Cronos Group Inc. Announces Receipt of Notice of Relinquishment of Warrant by Altria

Rhea-AI Summary

Cronos Group Inc. announced the voluntary relinquishment of a warrant by Altria Group's subsidiary, Altria Summit LLC, allowing the purchase of up to 84,243,223 common shares at C$19.00 per share. This decision was made on December 16, 2022, without any financial consideration. Despite this, Altria retains ownership of 156,573,537 common shares and four board designees, ensuring continued influence. The relinquishment does not alter Altria's rights under the Investor Rights Agreement established in 2019.

Positive

• Altria retains significant ownership of 156,573,537 common shares, indicating ongoing support.
• Altria maintains four designees on Cronos' board, ensuring influence in company decisions.

Negative

• The relinquishment of the warrant may signal reduced confidence from Altria in Cronos' stock performance.

TORONTO, Dec. 19, 2022 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company”) today announced that on December 16, 2022, Altria Group, Inc. (“Altria”) notified the Company that its wholly owned subsidiary, Altria Summit LLC, relinquished a warrant to subscribe for and purchase up to 84,243,223 common shares of the Company at a per share exercise price of C$19.00 (the “Warrant”) and all rights that it may have held in the Warrant or any common shares underlying the Warrant for no consideration. The voluntary relinquishment of the Warrant does not affect any rights of Altria under the Investor Rights Agreement between the Company and Altria, dated March 8, 2019. Altria continues to beneficially own 156,573,537 common shares of the Company and has four designees on the board of the Company, one of whom is independent.

About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach^®, PEACE NATURALS^®, Lord Jones^®, Happy Dance^® and PEACE+^®. For more information about Cronos and its brands, please visit: thecronosgroup.com.

Forward-looking Statements
This press release may contain information that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the period ended September 30, 2022, both have which been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.

Cronos Contact
Shayne Laidlaw
Tel: (416) 504-0004
investor.relations@thecronosgroup.com 

FAQ

What did Cronos Group Inc. announce on December 16, 2022?

Cronos Group announced that Altria's subsidiary relinquished a warrant for 84,243,223 common shares.

What is the exercise price of the relinquished warrant by Altria?

The exercise price of the relinquished warrant was C$19.00 per share.

Does the relinquishment of the warrant affect Altria's rights in Cronos?

No, the relinquishment does not affect Altria's rights under the Investor Rights Agreement.

How many common shares does Altria still own in Cronos?

Altria continues to own 156,573,537 common shares of Cronos Group.