Australian Law Firm Acts For Medical Cannabis Company, Cronos Australia

The Thomson Geer team was led by Adam Brooks, supported by Wendy Miller, Matthew Persico and Ebru Davidson.

The AFR has the details

Medicinal marijuana company Cronos Australia is seeking to raise $20 million at $0.50 a share for its initial public offering.

The company, which is structured as a joint venture with NASDAQ-listed global cannabinoid company Cronos Group, is offering 40 million shares

More at https://www.afr.com/companies/agriculture/medicinal-cannabis-company-cronos-australia-switches-tack-for-ipo-20191017-p531i7

And from Investors.com (Australia)

The joint venture, Cronos Australia, wants to offer around 40 million new shares priced at 50 Australian cents, it said in a statement. That amount brings the total proceeds to 20 million Australian dollars. Much of that will be used for product and business development and acquiring patients.

Cronos Australia also plans to list on the Australian Securities Exchange. It expects to have a market value of 64.4 million Australian dollars when the offering is completed.

Cronos Group, based in Canada, is expected to have a roughly 31% stake of Cronos Australia’s issued capital when the offering is completed.

When Cronos formed the joint venture last year, with NewSouthern Capital, it owned 50% of the joint venture, with equal board representation. Cronos Group said it hoped the joint venture would serve as a supply hub for Australia, New Zealand and Southeast Asia, as those markets opened up.

Cronos Group CEO Mike Gorenstein, in a statement Wednesday, said the offering enabled Cronos Group to “unlock value for our stakeholders while also continuing to participate in Cronos Australia’s growth.”

Gorenstein and Jason Adler, who is on Cronos Group’s board of directors, hold board seats on Cronos Australia, which is led by Rodney Cocks, a onetime consultant at the Boston Consulting Group, and Peter Righetti, who has a background in real estate.

Cocks and Righetti co-founded NewSouthern Capital.

Not For The Public

Cronos Australia does not plan to make the offering available to the general public. The offering is open to institutional investors, resident investors in Australia who have an allocation from their broker, and investors in Australia nominated by Cronos Australia, that company said.

Cronos had been at work on building out a 20,000 square foot indoor grow facility in Melbourne.

According to a prospectus released by Cronos Australia, it had the licenses needed for cannabis cultivation, research and manufacturing. It also had export and import licenses, and permits needed to bring Cronos Group’s Peace Naturals cannabis products.

Similar to Cronos, the Australian company plans to use take an “asset light” approach to the business — characterized by outsourced growing and production. The company has not yet made any sales.

Cronos Australia’s vision, they say,  is to become a leading health and wellness company in the region, focusing on premium cannabis products.

Adam Brooks said of the deal, “It was a pleasure to assist Cronos Australia through its journey to date.  Cronos Australia has assembled a highly experienced and impressive leadership team, and several attributes that position it well to achieve its growth strategy.”

Learn more about Cronos. Click on image

and….

Overview

Cronos Australia is a Melbourne-based company that is committed to providing Australian patients with access to the highest quality medicinal cannabis products, as well as supplying export markets globally. Established as a 50/50 joint venture between leading global cannabis producer, The Cronos Group Inc.(NASDAQ: CRON, TSX: CRON), and Australian based private equity firm, NewSouthern Capital, we have cutting-edge intellectual property and technology, advanced cultivation and manufacturing know-how and access to established distribution channels. Working closely with government, Cronos Australia has already been granted a Medicinal Cannabis Licence (cultivation and production), Cannabis Research Licence (cultivation and production) and a Manufacture license by the Australian Federal Health Department’s Office of Drug Control. Construction is set to commence shortly on our world-leading scalable production and research facility which will be built on a 120-acre site in regional Victoria, Australia. This facility has been designed to meet best-in-class quality standards, including Good Manufacturing Practices (GMP) and Good Production Practices. (Linked In)

 

Primary Sponsor

 


Karma Koala Podcast

Top Marijuana Blog