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.
Cronos Group is openly using Vitura Health as a conduit.
TORONTO, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company” announced today that it is expanding distribution into the Australian market with its first shipment of cannabis flower to Vitura Health Limited (“Vitura” (ASX: VIT). Cronos owns approximately 10% of the common shares of Vitura, formerly known as Cronos Australia, and will supply cannabis for Vitura.
“Supplying the Australian market, which has grown significantly in the past three years, is a great milestone for Cronos as we aim to enter and expand within international markets,” said Mike Gorenstein, Chairman, President, and CEO, Cronos. “We look forward to working closely with our partners at Vitura to provide patients with high-quality cannabis products and establish our presence in Australia as a trusted cannabis partner."
Altria own around 41% of Cronos and claim they are aiming to "responsibly lead the transition of adult smokers to a smoke-free future".
Our Vision
is to responsibly lead the transition of adult smokers to a smoke-free future and led by Our Cultural Aspiration.
The tobacco industry is changing – and for the better. The future of our industry is about innovation, harm reduction and informed consumer choice. With FDA regulation of the tobacco industry in place, we focus our tremendous resources and talented people on reducing the risk of tobacco products and preventing underage use, while expanding choices for adult consumers. We're actively preparing for a time where adult smokers overwhelmingly choose smoke-free tobacco products over cigarettes.
Today, our portfolio of smoke-free products and investments includes leading products across heat-not-burn, moist smokeless tobacco, oral nicotine pouches and E-vapor.
VIT Price at posting:
13.5¢ Sentiment: Sell Disclosure: Held
announced today that it is expanding distribution into the Australian market with its first shipment of cannabis flower to Vitura Health Limited (“Vitura”
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