Cronos Group Inc. (TSX VENTURE: MJN) announced it has increased the size of its previously announced bought deal financing by 33%, from $30 million to approximately $40 million, representing 4.5 million shares at a price of $8.75 per share.
Cronos has granted the underwriters an option to purchase up to 685,714 additional shares on the same terms any time up to 30 days following the closing date, estimated to be January 26, 2018, subject to certain conditions.
These shares will be offered throughout Canada, except for Quebec. The underwriters, led by PI Financial, may choose to also sell in the United States through its U.S. brokerage affiliate to investors who qualify.
Cronos Group is a geographically diversified and vertically integrated cannabis company that operates two wholly-owned licensed producers (LPs) and holds minority investments in other LPs. Their flagship LPs, Peace Naturals Project Inc. (Ontario) and Original BC Ltd. (British Columbia), have over 125 acres of agricultural, licensed land.
Shares rose today 7.8% to $8.68 on volume of 1.3 million shares. The company has a market cap of $1.2 billion.