Canada’s marijuana company Cronos has purchased an option to acquire a 10.5% stake in PharmaCann for $110.4 million.
The company announced on Monday that it has purchased an option to acquire a 10.5% stake in U.S. PharmaCann. Under the terms of the deal, the option can be exercised upon various factors, including the status of U.S. federal cannabis legalization, as well as regulatory approvals, including in states where PharmaCann operates.
PharmaCann has six production facilities and 23 dispensaries operating under the Verilife brand in six states – New York, Illinois, Ohio, Maryland, Pennsylvania and Massachusetts.
“Our U.S. growth strategy focuses on delivering long term shareholder value by assembling a best-in-class brand and intellectual property portfolio and positioning to deploy our products in the U.S. market through investments and opportunities with U.S. leaders who share our vision and commitment to responsibly distributing disruptive cannabinoid products that improve people’s lives,” said Cronos CEO Kurt Schmidt.
“We were attracted to PharmaCann as an investment because of their disciplined capital allocation, strong track-record and compelling licensed manufacturing and retail footprint. Further, we are excited to partner with PharmaCann because of our shared commitment to elevating product quality and consistency through science and best in class operations and manufacturing,” he added.
“We are pleased to announce our strategic alliance with Cronos Group,” said Brett Novey, Chief Executive Officer of PharmaCann. “This investment validates our position as a leading vertically integrated U.S. cannabis company and highlights our ability to continue to expand and enhance our strong asset base. We are excited to work with Cronos Group as we advance PharmaCann’s mission to improve people’s lives through cannabis.”
Cronos shares have gained 28% in the year to date.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.
