Under the Amended Agreement, milestone events have been established for the early commercialization by
Cronos Group of products incorporating the target cannabinoids, such that, within each tranche of common shares to be issued, one-third of the common shares in the tranche will be issued on the date that
Cronos Group sells a product that incorporates the relevant target cannabinoid to a third party. The remaining two-thirds of the common shares within such tranche will be issued upon Ginkgos
demonstration that the relevant microorganisms can produce the relevant target cannabinoid above the corresponding productivity level in the original agreement. The aggregate number of common shares potentially issuable to Ginkgo has not changed as
a result of the Amended Agreement.
Cronos Group has the exclusive right to use and commercialize certain key patented intellectual property for the use
of microorganisms developed for the production of the target cannabinoids globally. All R&D work undertaken by Ginkgo is being conducted in compliance with U.S. federal law regarding controlled substances. Cronos Group intends to produce and
distribute the target cannabinoids globally, where permitted by applicable law and subject to applicable regulatory approvals and has received confirmation that this method of production is permitted under the Cannabis Act (Canada).
About Cronos Group Inc.
Cronos Group is an innovative
global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a
passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Groups portfolio includes PEACE NATURALS, a global wellness
platform, two adult-use brands, COVE and Spinach, and three U.S. hemp-derived
CBD brands, Lord Jones, Happy Dance and PEACE+. For
more information about Cronos Group and its brands, please visit: www.thecronosgroup.com.
About Ginkgo Bioworks
Ginkgo is building a platform to program cells as easily as we can program computers. The companys platform is enabling the growth of biotechnology
across diverse markets, from food and agriculture to industrial chemicals to pharmaceuticals. Ginkgo is also actively supporting a number of COVID-19 response efforts, including community testing,
epidemiological tracing, vaccine development and therapeutics discovery. For more information, visit www.ginkgobioworks.com.
Forward-looking
Statements
This press release may contain information that may constitute forward-looking information and forward-looking
statements within the meaning of applicable Canadian and U.S. securities laws (collectively, Forward-Looking Statements), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs. All
information that is not clearly historical in nature may constitute Forward-Looking Statements. In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology such as expect, likely,
may, will, should, intend, anticipate, potential, proposed, estimate and other similar words, expressions and phrases, including negative and grammatical
variations thereof, or statements that certain events or conditions may or will happen, or by discussion of strategy. Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections,
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