Cronos signs deal to secure CA$30 million for marijuana R&D

A Canadian medical marijuana producer introduced a stock-purchase deal to increase 30 million Canadian dollars ($24 million) in capital, which it intends to apply to analysis and improvement.

After the deal closes later this month, Cronos may have raised greater than CA$120 million because the starting of 2017, together with CA$40 million in debt.

Stayner, Ontario-based Cronos additionally stated in a information launch it has given the underwriters concerned within the transaction the choice to purchase a further CA$four.5 million value of inventory, which might improve the acquisition to CA$34.5 million.

Cronos – traded on the TSX Venture Exchange underneath the image MJN – has been increasing its manufacturing footprint in Canada and abroad.

Its expanded indoor manufacturing facility in Stayner is on schedule to be operational earlier than July, with the primary harvest coming in August or September.

Four months in the past, Cronos turned the primary Canadian MMJ firm to announce a manufacturing facility abroad for international exports.

CEO Mike Gorenstein informed Marijuana Business Daily that R&D is a key plank for Cronos.

“We look at what will propel us forward in terms of product development, R&D, technology and a center of excellence for all of our operations,” he stated. “The key here is that we don’t view this as just capacity.”

Matt Lamers could be reached at [email protected]

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