TORONTO, Jan. 23, 2019 /PRNewswire/ - Cronos Group Inc.
(NASDAQ: CRON) (TSX: CRON) ("Cronos Group" or the
"Company") today announced that it has entered into a credit
agreement (the "Credit Agreement") with Canadian Imperial
Bank of Commerce ("CIBC"), as administrative agent and
lender, and the Bank of Montreal, as
lender (together with CIBC, the "Lenders") in
respect of a $65 million secured
non-revolving term loan credit facility (the "Credit
Facility"). The Company intends to use the funds available
under the Credit Facility to repay the Company's existing loan
facility with Romspen Investment Corporation and for general
corporate purposes pending the closing of the Company's previously
announced equity investment by Altria Group, Inc. (the
"Investment"). The Company intends to repay the Credit
Facility with a portion of the proceeds from the Investment.
The Credit Facility will mature on July
23, 2019, unless extended to September 7, 2019 with the consent of the
Lenders.
The Credit Facility includes an accordion feature whereby,
subject to the terms and conditions of the Credit Agreement, the
Credit Facility may be increased by up to an additional maximum
aggregate principal amount of $15
million. The Credit Facility will bear interest at varying
margins based on the Canadian prime rate or the bankers' acceptance
rate, at the option of the Company. The Credit Facility is
guaranteed by the Company's wholly-owned Canadian subsidiaries, and
the obligations under and in connection with the Credit Facility
are secured by substantially all present and after-acquired
property of the Company and its wholly-owned Canadian
subsidiaries.
The Credit Agreement contains customary representations and
warranties and financial and restrictive covenants. Advances under
the Credit Facility are subject to customary conditions.
The Investment remains on track to close in the first half of
2019 and is subject to certain customary closing conditions,
including the receipt of regulatory approval under the Investment
Canada Act and approval by at least a majority of the votes cast by
holders of common shares of the Company (the
"Shareholders"), in person or by proxy, at the special
meeting of Shareholders scheduled for February 21, 2019 (the "Meeting"). A
management information circular dated December 31, 2018 (the "Circular") has
been filed in connection with the Meeting on SEDAR and EDGAR and
can be accessed at www.sedar.com and www.sec.gov/edgar.
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 licensed producers: 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 across five
continents. Cronos Group 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
Canadian and U.S. securities laws. All information contained herein
that is not clearly historical in nature may constitute
forward-looking information. In some cases, forward-looking
statements can be identified by words or phrases such as "may",
"will", "expect", "plan", "anticipate", "intend", "potential",
"estimate", "believe" or the negative of these terms, or other
similar expressions intended to identify forward-looking
statements. 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 or 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. A discussion of some of
the material risks applicable to the Company and the Investment can
be found in the Company's current MD&A and Annual Information
Form and the Circular, all of which have been filed on SEDAR and
EDGAR and can be accessed at www.sedar.com and
www.sec.gov/edgar. The forward-looking information included in this
news release is made as of the date of this news release and 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.
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SOURCE Cronos Group Inc.