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.
Source: 420 Intel – United States