TORONTO, Nov. 9, 2017 /CNW/ - Cronos Group Inc. (TSX-V:
MJN) (OTC – Nasdaq Int'l Designation: PRMCF) ("Cronos" or the
"Company") is pleased to announce that its previously announced
strategic joint venture ("Cronos Israel") with Kibbutz Gan Shmuel
("Gan Shmuel") for the production, manufacture, and global
distribution of medical cannabis, has been approved by the TSX
Venture Exchange.
Israel's climate, which is
ideal for year-round greenhouse cultivation, coupled with Gan
Shmuel's existing infrastructure and skilled labor force, will
enable Cronos Israel to produce high quality medical cannabis at an
expected cost of between $0.40 and
$0.50 per gram. Additionally, Gan Shmuel is situated
on 4,939 acres of mixed-use agricultural/industrial land, which
provides the ability to expand capacity well beyond 100,000 KG
annually to meet demand in Israel,
Germany, and future distribution
channels.
Key Additions to Senior Leadership Team
Xiuming Shum joins Cronos as
General Counsel with eight years of transactional and in-house
experience in mergers and acquisitions ("M&A") and regulatory
change management. Most recently, Xiuming served as in-house
counsel at BNP Paribas' Corporate and Institutional Banking
division in New York and
London, providing advice to senior
management on disruptive and transformative legislative changes,
such as the BASEL banking reforms,
Brexit, and the Dodd-Frank Act. Previously, she was a
corporate attorney at Sullivan & Cromwell LLP in New York, where she focused on M&A in
large, complex cross-border transactions in diverse industries,
including alcohol and spirits, insurance, banking, private equity,
and hedge funds. Xiuming is a New
York-qualified attorney, holding a J.D. from Columbia Law
School (Harlan Fiske Stone Scholar) and a first-class Bachelor of
Laws degree from University College London in the U.K.
Kevin Gifford joins Cronos as
Vice President of Finance and Corporate Development with over 15
years of experience in both operating and investing in companies
across multiple industries, including consumer products, business
services, retail and technology. Prior to joining Cronos,
Kevin held a range of diverse investment roles at several private
equity firms, as well as the Americas Special Situations Group at
Goldman Sachs & Co., where he originated and executed
transactions across the entire capital structure for middle-market
companies. Additionally, Kevin worked in Deloitte's Corporate
Restructuring Group, where he improved performance of distressed
companies in an interim C-level management or financial advisory
capacity. Kevin holds a degree in economics from the Wharton
School at the University of
Pennsylvania and an M.B.A. from the University of Michigan.
Ran Gorelik joins Cronos as General Manager of Cronos Israel
with over 20 years of entrepreneurial and operational experience in
biotech and healthcare. Ran served for four years in the
Israeli special forces and, additionally, has extensive experience
in real estate finance and development in Israel, Spain, Slovakia and the Czech Republic. Ran
holds a degree in mechanical engineering from the New York
Institute of Technology. His experience will be critical to
executing the ongoing expansion initiatives at Cronos Israel,
vetting new Israeli research and technology, and implementing
Cronos Israel's domestic distribution strategy.
"I am excited to welcome these key team members to the Cronos
Group. Their experience and insight will be valuable assets
as we continue to execute on our global strategic initiatives,"
said Mike Gorenstein, CEO of
Cronos.
Company Grants Options
The Company has granted stock options to subscribe to 200,000
common shares of the Company for certain employees in accordance
with the Company's stock option plan. The options are exercisable
at a price of $3.32 per common share,
which was the closing price of the Company's common shares on the
TSX-V on November 8, 2017. The
options shall expire at the earlier of 180 days of the death,
disability or incapacity of the holder, or five years after the
date of issue. The grant of options is subject to the Company
receiving all necessary and appropriate regulatory consents and
approvals, if any, and to the Company's stock option plan.
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, 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.
SOURCE Cronos Group Inc.