/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 the Company has entered into a revised agreement with a
syndicate of underwriters led by PI Financial Corp. (collectively,
the "Underwriters"), to increase the size of its previously
announced bought deal financing to approximately $40
million aggregate gross proceeds (the "Offering"),
representing 4,571,429 shares of the Company (the "Shares"), at a
price of $8.75 per Share (the "Offering Price").
The Company has granted the Underwriters an option to purchase
up to 685,714 additional Shares on the same terms as the Offering
(the "Over-Allotment Option). 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 26, 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 and includes, but is not limited to,
information relating to the timing and successful completion of the
Offering and the use of proceeds of the Offering. 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.
SOURCE Cronos Group Inc.