TORONTO, Aug. 02, 2019 (GLOBE NEWSWIRE) — Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Firm”) at the moment introduced that it has entered right into a definitive settlement to accumulate 4 of Redwood Holding Group, LLC’s working subsidiaries (collectively, “Redwood”).
Redwood manufactures, markets and distributes hemp-derived cannabidiol ( CBD) infused skincare and different shopper merchandise on-line and thru retail and hospitality companion channels in america beneath the model, Lord Jones™. Redwood’s merchandise use pure hemp oil that accommodates pure phytocannabinoids and terpenes discovered within the plant.
Redwood was co-founded in 2017 by Robert Rosenheck and Cindy Capobianco. Following the shut of the transaction, Mr. Rosenheck and Ms. Capobianco will be part of Cronos Group and proceed to guide the event of the Redwood platform with the assist of the present staff, model names and working areas remaining in place.
“Rob and Cindy have constructed a differentiated, best-in-class platform with hemp-based CBD formulations that stand for high quality and consistency. Our purpose is to protect the integrity of all Rob and Cindy have created, whereas additionally studying from them and leveraging Cronos Group’s sources to capitalize on the numerous demand for skincare and different shopper merchandise derived from hemp. Main the trade ahead responsibly and being part of the dialog with trade stakeholders stays a prime precedence for Cronos Group on this evolving space,” stated Mike Gorenstein, Cronos Group’s Chairman, President and Chief Govt Officer.
“The inspiration for our firm was easy, we needed to create a model we wished we may purchase as grownup shoppers,” stated Mr. Rosenheck. “We selected Cronos Group as a result of they share our imaginative and prescient and values and can assist us proceed our mission. We’re extremely pleased with our staff and grateful to our prospects who’re liable for our success. Cindy and I look ahead to working with Cronos Group to additional prolong the love and enthusiasm for our merchandise.”
Beneath the phrases of the settlement, Cronos Group will purchase Redwood for roughly USD $300 million, web of Redwood’s estimated money and debt and topic to a customary working capital adjustment as described within the settlement. USD $225 million of the whole consideration (topic to the foregoing changes) will likely be paid in money with the steadiness paid in newly issued Cronos Group widespread shares. Cronos Group will fund the money portion of the transaction with money available.
The transaction is anticipated to shut within the third quarter of 2019, topic to customary closing situations and regulatory approvals. Additional data relating to the transaction is included in Cronos Group’s materials change report with respect thereto, obtainable at www.sedar.com, and in its corresponding Kind 6-Ok, obtainable at www.sec.gov/edgar.
Perella Weinberg Companions LP is monetary advisor to Cronos Group, and Sullivan & Cromwell LLP and Blake, Cassels & Graydon LLP function authorized counsel. Lazard Ltd. is monetary advisor to Redwood Holding Group, LLC, Jeffrey D. Segal, A Skilled Company and Kirkland & Ellis LLP function authorized counsel.
About Cronos Group Inc.
Cronos Group is an progressive world cannabinoid firm with worldwide manufacturing and distribution throughout 5 continents. Cronos Group is dedicated to constructing disruptive mental property by advancing cannabis analysis, know-how and product growth. With a ardour to responsibly elevate the buyer expertise, Cronos Group is constructing an iconic model portfolio. Cronos Group’s portfolio contains PEACE NATURALS™, a worldwide well being and wellness platform, and two adult-use manufacturers, COVE™ and Spinach™. To be taught extra about Cronos Group and its manufacturers, please go to: www.thecronosgroup.com; www.peacenaturals.com; www.covecannabis.ca; www.spinachcannabis.com.
This information launch accommodates “forward-looking data” and “forward-looking statements” throughout the which means of relevant Canadian and U.S. securities legal guidelines. All data contained herein that isn’t clearly historic in nature might represent forward-looking data. In some instances, forward-looking statements may be recognized by phrases or phrases similar to “might”, “will”, “anticipate”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “imagine” or the destructive of those phrases, or different related expressions supposed to determine forward-looking statements. A number of the forward-looking statements contained on this press launch embody the completion of the transaction and timing thereof, the receipt of the required regulatory approvals required for completion of the transaction, the anticipated advantages of the acquisition, the power of the Firm to proceed, per relevant regulation, to develop, manufacture, distribute and promote hemp-based merchandise in america and internationally, the Firm’s intention to construct a global iconic model portfolio and develop disruptive mental property. Ahead-looking statements are essentially primarily based upon numerous estimates and assumptions that, whereas thought-about affordable by administration, are inherently topic to vital enterprise, financial and aggressive dangers, uncertainties (together with the applying of State and federal regulation to CBD merchandise and the scope of any rules by the FDA over CBD merchandise) and contingencies which will trigger precise monetary outcomes, efficiency or achievements to be materially totally different from the estimated future outcomes, efficiency or achievements expressed or implied by these forward-looking statements and the forward-looking statements will not be ensures of future efficiency. A dialogue of among the materials dangers relevant to the Firm may be discovered within the Firm’s present Administration’s Dialogue and Evaluation and Annual Data Kind, each of which have been filed on SEDAR and EDGAR and may be accessed at www.sedar.com and www.sec.gov/edgar, respectively. The forward-looking data included on this information launch is made as of the date of this information launch and, besides as required by regulation, Cronos Group disclaims any obligation to replace or revise any forward-looking statements. Readers are cautioned to not put undue reliance on these forward-looking statements.
Investor Relations Contact:
Tel: (416) 504-0004
Barrett Golden, Adam Pollack or Mahmoud Siddig
Joele Frank, Wilkinson Brimmer Katcher
Tel: (212) 355-4449
Supply: Cronos Group Inc.