Cronos Group Announces $100M Bought Deal

The Cronos Group (NASDAQ: CRON) (TSX-V: CRON) announced this morning that the company has entered into an agreement with  GMP Securities L.P. and BMO Capital Markets to sell 10,420,000 common shares, on a “bought deal” basis, at a price of $9.60 per common share, which will lead to a raise of $100.0 million. 

The Cronos Group currently has operations in Canada and owns Peace Natural  and OGBC, two companies that are licensed to cultivate and distribute cannabis product throughout the country. Cronos group intends to use the capital to expand capacity as well as, to venture abroad expanding their operations internationally.

Though the capital raise is not complete, the registration statement statement has been filed with the U.S. Securities and Exchange Commission and the company has filed a preliminary short form prospectus with securities regulatory authorities in all of the provinces of Canada.