Cronos Re-Invests in Whistler as Part of Transformative Expansion
TORONTO, March 9, 2017 /CNW/ – Cronos Group Inc. (TSXV: MJN) (OTC: PRMCF) (“Cronos Group” or the “Company”) owns a 21.5% stake in Whistler Medical Marijuana Corp. (“WMMC” or “Whistler”) and is pleased to announce that WMMC has been granted an affirmation letter from Health Canada regarding the company’s announced 65,000 square foot expansion in Pemberton, British Columbia. Cronos continues to be impressed with the capital efficiencies, brand equity, premium organic product and the unique culture, vision and leadership at Whistler. Accordingly, the Company has decided to maintain its 21.5% equity position through an additional $1,085,000 investment (at a $75MM pre-money valuation) to help support WMMC’s next phase of growth.
Whistler was among the very first licensed producers in Canada and is the only actively selling LP whose entire product line is 100% certified organic. In response to significant growth in sales and increases in demand for WMMC products, Whistler is preparing to break ground on a new purpose-built expansion facility in Pemberton, located just 20 minutes from the company’s flagship facility. It is anticipated that Phase I of the expansion will be completed in the second quarter of 2018. In addition, Whistler plans to build another 80,000 square foot indoor cultivation facility with its Phase II expansion and possesses an option to expand on a neighbouring 160 acre land parcel in the future.
Whistler is more than just an iconic cannabis brand that produces top quality organic product; it embodies an aspirational lifestyle and culture that extends beyond cannabis. I have always admired Whistler for placing emphasis on perfecting its craft and for putting product quality above all else.
Mike Gorenstein, Chief Executive Officer of Cronos
We are excited to increase our strategic investment in Whistler and look forward to continuing to collaborate and share in the future success of our emerging companies and brands.
About The 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 and ACMPR applicants. The company’s flagship LPs, Peace Naturals Project Inc. (Ontario), and In The Zone Produce Ltd. (British Columbia) are collectively situated on over 125 acres of agricultural land and are currently licensed to produce 2,600 kg of cannabis on an annual basis. The Company also holds minority equity positions in Licensed Producers Whistler Medical Marijuana, Hydropothecary, and Abcann Medicinals. With interest in five Licensed Producers and two LP applicants, Cronos Group is focused on building an iconic brand portfolio, providing patients with compassionate and personalized care, and creating value for our shareholders.
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