TORONTO, Nov. 9, 2017 /CNW/ - Cronos Group Inc. (TSX-V: MJN) (OTC – Nasdaq Int'l Designation: PRMCF) ("Cronos" or the "Company") is pleased to announce that its previously announced strategic joint venture ("Cronos Israel") with Kibbutz Gan Shmuel ("Gan Shmuel") for the production, manufacture, and global distribution of medical cannabis, has been approved by the TSX Venture Exchange.
Israel's climate, which is ideal for year-round greenhouse cultivation, coupled with Gan Shmuel's existing infrastructure and skilled labor force, will enable Cronos Israel to produce high quality medical cannabis at an expected cost of between $0.40 and $0.50 per gram. Additionally, Gan Shmuel is situated on 4,939 acres of mixed-use agricultural/industrial land, which provides the ability to expand capacity well beyond 100,000 KG annually to meet demand in Israel, Germany, and future distribution channels.
Key Additions to Senior Leadership Team
Xiuming Shum joins Cronos as General Counsel with eight years of transactional and in-house experience in mergers and acquisitions ("M&A") and regulatory change management. Most recently, Xiuming served as in-house counsel at BNP Paribas' Corporate and Institutional Banking division in New York and London, providing advice to senior management on disruptive and transformative legislative changes, such as the BASEL banking reforms, Brexit, and the Dodd-Frank Act. Previously, she was a corporate attorney at Sullivan & Cromwell LLP in New York, where she focused on M&A in large, complex cross-border transactions in diverse industries, including alcohol and spirits, insurance, banking, private equity, and hedge funds. Xiuming is a New York-qualified attorney, holding a J.D. from Columbia Law School (Harlan Fiske Stone Scholar) and a first-class Bachelor of Laws degree from University College London in the U.K.
Kevin Gifford joins Cronos as Vice President of Finance and Corporate Development with over 15 years of experience in both operating and investing in companies across multiple industries, including consumer products, business services, retail and technology. Prior to joining Cronos, Kevin held a range of diverse investment roles at several private equity firms, as well as the Americas Special Situations Group at Goldman Sachs & Co., where he originated and executed transactions across the entire capital structure for middle-market companies. Additionally, Kevin worked in Deloitte's Corporate Restructuring Group, where he improved performance of distressed companies in an interim C-level management or financial advisory capacity. Kevin holds a degree in economics from the Wharton School at the University of Pennsylvania and an M.B.A. from the University of Michigan.
Ran Gorelik joins Cronos as General Manager of Cronos Israel with over 20 years of entrepreneurial and operational experience in biotech and healthcare. Ran served for four years in the Israeli special forces and, additionally, has extensive experience in real estate finance and development in Israel, Spain, Slovakia and the Czech Republic. Ran holds a degree in mechanical engineering from the New York Institute of Technology. His experience will be critical to executing the ongoing expansion initiatives at Cronos Israel, vetting new Israeli research and technology, and implementing Cronos Israel's domestic distribution strategy.
"I am excited to welcome these key team members to the Cronos Group. Their experience and insight will be valuable assets as we continue to execute on our global strategic initiatives," said Mike Gorenstein, CEO of Cronos.
Company Grants Options
The Company has granted stock options to subscribe to 200,000 common shares of the Company for certain employees in accordance with the Company's stock option plan. The options are exercisable at a price of $3.32 per common share, which was the closing price of the Company's common shares on the TSX-V on November 8, 2017. The options shall expire at the earlier of 180 days of the death, disability or incapacity of the holder, or five years after the date of issue. The grant of options is subject to the Company receiving all necessary and appropriate regulatory consents and approvals, if any, and to the Company's stock option plan.
About Cronos Group
Cronos Group is a geographically diversified and vertically integrated cannabis company that operates two wholly-owned Licensed Producers ("LPs") regulated within Health Canada's Access to Cannabis for Medical Purposes Regulations (the "ACMPR") and holds a portfolio of minority investments in other Licensed Producers. The Company's flagship LPs, Peace Naturals Project Inc. (Ontario) and Original BC Ltd. (British Columbia), are collectively situated on over 125 acres of agricultural, licensed land. Cronos Group is focused on building an international iconic brand portfolio, providing patients with personalized care, and creating value for our shareholders.
This news release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Except as required by law, Cronos Group disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements. This news release contains information obtained by Cronos Group from third parties. Cronos Group believes such information to be accurate but has not independently verified such information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.