Increased Revenues 186% and Kilograms Sold
213% Year-over-Year
Licensed and Commenced Cultivation in Building
4
Announced Landmark Partnership with Ginkgo
Bioworks to Produce Cultured Cannabinoids
Launched Mainstream Recreational Brand
Spinach™
Created NatuEra, the First Cannabis CMO in
Latin America and Received
Non-Psychoactive Plant License
TORONTO, Nov. 13, 2018 /CNW/ - Cronos Group Inc.
(NASDAQ: CRON) (TSX: CRON) ("Cronos Group" or the
"Company"), today announced financial results for the third
quarter ended September 30, 2018.
"We are encouraged with our third quarter results, which reflect
the meaningful progress we are making on our strategic initiatives.
In the quarter, we announced a number of landmark partnerships to
expand our reach beyond the flower and beyond Canada and launched our second differentiated
recreational cannabis brand," said Mike
Gorenstein, CEO of Cronos Group. "The recent legalization of
cannabis sales for adult recreational use in Canada was a watershed moment for our industry
and our Company. We are energized by the opportunities this creates
for Cronos Group in Canada and
look forward to leading the industry forward responsibly."
"As excited as we are about this milestone and our participation
in this new market, it's truly just the beginning. Cronos Group is
building an innovative global cannabinoid company. The
opportunities for our Company extend across the globe as
regulations evolve and markets open. The recent initiatives we
launched with Gingko Bioworks and Technion are great examples of
how we intend to use innovation and our growing intellectual
property portfolio to develop new applications for cannabinoids
across a range of categories. We are proud of all that we
accomplished this quarter, and we are focused on executing on our
strategic plan to drive growth and value creation for our
shareholders, partners and consumers," concluded Mike Gorenstein.
Third Quarter 2018 Business Highlights
- Construction of Building 4, a 286,000 sq. ft. purpose-built
indoor production facility built to GMP standards, is complete.
Building 4 is expected to become fully operational in phases. The
facility commenced cannabis cultivation after receiving its license
on August 31, 2018. The first harvest
from Building 4 is expected by year end 2018.
- Cronos Group and Ginkgo Bioworks, Inc. ("Ginkgo")
announced a landmark partnership to produce cultured cannabinoids
through fermentation that are identical to those extracted from the
cannabis plant. The research and development partnership is focused
on producing large volumes of eight target cannabinoids, including
rare cannabinoids, from custom yeast strains by leveraging existing
fermentation infrastructure (i.e. breweries or pharmaceutical
contract manufacturing operations) without incurring significant
capital expenditures to build new cultivation and extraction
facilities. The Company will fund certain research and development
and foundry expenses expected to be approximately US$22.0 million, subject to the achievement of
certain milestones. In addition, tranches of Cronos Group's common
shares will be issued to Ginkgo, upon Ginkgo's demonstration that
the microorganisms are capable of producing the target cannabinoids
for less than US$1,000 per kilogram
of pure cannabinoid at a scale of greater than 200 liters. The
Company targets three years to achieve the equity milestones for
the eight target cannabinoids.
- In August 2018, the Company
announced a 50/50 strategic joint venture with an affiliate of
Agroidea SAS ("AGI"), a leading Colombian agricultural
services provider with over 30 years of research, development and
production operations and expertise managing industrial scale
horticultural operations in Colombia. This partnership establishes a newly
formed entity, NatuEra S.à r.l. ("NatuEra"), in Colombia that will develop, cultivate,
manufacture and export cannabis-based medical and consumer products
for the Latin American and global markets. NatuEra is the cannabis
industry's first CMO in Latin
America, with plans to allow the growing number of cannabis
brands to outsource their cultivation and manufacturing. NatuEra
plans to develop its initial cultivation and manufacturing
operations with a purpose-built, GMP-standard facility located in
Cundinamarca, Colombia. NatuEra
was granted a license to cultivate non-psychoactive cannabis plants
for the production of seeds for planting and the manufacture of
derivative products. This license has an effective term of five
years from August 31, 2018. NatuEra
is awaiting the grant of licenses to cultivate psychoactive
cannabis and manufacture derivative products. Commencement of
operations at the facility will be subject to obtaining the
remaining appropriate licenses under applicable law.
- Cronos Group launched its mainstream recreational brand
Spinach™. A fun, lighthearted and playful brand, Spinach™ is
focused on offering Farm-To-Bowl™ products that bring friends
together and make experiences more enjoyable. This brand has High
Expectations™ and is geared towards a wide range of consumers that
don't take life too seriously and are looking for entertaining, fun
ways to enhance activities.
- In July 2018, Cronos Group
announced a 50/50 strategic joint venture with a group of investors
led by Bert Mucci, a leading
Canadian large-scale greenhouse operator. The entity created by
this new partnership, Cronos Growing Company Inc. ("Cronos
GrowCo"), expects to construct an 850,000 square foot,
purpose-built, GMP-standard greenhouse on approximately 100 acres
of land to be acquired by Cronos GrowCo in Kingsville, Ontario. Once fully operational,
the greenhouse is expected to produce up to 70,000 kilograms of
cannabis annually. Construction of the greenhouse has commenced and
is expected to be complete in the second half of 2019.
- Cronos Group entered into a supply agreement with one of the
largest cannabis companies in the world by revenues in the first
quarter of 2018, Cura Cannabis Solutions ("Cura"). Cura
signed a five year take-or-pay supply agreement to purchase a
minimum of 20,000 kilograms of cannabis per annum from Cronos
GrowCo after Cura receives all necessary licenses from Health
Canada. Cura also expects to build its proprietary,
state-of-the-art extraction facility on a parcel of land owned by
Cronos Group in the heart of Okanagan Valley, British Columbia.
Business Highlights Subsequent to Third Quarter 2018
- In October 2018, the Company
announced it had entered into a sponsored research agreement with
the Technion Research and Development Foundation of the Technion -
Israel Institute of Technology ("Technion") to explore the
use of cannabinoids and their role in regulating skin health and
skin disorders. The preclinical studies will be conducted by
Technion over a three-year period and will focus on three skin
conditions: acne, psoriasis and wound healing.
- On October 17, 2018, Canada became the first G7 country and the
second country in the world to legalize cannabis sales for adult
recreational use. The Company is actively engaged in this
distribution channel and is currently selling dried cannabis,
pre-rolls and cannabis oils to Ontario, British
Columbia, Nova Scotia and
Prince Edward Island, which
collectively represent over 50% of the Canadian population. The
Company expects to secure additional provincial listings as more of
its production capacity comes online, which will allow the Company
to adequately service additional provincial markets.
Third Quarter 2018 Financial Highlights
- Third quarter 2018 revenues totaled $3.8
million, as compared to $1.3
million for the third quarter of 2017, representing an
increase of $2.4 million, or 186%.
Kilograms of cannabis sold increased 213% in the third quarter from
164 kilograms in the third quarter of 2017 to 514 kilograms in the
third quarter of 2018. The main drivers associated with the
increase in revenues and the increase in kilograms sold are
increased production capacity and increased volumes sold through
the domestic medical and international channels, as well as initial
shipments into the domestic adult-use recreational market.
- The Company continues to see strong growth in cannabis oil
sales, which represented 29% of total revenue in the third quarter
of 2018.
Conference Call
The Company will host a conference
call and live audio webcast on Tuesday,
November 13, 2018 at 8:30 a.m.
EST to discuss third quarter 2018 results. The call will
last approximately one hour. Instructions for the conference call
are provided below:
Live Audio Webcast:
https://thecronosgroup.com/investor-relations
Toll-free dial-in number: (888) 231-8191
International dial-in number: (647) 427-7450
Conference ID: 8084817
Additionally, an audio replay of the conference call will be
available two hours after the call's completion and until
11:59 p.m. EST on November 27, 2018. Instructions for the audio
replay are provided below:
Toll-free dial-in number: (855) 859-2056
Passcode: 8084817
About Cronos Group
Cronos Group is a globally
diversified and vertically integrated cannabis company with a
presence across five continents. Cronos Group operates two
wholly-owned Canadian license holders: Peace Naturals Project Inc.,
which was the first non-incumbent medical cannabis license granted
by Health Canada, and Original BC Ltd., which is based in the
Okanagan Valley, British Columbia.
Cronos Group has multiple international production and distribution
platforms and intends to continue to rapidly expand 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 securities laws (collectively,
"forward-looking statements"). All statements contained herein that
are not clearly historical in nature may constitute forward-looking
statements. In some cases, forward-looking statements can be
identified by words or phrases such as "may", "will", "expect",
"likely", "should", "would", "plan", "anticipate", "intend",
"potential", "proposed", "estimate", "believe" or the negative of
these terms, or other similar words, expressions and grammatical
variations thereof, or statements that certain events or conditions
"may" or "will" happen, or by discussions of strategy.
Forward-looking statements include estimates, plans, expectations,
opinions, forecasts, projections, targets, guidance or other
statements that are not statements of historical fact.
Forward-looking statements are provided for the purposes of
assisting the reader in understanding our financial performance,
financial position and cash flows as at and for periods ended on
certain dates and to present information about management's current
expectations and plans relating to the future and the reader is
cautioned that such information may not be appropriate for any
other purpose. Some of the forward-looking statements contained in
this press release, include, but are not limited to, statements
with respect to: our business and operations, our strategy for
future growth, growing our global footprint, establishing
partnerships and distribution relationships, the expansion of the
Company's growing and production capacities, the construction of
our facilities and our intention to build an international iconic
brand portfolio and develop disruptive intellectual
property. Forward-looking statements are based upon certain
material assumptions that were applied in drawing a conclusion or
making a forecast or projection, including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances. While we consider these
assumptions to be reasonable based on information currently
available to management, there is no assurance that such
expectations will prove to be correct. By their nature,
forward-looking statements are subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors,
including known and unknown risks, many of which are beyond our
control, could cause actual results to differ materially from the
forward-looking statements in this press release. Such factors
include, without limitation, those discussed in the Company's
current MD&A and Annual Information Form, both of which have
been filed on SEDAR and can be accessed at www.sedar.com.
Readers are cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. Forward-looking
statements contained herein are made as of the date of this press
release and are based on the beliefs, estimates, expectations and
opinions of management on the date such forward-looking statements
are made. The Company undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, estimates or opinions, future events or results or
otherwise or to explain any material difference between subsequent
actual events and such forward-looking statements, except as
required by applicable law.
Cronos Group
Inc.
|
Unaudited
Condensed Interim Consolidated Statements of Financial
Position
|
As at
September 30, 2018 and
December 31, 2017
|
(in thousands of
CDN $)
|
|
|
Notes
|
|
As
at
September 30,
2018
|
|
As
at
December 31,
2017
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
$
|
41,482
|
|
$
|
9,208
|
Accounts
receivable
|
|
23(i)
|
|
|
3,278
|
|
|
1,140
|
Sales taxes
receivable
|
|
|
|
|
9,953
|
|
|
3,114
|
Prepaids and other
receivables
|
|
23(i)
|
|
|
10,246
|
|
|
790
|
Biological
assets
|
|
6
|
|
|
5,632
|
|
|
3,722
|
Inventory
|
|
6
|
|
|
15,073
|
|
|
8,416
|
Loan
receivable
|
|
7,23(i)
|
|
|
314
|
|
|
314
|
Total current
assets
|
|
|
|
|
85,978
|
|
|
26,704
|
Advances to related
corporations
|
|
8,23(i)
|
|
|
2,674
|
|
|
-
|
Investments in equity
accounted investees
|
|
9
|
|
|
4,072
|
|
|
3,807
|
Other
investments
|
|
10,23(iii)
|
|
|
994
|
|
|
1,347
|
Property, plant and
equipment
|
|
11
|
|
|
127,595
|
|
|
56,172
|
Intangible
assets
|
|
12
|
|
|
11,345
|
|
|
11,207
|
Goodwill
|
|
13
|
|
|
1,792
|
|
|
1,792
|
Total
assets
|
|
|
|
$
|
234,450
|
|
$
|
101,029
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
other liabilities
|
|
23(ii)
|
|
$
|
3,066
|
|
$
|
7,878
|
Government remittances
payable
|
|
|
|
|
739
|
|
|
-
|
Construction loan
payable
|
|
15
|
|
|
5,724
|
|
|
-
|
Total current
liabilities
|
|
|
|
|
9,529
|
|
|
7,878
|
Construction loan
payable
|
|
15
|
|
|
-
|
|
|
5,367
|
Deferred income tax
liability
|
|
22
|
|
|
2,656
|
|
|
1,416
|
Total
liabilities
|
|
|
|
|
12,185
|
|
|
14,661
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Share
capital
|
|
16(a)
|
|
|
225,549
|
|
|
83,559
|
Shares to be
issued
|
|
16(b)
|
|
|
17
|
|
|
-
|
Warrants
|
|
17(a)
|
|
|
1,548
|
|
|
3,364
|
Stock
options
|
|
17(b)
|
|
|
4,982
|
|
|
2,289
|
Accumulated
deficit
|
|
|
|
|
(11,261)
|
|
|
(3,724)
|
Accumulated other
comprehensive income
|
|
|
|
|
1,119
|
|
|
880
|
Total equity
attributable to shareholders of Cronos
|
|
|
|
|
221,954
|
|
|
86,368
|
Non-controlling
interests
|
|
14
|
|
|
311
|
|
|
-
|
Total shareholders'
equity
|
|
|
|
|
222,265
|
|
|
86,368
|
Total liabilities
and shareholders' equity
|
|
|
|
$
|
234,450
|
|
$
|
101,029
|
Cronos Group
Inc.
|
Unaudited
Condensed Interim Consolidated Statements of Operations and
Comprehensive Income (Loss)
|
For the three and
nine months ended September 30, 2018 and
September 30, 2017
|
(in thousands of
CDN $, except share and per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
Notes
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
|
18
|
|
$
|
3,760
|
|
$
|
1,314
|
|
$
|
10,099
|
|
$
|
2,471
|
Cost of sales before
fair value adjustments
|
5,6
|
|
|
1,688
|
|
|
464
|
|
|
4,509
|
|
|
877
|
Gross profit
before fair value adjustments
|
|
|
|
2,072
|
|
|
850
|
|
|
5,590
|
|
|
1,594
|
Fair value
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
5,6
|
|
|
(1,533)
|
|
|
(2,478)
|
|
|
(11,108)
|
|
|
(5,179)
|
Realized fair value
adjustments on inventory sold in the period
|
5,6
|
|
|
1,511
|
|
|
1,324
|
|
|
6,330
|
|
|
2,612
|
Total fair value
adjustments
|
|
|
|
(22)
|
|
|
(1,154)
|
|
|
(4,778)
|
|
|
(2,567)
|
Gross
profit
|
|
|
|
2,094
|
|
|
2,004
|
|
|
10,368
|
|
|
4,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
|
598
|
|
|
176
|
|
|
1,548
|
|
|
306
|
General and
administrative
|
|
|
|
4,820
|
|
|
1,066
|
|
|
11,500
|
|
|
4,274
|
Share-based
payments
|
17(b),20
|
|
|
1,223
|
|
|
539
|
|
|
2,947
|
|
|
1,170
|
Depreciation and
amortization
|
11,12
|
|
|
330
|
|
|
255
|
|
|
938
|
|
|
684
|
Total operating
expenses
|
|
|
|
6,971
|
|
|
2,036
|
|
|
16,933
|
|
|
6,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
(4,877)
|
|
|
(32)
|
|
|
(6,565)
|
|
|
(2,273)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
(62)
|
|
|
(22)
|
|
|
(121)
|
|
|
(159)
|
Share of income (loss)
from investment in associate
|
9
|
|
|
20
|
|
|
(53)
|
|
|
64
|
|
|
363
|
Gain on other
investments
|
10
|
|
|
-
|
|
|
1,128
|
|
|
221
|
|
|
2,399
|
Total other income
(expense)
|
|
|
|
(42)
|
|
|
1,053
|
|
|
164
|
|
|
2,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
|
(4,919)
|
|
|
1,021
|
|
|
(6,401)
|
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
22
|
|
|
2,352
|
|
|
(76)
|
|
|
1,197
|
|
|
(98)
|
Net income
(loss)
|
|
|
$
|
(7,271)
|
|
$
|
1,097
|
|
$
|
(7,598)
|
|
$
|
428
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cronos
Group
|
|
|
|
(7,210)
|
|
|
1,097
|
|
|
(7,537)
|
|
|
428
|
Non-controlling
interests
|
14
|
|
|
(61)
|
|
|
-
|
|
|
(61)
|
|
|
-
|
|
|
|
$
|
(7,271)
|
|
$
|
1,097
|
|
$
|
(7,598)
|
|
$
|
428
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
revaluation and disposal of other investments, net of
tax
|
10,22
|
|
|
233
|
|
|
(2)
|
|
|
237
|
|
|
692
|
Foreign exchange gain
on translation of foreign operations
|
2(c)
|
|
|
3
|
|
|
-
|
|
|
3
|
|
|
-
|
Total other
comprehensive income (loss)
|
|
|
|
236
|
|
|
(2)
|
|
|
240
|
|
|
692
|
Comprehensive
income (loss)
|
|
|
$
|
(7,035)
|
|
$
|
1,095
|
|
$
|
(7,358)
|
|
$
|
1,120
|
Comprehensive
income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cronos
Group
|
|
|
|
(6,975)
|
|
|
1,095
|
|
|
(7,298)
|
|
|
1,120
|
Non-controlling
interests
|
14
|
|
|
(60)
|
|
|
-
|
|
|
(60)
|
|
|
-
|
|
|
|
$
|
(7,035)
|
|
$
|
1,095
|
|
$
|
(7,358)
|
|
$
|
1,120
|
Net income (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
19
|
|
$
|
(0.04)
|
|
$
|
0.01
|
|
$
|
(0.04)
|
|
$
|
0.00
|
Weighted average
number of outstanding shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
19
|
|
|
177,483,122
|
|
|
134,913,931
|
|
|
170,097,232
|
|
|
130,782,161
|
Diluted
|
19
|
|
|
177,483,122
|
|
|
143,592,860
|
|
|
170,097,232
|
|
|
139,461,090
|
Cronos Group
Inc.
|
Unaudited
Condensed Interim Consolidated Statements of Cash
Flows
|
For the three and
nine months ended September 30, 2018 and
September 30, 2017
|
(in thousands of
CDN $)
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
Notes
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
$
|
(6,392)
|
|
$
|
1,097
|
|
$
|
(6,719)
|
|
$
|
428
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized change in
fair value of biological assets
|
|
5,6
|
|
|
(1,533)
|
|
|
(2,478)
|
|
|
(11,108)
|
|
|
(5,179)
|
Realized fair value
adjustments on inventory sold in the period
|
|
5,6
|
|
|
1,511
|
|
|
1,324
|
|
|
6,330
|
|
|
2,612
|
Share-based
payments
|
|
17(b),20
|
|
|
1,223
|
|
|
539
|
|
|
2,947
|
|
|
1,170
|
Depreciation and
amortization
|
|
11,12
|
|
|
645
|
|
|
255
|
|
|
1,760
|
|
|
684
|
Share of income (loss)
from investment in associate
|
|
9
|
|
|
(20)
|
|
|
53
|
|
|
(64)
|
|
|
(363)
|
Gain on other
investments
|
|
10
|
|
|
-
|
|
|
(1,128)
|
|
|
(221)
|
|
|
(2,399)
|
Deferred income tax
expense (recovery)
|
|
22
|
|
|
1,473
|
|
|
(76)
|
|
|
318
|
|
|
(98)
|
Foreign exchange loss
(gain)
|
|
|
|
|
2
|
|
|
-
|
|
|
(10)
|
|
|
-
|
|
|
|
|
|
(3,091)
|
|
|
(414)
|
|
|
(6,767)
|
|
|
(3,145)
|
Net changes in
non-cash working capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
23(i)
|
|
|
(434)
|
|
|
(102)
|
|
|
(2,138)
|
|
|
(293)
|
Sales taxes
receivable
|
|
|
|
|
(3,001)
|
|
|
-
|
|
|
(6,839)
|
|
|
-
|
Prepaids and other
receivables
|
|
23(i)
|
|
|
(6,134)
|
|
|
452
|
|
|
(9,456)
|
|
|
(1,700)
|
Biological
assets
|
|
5,6
|
|
|
2,800
|
|
|
2,452
|
|
|
9,198
|
|
|
4,162
|
Inventory
|
|
5,6
|
|
|
(4,250)
|
|
|
(3,408)
|
|
|
(12,987)
|
|
|
(5,502)
|
Accrued interest on
loan receivable
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5)
|
Accounts payable and
other liabilities
|
|
|
|
|
733
|
|
|
3,261
|
|
|
(5,017)
|
|
|
3,470
|
Government remittances
payable
|
|
|
|
|
739
|
|
|
-
|
|
|
739
|
|
|
-
|
Cash flows provided
by (used in) operating activities
|
|
|
|
|
(12,638)
|
|
|
2,241
|
|
|
(33,267)
|
|
|
(3,013)
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of purchase
price liability
|
|
|
|
|
-
|
|
|
(1,291)
|
|
|
-
|
|
|
(2,590)
|
Investments in equity
accounted investees
|
|
9
|
|
|
(201)
|
|
|
-
|
|
|
(201)
|
|
|
(1,076)
|
Investment in ABcann
Global Corporation
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,016)
|
Proceeds from sale of
other investments
|
|
10
|
|
|
-
|
|
|
3,383
|
|
|
967
|
|
|
5,154
|
Payment to exercise
ABcann Global Corporation warrants
|
|
10
|
|
|
-
|
|
|
(2,268)
|
|
|
(113)
|
|
|
(2,268)
|
Advances to related
corporations
|
|
8
|
|
|
(2,674)
|
|
|
-
|
|
|
(2,674)
|
|
|
-
|
Cash assumed on
acquisition of Cronos Israel
|
|
14
|
|
|
1,304
|
|
|
-
|
|
|
-
|
|
|
-
|
Purchase of property,
plant and equipment
|
|
11
|
|
|
(34,229)
|
|
|
(11,571)
|
|
|
(71,896)
|
|
|
(17,101)
|
Purchase of intangible
assets
|
|
12
|
|
|
(125)
|
|
|
-
|
|
|
(294)
|
|
|
-
|
Cash flows used in
investing activities
|
|
|
|
|
(35,925)
|
|
|
(11,747)
|
|
|
(74,211)
|
|
|
(18,897)
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of warrants
|
|
17(a)
|
|
|
444
|
|
|
720
|
|
|
1,856
|
|
|
1,533
|
Proceeds received for
shares to be issued
|
|
16(b)
|
|
|
-
|
|
|
-
|
|
|
961
|
|
|
76
|
Proceeds from exercise
of options
|
|
17(b)
|
|
|
27
|
|
|
43
|
|
|
567
|
|
|
485
|
Proceeds from share
issuance
|
|
16(a)
|
|
|
-
|
|
|
15,010
|
|
|
146,032
|
|
|
32,346
|
Share issuance
costs
|
|
|
|
|
(35)
|
|
|
(29)
|
|
|
(9,479)
|
|
|
(1,350)
|
Increase in
indebtedness
|
|
|
|
|
-
|
|
|
869
|
|
|
-
|
|
|
869
|
Proceeds from
construction loan payable
|
|
15
|
|
|
-
|
|
|
5,022
|
|
|
-
|
|
|
5,022
|
Payment of accrued
interest on construction loan
|
|
15
|
|
|
-
|
|
|
-
|
|
|
(185)
|
|
|
-
|
Repayment of mortgage
payable
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(4,000)
|
Cash flows provided
by financing activities
|
|
|
|
|
436
|
|
|
21,635
|
|
|
139,752
|
|
|
34,981
|
Net change in
cash
|
|
|
|
|
(48,127)
|
|
|
12,129
|
|
|
32,274
|
|
|
13,071
|
Cash - beginning of
period
|
|
|
|
|
89,609
|
|
|
4,406
|
|
|
9,208
|
|
|
3,464
|
Cash - end of
period
|
|
|
|
$
|
41,482
|
|
$
|
16,535
|
|
$
|
41,482
|
|
$
|
16,535
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
|
|
$
|
189
|
|
$
|
22
|
|
$
|
684
|
|
$
|
222
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/cronos-group-inc-announces-third-quarter-2018-results-300748932.html
SOURCE Cronos Group Inc.