10.5 per cent ownership stake in PharmaCann on a fully diluted basis.
Cronos paid approximately C$110.4 million for the option.
Cronos Group and PharmaCann may enter into commercial agreements that permit each party to offer its products through either party’s distribution channels.
The companies intend on entering into an investor rights agreement that would provide Cronos with certain governance rights, such as a board seat or board observer subject to certain conditions.
Exercising the option depends on the status of U.S. federal and state cannabis legalization.
Kurt Schmidt, President and CEO of Cronos Group, commented,
“Our U.S. growth strategy focuses on delivering long-term shareholder value by assembling a best-in-class brand and intellectual property portfolio, and positioning to deploy our products in the U.S. market through investments and opportunities with U.S. leaders who share our vision and commitment to responsibly distribute disruptive cannabinoid products that improve people’s lives.
We were attracted to PharmaCann as an investment because of their disciplined capital allocation, strong track-record and compelling licensed manufacturing and retail footprint.”
Brett Novey, PharmaCann’s CEO, added,
“We are pleased to announce our strategic alliance with Cronos Group. This investment validates our position as a leading vertically integrated U.S. cannabis company and highlights our ability to continue to expand and enhance our strong asset base.”
Cronos Group is a global cannabinoid company with international production and distribution across five continents.
Cronos Group (CRON) is down by 1.2 per cent and is currently trading at $10.69 per share as of 2:45 pm ET.