Cronos Group Issues Statement on Separately Announced IPO of Cronos Australia
October 16 2019 - 8:30AM
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“
Cronos
Group” or the “
Company”) today noted the
separately announced AUD$20 million initial public offering of
Cronos Australia Limited (“Cronos Australia”). Under the offering,
Cronos Australia is expected to issue 40 million new shares at an
offering price of AUD$0.50 per share (the “
Cronos Australia
IPO”) ahead of its planned listing on the Australian
Securities Exchange in November 2019.
Established in February 2018, Cronos Australia is a 50/50 joint
venture between Cronos Group and NewSouthern Capital Pty Ltd., and
is led by Rodney Cocks and Peter Righetti. The launch marked
a significant milestone in Cronos Group’s commitment to advancing
cannabis research and producing and distributing products and
brands at a global scale.
Mike Gorenstein, Cronos Group’s Chairman, President and Chief
Executive Officer, said, “We are excited by this offering, which
enables Cronos Group to unlock value for our stakeholders while
also continuing to participate in Cronos Australia’s growth as they
work to become the market leader for medicinal cannabis in the
Asia-Pacific region.”
Upon completion of the Cronos Australia IPO, Cronos Group is
expected to hold approximately 31 percent of the issued capital of
Cronos Australia, and Cronos Australia is expected to have an
initial market capitalization of approximately AUD$64.4
million.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities in the United
States. The shares of Cronos Australia have not been and will not
be registered under the U.S. 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 unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
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 Group’s
portfolio includes PEACE NATURALS™, a global health and
wellness platform, and two adult-use brands, COVE™ and
Spinach™, and Lord Jones™, a hemp-derived cannabidiol (CBD)
personal care brand. To learn more about Cronos Group and its
brands, please visit: www.thecronosgroup.com;
www.peacenaturals.com; www.covecannabis.ca;
www.spinachcannabis.com; www.lordjones.com.
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. Some of the forward‐looking statements contained
in this press release include anticipated benefits and terms of the
Cronos Australia IPO, the issuance of new Cronos Australia shares,
the completion and timing of the Cronos Australia IPO and planned
listing on the Australian Securities Exchange, the market
capitalization of Cronos Australia following completion of the
Cronos Australia IPO, Cronos Group’s ownership in Cronos Australia
following completion of the Cronos Australia IPO and the Company’s
intention to build an international iconic brand portfolio and
develop disruptive intellectual property. 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 (including the marketability of
Cronos Australia’s shares) 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,
respectively. 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.
Cronos Group ContactAnna Shlimak Tel: (416)
504-0004 investor.relations@thecronosgroup.com
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