TORONTO, Sept. 6, 2017 /CNW/ - Cronos Group Inc. (TSXV:
MJN) (OTC: PRMCF) ("Cronos" or the "Company") is pleased to
announce that the Company has entered into a strategic joint
venture ("Cronos Israel") with Kibbutz Gan Shmuel ("Gan Shmuel")
for the production, manufacture and global distribution of medical
cannabis. Gan Shmuel is one of the largest and most
sophisticated kibbutzim in Israel,
producing and exporting a variety of products to 35 countries
throughout Europe and Asia.
Israel has an ideal climate for
growing cannabis with abundant light to support year-round
greenhouse cultivation without the need for supplemental flower
lighting. The Israeli climate, combined with Gan Shmuel's existing
manufacturing infrastructure and skilled labor force, will enable
Cronos Israel to produce high quality medical cannabis at an
expected cost of between $0.40 and
$0.50 per gram.
"Gan Shmuel is one of the most established kibbutzim, with
extensive experience in agriculture, large scale manufacturing and
export. This partnership allows Cronos to efficiently scale
low cost, high quality production to meet global demand," said
David Hsu, COO of Cronos.
Phase One of Cronos Israel involves the construction of a
45,000-sq. ft. greenhouse that is expected to produce up to 5,000
KG annually. This will be paired with a separate 11,000-sq. ft.,
extraction laboratory that will be utilized for analytics,
formulation development, and research. In Phase Two, Cronos Israel
plans to increase production capacity to 24,000 KG annually.
Gan Shmuel is situated on 4,939 acres of mixed-use
agricultural/industrial land, which gives Cronos Israel the ability
to expand production capacity well beyond 100,000 KG annually with
its anticipated future build-outs.
Cronos Israel designed the facility to meet the Company's
best-in-class quality standards, including Good Production
Practices and Good Manufacturing Practices (GMP). Cronos'
expertise operating under these guidelines will ensure that all
quality controls across the Company's international platforms are
consistent with the highest manufacturing standards.
Earlier this year, the Israeli Health Ministry's medical
cannabis agency (the "Yakar") granted Gan Shmuel four codes to
establish four distinct commercial operations: (1) propagation and
breeding ("Nursery"), (2) commercial cannabis cultivation
("Cultivation"), (3) extraction, formulation and packaging
("Manufacturing"), and (4) patient care and distribution
("Distribution"), (collectively, the "Codes"). Cronos will
contribute intellectual property, management expertise, access to
its current and future distribution channels, and capital to Cronos
Israel. Gan Shmuel will contribute the Codes, agricultural
and industrial expertise, land, capital and access to the skilled
Gan Shmuel labor force. Cronos will hold a 70% stake in each
of the Nursery and Cultivation operations and a 90% stake in the
Manufacturing and Distribution operations.
"This isn't just about becoming the lowest cost producer in the
world. Establishing a major operation in Israel gives us frontline exposure to leading
medical cannabis research and innovation. Cronos Israel is a
significant step in raising the standard of medical cannabis
globally," said Mike Gorenstein, CEO
of Cronos.
Cronos Israel is subject to final approvals, including the
approval of the TSXV.
A conference call to discuss Cronos Israel will be held at
8:30 am (EST). The call will be
open to the public.
Members of the public who would like to listen to the conference
call should dial +1-888-231-8191 (in Canada) or +1-647-427-7450 (outside of
Canada). The number should
be dialed at least 5 minutes prior to the start of the conference
call. For those unable to listen to the live broadcast, a
replay will be available by dialing +1-855-859-2056 passcode number
82023991 beginning approximately two hours after the event.
About Cronos Group
Cronos Group is a geographically diversified and vertically
integrated cannabis company that operates two wholly-owned Licensed
Producers ("LPs") regulated within Health Canada's Access to
Cannabis for Medical Purposes Regulations (the "ACMPR") and holds a
portfolio of minority investments in other Licensed Producers. The
Company's flagship LPs, Peace Naturals Project Inc. (Ontario) and In The Zone Produce 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 compassionate and
personalized care, and creating value for our shareholders.
About Gan Shmuel
Founded in 1921, Gan Shmuel has over 1,000 members and spans
across 4,939 acres, making it one of the largest Kibbutzim in
Israel. Gan Shmuel operates a variety of businesses
including: Gan Shmuel Foods (TLV: GSFI), a commercial
shopping mall and supermarket, a koi breeding farm, orchards,
cattle farms, a distribution company, a manufacturing factory for
cheese and meat and a commodity trading company. Gan Shmuel
is a traditional kibbutz, based on principles of joint property
ownership, equality and cooperation in production.
Forward-looking statements
This news release may contain "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian securities legislation. 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. 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. This news release contains information
obtained by Cronos Group from third parties. Cronos Group believes
such information to be accurate but has not independently verified
such information.
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.
For more information, please visit www.thecronosgroup.com.
SOURCE Cronos Group Inc.