/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, Oct. 19, 2017 /CNW/ - Cronos Group Inc.
(TSX VENTURE: MJN) ("Cronos" or the "Company") is pleased to
announce that it has entered into a letter of engagement with PI
Financial Corp. ("PI") as sole lead underwriter. PI has agreed to
purchase for re-sale 4,761,905 common shares of the Company (the
"Shares"), on a "bought deal" basis pursuant to the filing of a
short form prospectus, subject to all required regulatory
approvals, at a price per Share of $3.15 (the "Offering Price"), for total gross
proceeds of $15,000,000.75 (the
"Offering").
The Company will grant PI an option to increase the size of the
Offering by up to 15% of the initial Offering size or 714,285
additional Shares (the "Over-Allotment Option") unless the Offering
size is increased in which case the Overallotment Option will be
15% of the increased Offering. 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 to provide for
possible future acquisitions.
The closing date of the Offering is scheduled to be on or about
November 14, 2017 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, 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. 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.
For more information, please visit www.thecronosgroup.com.
SOURCE Cronos Group Inc.