• Daily Marijuana Observer Facebook
  • Daily Marijuana Observer Twitter
  • Daily Marijuana Observer StockTwits
  • Daily Marijuana Observer SA
  • Daily Marijuana Observer Instagram
  • Daily Marijuana Observer Youtube
  • Pinterest Social Icon
  • Daily Marijuana Observer Talk Market

Cronos Group Raises $40 Million in Debt Financing

August 24, 2017

(Photo Credit - ccPixs.com)


Cronos Group Inc. (TSXV:MJN) (OTC:PRMCF) announced today that it has entered into a commitment letter for $40 million in debt financing from Romspen Investment Corporation to fund the ongoing construction of its 315,000 sq. ft. facility expansion that they announced back on May 23, 2017.


Cronos Group is already a major player in the Canadian cannabis space, positioning itself as a geographically diversified cannabis company that operates two wholly-owned Licensed Producers and holds a portfolio of minority investments in other Licensed Producers. Romspen currently manages one of the largest non-bank commercial and industrial mortgage investment entities in all of Canada, with a portfolio in excess of $1.7 billion CAD. 


Loan Details


Under the commitment letter, Romspen has agreed to provide the $40 million senior secured facility to Cronos Group's wholly-owned licensed producer, Peace Naturals Project Inc. The loan is secured by a first mortgage on the real estate of both Peace Naturals and In The Zone Inc. In The Zone, Hortican Inc., and Cronos are also guarantors of the loan. Under the loan, Cronos Group retains its ability to enter into equipment financing arrangements.


The loan will be made available in multiple advances which are expected to begin in September 2017. Advances will be subject to ongoing conditions, including Romspen's approval of construction progress. The loan bears interest at a rate of 12% per year on advances made, has a 2 year term with a one-year extension option, and is pre-payable on one-month's notice. 


"Given the speed at which we anticipate payback of investment in the New Peace Facility, we prioritized accessing the debt markets to fund this domestic expansion.  We always look for ways to enhance shareholder value and we're pleased to be able to work with Romspen again to deliver that value," said Mike Gorenstein, CEO of Cronos.


Cronos Grants Options


Additionally, Cronos granted options for 2,903,000 common shares to certain employees and directors in accordance with the company's stock option plan. The options are exercisable at a price of $2.42 per common share, which was the closing price of Cronos' common shares on the TSXV on August 23, 2017. 


For more publicly traded Canadian Licensed Producers, check out our database here. Be sure to subscribe to one or more of our free e-mail newsletters so you never miss an important marijuana stock update. Also, don't forget to connect with The Daily Marijuana Observer on social media via Facebook, Twitter, StockTwits, and Instagram




Please reload

Please reload

Please reload


© Copyright 2016-2020 Smoke Show Ventures, Inc.

RSS Feed

Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.