Cronos Group Inc (CRON)

[oatsuzn]

CRONOS GROUP PROVIDES UPDATE ON MINORITY INVESTMENTS

http://thecronosgroup.com/press-release/cronos-group-provides-update-minority-investments/

Cronos Group Provides Update on Minority Investments

TORONTO, ON–(Marketwired – April 24, 2017)
Cronos Group Inc. (formerly PharmaCan Capital Corp.) (TSX VENTURE: MJN) (“Cronos”, or the “Company”) is providing an update on its investments in Whistler Medical Marijuana Corporation (“Whistler”), The Hydropothecary Corporation (“Hydropothecary”), ABcann Medicinals Inc. (“ABcann”), Evergreen Medicinal Supply Inc. (“Evergreen”), and CannMart Inc. (“CannMart”).

Whistler
As previously announced, Cronos recently completed its additional equity investment in Whistler and maintained the Company’s 21.5% equity position. This additional capital will assist Whistler with their announced 65,000 square foot expansion in Pemberton, British Columbia. This expansion is expected to be completed by spring of 2018 in advance of recreational legalization in Canada.

Hydropothecary
Cronos holds a minority equity position in Hydropothecary, which recently started trading on the Toronto Venture Exchange on March 21st, 2017 under the symbol “THCX”. Hydropothecary is the only licensed producer in Quebec and is currently operating and expanding on its 80 acres of land near Gatineau, QC.

ABcann
ABcann recently announced a reverse takeover with Panda Capital Inc., which shall constitute ABcann’s qualifying transaction. ABcann is licensed to produce up to 625 kg per year at their flagship Vanluven facility situated near Napanee, ON. Abcann recently supplemented its executive and advisory teams and undertook significant expansion initiatives at both their existing licensed facility as well as their expansion property.

Evergreen
Cronos completed its subscription for a second tranche of shares of Evergreen for $100,000 and exercised its option to acquire an additional 5% of the equity for $500,000, for a total additional investment of $600,000. Cronos satisfied this obligation in part by directing that debt owed by Evergreen be applied as payment for the equity and delivered the remainder of the payment in cash. However, Evergreen claims that Cronos is not entitled to any interest in Evergreen and has rejected Cronos’ payment.

Cronos filed a statement of claim in the Supreme Court of British Columbia and intends to vigorously pursue the enforcement of its rights to acquire equity in Evergreen in addition to Evergreen’s repayment of the debt. While there can be no assurance that Cronos will acquire its equity in Evergreen, management believes that Cronos is entitled to the relief sought in its statement of claim.

CannMart
Cronos no longer intends to retain an investment in CannMart and CannMart has agreed to return the $25,000 previously paid by Cronos in respect of its proposed equity investment in CannMart.