Cronos Group Establishes New Development Chance in the United States with Acquisition of Hemp-Primarily based Goods Platform
TORONTO, Aug. 02, 2019 (GLOBE NEWSWIRE) — Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“ Cronos Group ” or the “ Organization ”) right now announced that it has entered into a definitive agreement to obtain 4 of Redwood Holding Group, LLC’s operating subsidiaries (collectively, “ Redwood ”).
Redwood manufactures, markets and distributes hemp-derived cannabidiol (CBD) infused skincare and other customer goods on the web and by means of retail and hospitality companion channels in the United States beneath the brand, Lord Jones™. Redwood’s goods use pure hemp oil that consists of all-natural phytocannabinoids and terpenes identified in the plant.
Redwood was co-founded in 2017 by Robert Rosenheck and Cindy Capobianco. Following the close of the transaction, Mr. Rosenheck and Ms. Capobianco will join Cronos Group and continue to lead the improvement of the Redwood platform with the help of the present group, brand names and operating places remaining in location.
Rob and Cindy have constructed a differentiated, finest-in-class platform with hemp-primarily based CBD formulations that stand for high quality and consistency. Our purpose is to preserve the integrity of all Rob and Cindy have produced, though also mastering from them and leveraging Cronos Group’s sources to capitalize on the considerable demand for skincare and other customer goods derived from hemp.
Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer
Top the market forward responsibly and becoming a aspect of the conversation with market stakeholders remains a major priority for Cronos Group in this evolving location.
“The inspiration for our business was basic, we wanted to generate a brand we wished we could acquire as adult buyers,” mentioned Mr. Rosenheck. “We chose Cronos Group mainly because they share our vision and values and will support us continue our mission. We are extremely proud of our group and grateful to our shoppers who are accountable for our achievement. Cindy and I appear forward to functioning with Cronos Group to additional extend the really like and enthusiasm for our goods.”
Below the terms of the agreement, Cronos Group will obtain Redwood for roughly USD $300 million, net of Redwood’s estimated money and debt and topic to a customary functioning capital adjustment as described in the agreement. USD $225 million of the total consideration (topic to the foregoing adjustments) will be paid in money with the balance paid in newly issued Cronos Group popular shares. Cronos Group will fund the money portion of the transaction with money on hand.
The transaction is anticipated to close in the third quarter of 2019, topic to customary closing circumstances and regulatory approvals. Additional information and facts with regards to the transaction is integrated in Cronos Group’s material transform report with respect thereto, accessible at www.sedar.com, and in its corresponding Kind six-K, accessible at www.sec.gov/edgar.
Perella Weinberg Partners LP is monetary advisor to Cronos Group, and Sullivan & Cromwell LLP and Blake, Cassels & Graydon LLP serve as legal counsel. Lazard Ltd. is monetary advisor to Redwood Holding Group, LLC, Jeffrey D. Segal, A Skilled Corporation and Kirkland & Ellis LLP serve as legal counsel.
About Cronos Group Inc.
Cronos Group is an revolutionary international cannabinoid business with international production and distribution across 5 continents. Cronos Group is committed to creating disruptive intellectual house by advancing cannabis investigation, technologies and item improvement. With a passion to responsibly elevate the customer expertise, Cronos Group is creating an iconic brand portfolio. Cronos Group’s portfolio contains PEACE NATURALS™, a international overall health and wellness platform, and two adult-use brands, COVE™ and Spinach™. To study a lot more about Cronos Group and its brands, please go to: www.thecronosgroup.com www.peacenaturals.com www.covecannabis.ca www.spinachcannabis.com.
Original press release
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