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Cronos Group Secures $40M in Debt for Domestic Capacity Expansion
Cronos Group Secures $40M in Debt for Domestic Capacity Expansion Canada NewsWire ...
About this update from Cronos Group Inc
[{"type":"text","content":"\n\n\n\nCronos Group Secures $40M in Debt for Domestic Capacity Expansion\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Aug. 24, 2017\n\n\n\nTORONTO, Aug. 24, 2017 /CNW/ - Cronos Group Inc. (TSXV:MJN) (OTC: PRMCF) (\"Cronos\" or the \"Company\") is announcing today that it has entered into a commitment letter for $40 million in debt financing with Romspen Investment Corporation (\"Romspen\") to fund the continued construction of its 315,000 sq. ft. expansion (the \"New Peace Facility\") previously outlined in the Company's press release dated May 23, 2017. \n\n\n \n \n\n \nUnder the commitment letter, Romspen has agreed to provide the $40 million senior secured facility (the \"Loan\") to the Company's wholly-owned licensed producer, Peace Naturals Project Inc. (\"Peace\").  The Loan is secured by a first mortgage on the real estate of each of Peace and In The Zone Inc. (\"ITZ\"). ITZ, Hortican Inc. and the Company are also guarantors of the Loan.  Under the Loan, the Company retains its ability to enter into equipment financing arrangements.\n\nThe Loan will be made available in multiple advances which are expected to begin in September 2017.  Advances will be subject to ongoing conditions, including Romspen's approval of construction progress.  The Loan bears interest at a rate of 12% per annum (interest only accrues on advances made), has a 2 year term with a one-year extension option, and is prepayable on one-month's notice.  \n\n\"Given the speed at which we anticipate payback of investment in the New Peace Facility, we prioritized accessing the debt markets to fund this domestic expansion.  We always look for ways to enhance shareholder value and we're pleased to be able to work with Romspen again to deliver that value,\" said Mike Gorenstein, CEO of Cronos. \n\nCompany Grants Options\n\nAdditionally, the Company has granted options to subscribe to 2,903,000 common shares of the Company to certain of the Company's employees and directors, the whole in accordance with the Company's stock option plan. Th...