Cronos Group has closed a stock deal that raised 17.2 million Canadian dollars ($13.5 million) to fund research and development, expand Canadian cannabis production capacity and develop distribution infrastructure.
The deal brings to CA$90 the amount of capital the company has raised so far this year, including CA$40 million in debt, President and CEO Mike Gorenstein told Marijuana Business Daily.
Cronos – based in Toronto and traded on the TSX Venture Exchange under the symbol MJN – said in a news release that 5,476,190 common shares were sold at a price of $3.15 per share under the transaction.
The so-called bought deal offering was underwritten by a syndicate led by Vancouver-based PI Financial Corp.
In a separate news release, Cronos said the TSX Venture Exchange approved its previously reported partnership with Kibbutz Gan Shmuel to cultivate medical marijuana in Israel.
The partnership to grow MMJ in the north of the Middle Eastern country made Cronos the first Canadian MMJ producer to establish a production facility overseas for global exports.
Cronos plans to export the MMJ to overseas markets and hopes to generate nearly CA$200 million a year through the initiative.
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