An anonymous director reports
CRONOS GROUP INC. ANNOUNCES CLOSING OF $65 MILLION CREDIT FACILITY
Cronos Group Inc. has entered into a credit agreement with Canadian Imperial Bank of Commerce as administrative agent and lender and Bank of Montreal as lender in respect of a $65-million secured non-revolving term loan credit facility. The company intends to use the funds available under the credit facility to repay the company's existing loan facility with Romspen Investment Corp. and for general corporate purposes pending the closing of the company's previously announced equity investment by Altria Group Inc. The company intends to repay the credit facility with a portion of the proceeds from the investment.
The credit facility will mature on July 23, 2019, unless extended to Sept. 7, 2019, with the consent of the lenders.
The credit facility includes an accordion feature whereby, subject to the terms and conditions of the credit agreement, the credit facility may be increased by up to an additional maximum aggregate principal amount of $15-million. The credit facility will bear interest at varying margins based on the Canadian prime rate or the bankers acceptance rate, at the option of the company. The credit facility is guaranteed by the company's wholly owned Canadian subsidiaries, and the obligations under and in connection with the credit facility are secured by substantially all present and after-acquired property of the company and its wholly owned Canadian subsidiaries.
The credit agreement contains customary representations and warranties and financial and restrictive covenants. Advances under the credit facility are subject to customary conditions.
The investment remains on track to close in the first half of 2019 and is subject to certain customary closing conditions, including the receipt of regulatory approval under the Investment Canada Act and approval by at least a majority of the votes cast by holders of common shares of the company, in person or by proxy, at the special meeting of shareholders scheduled for Feb. 21, 2019. A management information circular dated Dec. 31, 2018, has been filed in connection with the meeting on SEDAR and EDGAR.
About Cronos Group
Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across five continents. Cronos Group operates two wholly owned Canadian licensed producers: Peace Naturals Project Inc., which was the first non-incumbent medical cannabis licence granted by Health Canada, and Original B.C. Ltd., which is based in the Okanagan Valley, British Columbia. Cronos Group intends to continue to rapidly expand its global footprint as it focuses on building an international iconic brand portfolio and developing disruptive intellectual property. Cronos Group is committed to building industry-leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.
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