Financial Overview and Strategic Insights
STRATEGIC INVESTMENT IN PHARMACANN, A LEADING U.S. CANNABIS COMPANY
Investment is Expected to Position Cronos Group to Benefit from Rapid Growth in the U.S. Cannabis Market
CRONOS
GROUP
PHARMACANN
Investment Overview and Strategic Rationale
On June 14, 2021, Cronos Group announced a strategic investment in
PharmaCann.
A wholly-owned subsidiary of Cronos Group purchased an option to acquire
an approximately 10.5% ownership stake in PharmaCann on a fully-diluted
basis for a total consideration of approximately $110.4 million.
Following the exercise of the option (which will be based upon various
factors, including the status of U.S. federal cannabis legalization), Cronos
Group and PharmaCann will enter into commercial agreements that would
permit each party to offer its products through either party's distribution
channels.
On February 28, 2022, PharmaCann completed the acquisition of LivWell
Holdings, Inc. ("LivWell").
As of December 31, 2023, the Company's ownership percentage in
PharmaCann on a fully diluted basis was approximately 5.9%.
Source: PharmaCann Website, Cronos Group Filings
WA
PharmaCann's Geographic Footprint
VT
ME
MT
ND
OR
MN
ID
SD
WI
NY
MA
WY
MI
CT
RI
IA
PA
NJ
NE
NV
OH
DE
UT
IL
IN
CO
WV
MD
CA
KS
VA
MO
KY
DC
NC
TN
OK
AZ
NM
AR
SC
MS AL
GA
TX
LA
FL
PharmaCann has a broad geographic footprint in the U.S. and has built an
efficient, effective and scalable operating model across the following eight
states: New York, Illinois, Ohio, Maryland, Pennsylvania, Michigan, Colorado and
Massachusetts.
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