Toronto-based cannabis producer Cronos Group (TSX-V: MJN) (OTC: PRMCF) closed its previously announced bought deal public offering, including the over-allotment, on January 24. Over 5 million shares of Cronos Group were sold at $8.75 per share, raising roughly $46.0 million.
Cronos will use the funds for expanding production capacity, research and development initiatives, and for working capital.
Cronos Group is a geographically diversified and vertically integrated cannabis company building an international cannabis brand portfolio. It has two wholly-owned licensed subsidiaries and a several minority investments in other licensed producers. Its two main subsidiaries, Peace Naturals Project (Ontario) and Original BC Ltd. (British Columbia), sit on over 125 acres of agricultural, licensed land.
The deal was underwritten by a syndicate led by PI Financial Corp. and included GMP Securities L.P., Beacon Securities Limited, and Cormark Securities Inc.