/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
TORONTO, Jan. 2, 2018
/CNW/ - Cronos Group Inc. (TSX VENTURE: MJN) ("Cronos" or the
"Company") is pleased to announce that it has entered into a
letter of engagement with PI Financial Corp. ("PI") as lead
underwriter on behalf of a syndicate of underwriters (together, the
"Underwriters") under which the Underwriters have agreed to
purchase for re-sale 3,428,572 common shares of the Company (the
"Shares") on a "bought deal" basis pursuant to the filing of a
short form prospectus, subject to all required regulatory
approvals, at a price per Share of $8.75 (the "Offering Price") for total gross
proceeds of $30,000,005.00 (the
"Offering").
The Company will grant the Underwriters an option to increase
the size of the Offering by up to 15% of the initial Offering size
(the "Over-Allotment Option") unless the Offering size is
increased, in which case the Overallotment Option will be 15% of
the increased Offering. The Over-Allotment Option may be
exercised in whole or in part by written notice to the Company at
any time up to 30 days following the Closing Date.
The Company intends to use the net proceeds of the Offering for
general corporate purposes, to fund growth, and for research and
development.
The closing date of the Offering is scheduled to be on or about
January 27, 2018 and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals, including the approval of the TSX Venture
Exchange and the applicable securities regulatory authorities.
The Shares will be offered by way of a short form prospectus to
be filed in all of the provinces of Canada, except for Quebec, pursuant to National Instrument 44-101
- Short Form Prospectus Distributions. PI may choose, in its
discretion, to sell the Offering in the
United States through its U.S. brokerage affiliate to
investors who qualify under U.S. prospectus exemptions, and the
Company will assist in this regard as reasonably requested. Any
Shares sold in the United States
will be to investors in reliance upon applicable registration
exemptions (Rule 144A of the United
States Securities Act of 1933, as amended and rule
506 of Reg. D).
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 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.
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, the Company 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 the Company from third parties and 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.