TORONTO, ON – April 24, 2017 (Investorideas.com Newswire) Cronos Group Inc. (formerly PharmaCan Capital Corp.) (TSX VENTURE: MJN) (“Cronos”, or the “Company”) is providing an update on its investments in Whistler Medical Marijuana Corporation (“Whistler”), The Hydropothecary Corporation (“Hydropothecary”), ABcann Medicinals Inc. (“ABcann”), Evergreen Medicinal Supply Inc. (“Evergreen”), and CannMart Inc. (“CannMart”).
As previously announced, Cronos recently completed its additional equity investment in Whistler and maintained the Company’s 21.5% equity position. This additional capital will assist Whistler with their announced 65,000 square foot expansion in Pemberton, British Columbia. This expansion is expected to be completed by spring of 2018 in advance of recreational legalization in Canada.
Cronos holds a minority equity position in Hydropothecary, which recently started trading on the Toronto Venture Exchange on March 21st, 2017 under the symbol “THCX”. Hydropothecary is the only licensed producer in Quebec and is currently operating and expanding on its 80 acres of land near Gatineau, QC.
ABcann recently announced a reverse takeover with Panda Capital Inc., which shall constitute ABcann’s qualifying transaction. ABcann is licensed to produce up to 625 kg per year at their flagship Vanluven facility situated near Napanee, ON. Abcann recently supplemented its executive and advisory teams and undertook significant expansion initiatives at both their existing licensed facility as well as their expansion property.
Cronos completed its subscription for a second tranche of shares of Evergreen for $100,000 and exercised its option to acquire an additional 5% of the equity for $500,000, for a total additional investment of $600,000. Cronos satisfied this obligation in part by directing that debt owed by Evergreen be applied as payment for the equity and delivered the remainder of the payment in cash. However, Evergreen claims that Cronos is not entitled to any interest in Evergreen and has rejected Cronos’ payment.
Cronos filed a statement of claim in the Supreme Court of British Columbia and intends to vigorously pursue the enforcement of its rights to acquire equity in Evergreen in addition to Evergreen’s repayment of the debt. While there can be no assurance that Cronos will acquire its equity in Evergreen, management believes that Cronos is entitled to the relief sought in its statement of claim.
Cronos no longer intends to retain an investment in CannMart and CannMart has agreed to return the $25,000 previously paid by Cronos in respect of its proposed equity investment in CannMart.
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 In The Zone Produce Ltd. (British Columbia) are collectively situated on over 125 acres of agricultural land and are currently licensed to produce 2,600 kg of cannabis on an annual basis. The Company also holds minority equity positions in Licensed Producers Whistler Medical Marijuana, Hydropothecary, and Abcann. Cronos Group is focused on building an iconic brand portfolio, providing patients with compassionate and personalized care, and creating value for our shareholders.
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, 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. This news release contains information obtained by Cronos Group from third parties. Cronos Group 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.
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