TORONTO, March 19, 2018 /CNW/ - Cronos Group Inc. (Nasdaq:
CRON) (TSX-V: CRON) ("Cronos" or the "Company") – With Canada on
track to legalize adult use of cannabis, two of the world's largest
cannabis companies announced a first-of-its-kind cross border joint
venture today that could bring America's most recognized cannabis
brand to Canadian consumers by year's end.
MM Enterprises USA, LLC
("MedMen Enterprises"), a leading U.S. cannabis company with
facilities in California,
Nevada, and New York, entered into an agreement with
Cronos Group, a Canadian licensed producer and distributor of
medical cannabis. Cronos, which also has a footprint in
Germany, Israel, and Australia, recently became the first pure-play
cannabis company traded on a major U.S. stock exchange, the
Nasdaq.
The joint venture, called MedMen Canada Inc. ("MedMen Canada"),
will develop branded products and open stores across Canada, leveraging Cronos' Canadian reach and
expertise, as well as MedMen's class-defining retail expertise.
MedMen is the largest cannabis retail chain in California, which welcomed adult use sales
this year. The company owns and operates factories and stores in
three states and anticipates going public in Canada in the second quarter of this
year. Cronos operates two wholly-owned Canadian Licensed
Producers under Health Canada's Access to Cannabis for Medical
Purposes Regulations: Peace Naturals Project Inc. and Original BC
Ltd.
"MedMen Canada will give us entry into an important emerging
market for adult use and broaden our exposure worldwide," said
MedMen CEO and Co-founder Adam
Bierman. "We always take a very disciplined and focused
approach to our growth, and it was important that we find the right
partner for our expansion into Canada. Cronos has been a leader in the
Canadian medical cannabis space, and their international track
record makes them the perfect partner. They have the right
infrastructure and expertise to successfully execute this
venture."
Canada legalized medical
cannabis in 2013 and is home to some of the largest cannabis
companies in the world. The federal government has announced plans
to legalize adult use later this year, which would make
Canada the first G7 country to
federally legalize adult use.
"Cronos is focused on changing the perception of cannabis on an
international scale, and we prioritize working with best-in-class
partners who share our vision for the future. MedMen stores
have been integral to mainstreaming cannabis, and they have become
one of the most well-known and respected cannabis platforms in the
U.S. We're very excited to bring the MedMen experience to
Canada," said Cronos CEO
Mike Gorenstein.
The joint venture will be a 50/50 partnership between the
two companies. MedMen Canada will be focused on a branded national
retail chain, branded products, and research and development
activities. MedMen Canada will have access to Cronos' 350,000
plus square feet of production facilities and future expansions
while leveraging MedMen's retail brand recognition. MedMen
Canada will only operate in federally legal jurisdictions and in
compliance with all applicable regulations.
About MedMen
MedMen Enterprises is the United
States' preeminent cannabis company with multiple assets and
operations in California,
Nevada and New York. Combined, these key strategic states
account for nearly half of North
America's addressable legal market. MedMen owns and operates
licensed cannabis facilities in cultivation, manufacturing and
retail, and is the most recognized cannabis brand in the world
today. Based in Los Angeles,
MedMen employs nearly 700 workers in 18 facilities across the U.S.
For more information, visit http://www.medmen.com
About Cronos Group
Cronos Group is a globally diversified and vertically integrated
cannabis company with a presence across four continents. The
Company operates two wholly-owned Canadian Licensed Producers
regulated under Health Canada's Access to Cannabis for Medical
Purposes Regulations: Peace Naturals Project Inc. (Ontario), which was the first non-incumbent
medical cannabis license granted by Health Canada, and Original BC
Ltd. (British Columbia), which is
based in the Okanagan Valley. The Company has multiple
international production and distribution platforms including
Germany, Israel and Australia. The Company is rapidly expanding
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. For more information, visit
www.thecronosgroup.com
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements, by their nature, require the Company to
make certain assumptions and necessarily involve known and unknown
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward-looking
statements. Words such as "may", "will", "would", "could",
"expect", "believe", "plan", "anticipate", "intend", "estimate",
"continue", or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward-looking statements. Information contained in
forward-looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection. The Company considers its assumptions to be
reasonable based on information currently available but cautions
the reader that its assumptions regarding future events, many of
which are beyond the control of the Company, may ultimately prove
to be incorrect since they are subject to risks and uncertainties
that affect the Company and its business.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking statements
made in this press release, refer to the Company's most recent
Annual Information Form filed on SEDAR. The forward-looking
information set forth herein reflects the Company's expectations as
at the date of this press release and is subject to change after
such date. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, other than
as required by law.
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SOURCE Cronos Group Inc.