Cronos Group Inc. Exits Investment in Whistler Medical Marijuana Corporation
March 04 2019 - 7:00AM
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“
Cronos
Group” or the “
Company”), confirmed today
that it has sold all of its common shares in the capital of
Whistler Medical Marijuana Corporation
("
Whistler"), representing approximately 19
percent of Whistler’s issued and outstanding common shares, to
Aurora Cannabis Inc. (“
Aurora”) for a total
purchase price of approximately C$175 million, payable by the
issuance of common shares in the capital of Aurora (“
Aurora
Common Shares”), and subject to certain working capital
adjustments and holdbacks (the “
Transaction”).
“We’d like to thank and congratulate Whistler
for their partnership over the past two years,” said Mike
Gorenstein, CEO of Cronos Group. “Whistler’s commitment to creating
high-quality products and establishing a premium brand has
generated value for consumers and investors alike. We are proud to
have been part of their growth and look forward to their progress
through this venture.”
As a result of the closing of the Transaction,
Cronos Group has received approximately 2.5 million Aurora Common
Shares with an aggregate value of approximately C$24.6 million
based on an issue price of $9.77 per Aurora Common Share, which
represents the five-day volume weighted average price
(“VWAP”) of Aurora Common Shares immediately prior
to closing of the Transaction. In addition, the Company will
receive further Aurora Common Shares valued at an aggregate of
approximately C$7.6 million upon the satisfaction of certain
specified milestones. The exact number of Aurora Common Shares to
be issued to the Company following the satisfaction of each such
milestone will be determined in reference to the five-day VWAP of
Aurora Common Shares immediately prior to the achievement of the
applicable milestone.
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. Specific forward-looking statements contained in this
new release include, but are not limited to, statements with
respect to the future progress of Whistler, the satisfaction of
certain specified milestones and the future issuance of Aurora
Common Shares to the Company following the satisfaction of such
milestones. 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 can be found in the
Company's current Management’s Discussion and Analysis and Annual
Information Form, both 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 upon these forward-looking statements.
For further information, please contact:
Cronos Group Inc. Anna ShlimakInvestor RelationsTel: (416)
504-0004investor.relations@thecronosgroup.com
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