Cronos Group Inc. Files 8-K with Material Agreement

TL;DR

Cronos Group Inc. signed a big deal on June 20th, filing an 8-K. Details in exhibits.

AI Summary

On June 20, 2024, Cronos Group Inc. entered into a material definitive agreement related to its business. The filing also includes other events and financial statements and exhibits. The company is incorporated in British Columbia, Canada, with its principal executive offices in Toronto, Ontario.

Why It Matters

This 8-K filing indicates a significant development for Cronos Group Inc., potentially impacting its operations and financial standing through a new material definitive agreement.

Risk Assessment

Risk Level: medium — Material definitive agreements can introduce new risks or opportunities that may affect the company's future performance.

Key Players & Entities

• Cronos Group Inc. (company) — Registrant
• June 20, 2024 (date) — Date of earliest event reported
• 111 Peter Street, Suite 300 Toronto, Ontario M5V 2H1 (address) — Principal executive offices
• PharmaCan Capital Corp. (company) — Former company name

FAQ

Key Financial Figures

• $105 million — by Bert Mucci (the " Mucci Group "), a C$105 million secured non-revolving credit facility (
• $70 million — ases the amount available to GrowCo by C$70 million by providing a second secured non-revol
• $175 million — he total amount available to GrowCo to C$175 million. The funds from Term Loan B will be use
• $12 m — gregate principal amount not to exceed C$12 million, and only on or after July 1, 202
• $12 million — ggregate principal amount in excess of C$12 million and up to the Term Loan B commitment of

Filing Documents

• cron-20240620.htm (8-K) — 41KB
• exhibit101-arcreditagreeme.htm (EX-10.1) — 724KB
• exhibit102-3rdamendedandre.htm (EX-10.2) — 374KB
• image_0a.jpg (GRAPHIC) — 95KB
• 0001656472-24-000078.txt ( ) — 1582KB
• cron-20240620.xsd (EX-101.SCH) — 2KB
• cron-20240620_def.xml (EX-101.DEF) — 3KB
• cron-20240620_lab.xml (EX-101.LAB) — 23KB
• cron-20240620_pre.xml (EX-101.PRE) — 13KB
• cron-20240620_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Credit Agreement On June 20, 2024, Cronos Group Inc. (the " Company ") announced that Peace Naturals Project Inc., its wholly owned subsidiary (" PNP "), entered into an amended and restated credit agreement (the " Credit Agreement ") among Cronos Growing Company Inc. (" GrowCo "), as borrower, the lenders from time to time parties thereto and PNP, as administrative agent. The Company previously made available to GrowCo, a joint venture 50% owned by the Company and 50% owned a group of investors led by Bert Mucci (the " Mucci Group "), a C$105 million secured non-revolving credit facility (" Term Loan A "). The Credit Agreement increases the amount available to GrowCo by C$70 million by providing a second secured non-revolving credit facility (" Term Loan B "), increasing the total amount available to GrowCo to C$175 million. The funds from Term Loan B will be used to expand its purpose-built cannabis facility (" Phase 2 "). Term Loan A will mature on March 31, 2031 and bears interest at the Canadian prime rate plus 1.25%. Interest payments and principal repayments on Term Loan A are made on a quarterly basis until maturity. Term Loan B will mature 10 years after the commencement of sales from the Phase 2 expansion area (the " Phase 2 Cultivation Date "), which are anticipated to begin in the second half of 2025, and bears interest at the Canadian prime rate plus 1.25%. Repayment of principal with respect to Term Loan B is not required until the Phase 2 Cultivation Date, following which, principal will be repaid on a quarterly basis. Interest on Term Loan B is payable on a quarterly basis until maturity beginning after the first borrowing under Term Loan B. Prior to July 1, 2024, GrowCo may only request borrowings under Term Loan B in an aggregate principal amount not to exceed C$12 million, and only on or after July 1, 2024 may GrowCo request borrowings under Term Loan B in an aggregate principal amount in

01. Other Events

Item 8.01. Other Events. Effective July 1, 2024, the GrowCo board of directors will expand to five members, three of whom will be appointed by the Company. The Company expects to consolidate GrowCo's results of operations in its financial statements beginning in the third quarter of 2024.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 * Amended and Restated Credit Agreement, dated as of June 20, 2024, by and among Cronos Growing Company Inc., as Borrower, the Lenders from time to time parties thereto and Peace Naturals Project Inc., as Administrative Agent. 10.2 * Amended and Restated Supply Agreement, dated as of June 20, 2024, by and between Cronos Growing Company Inc. and Peace Naturals Project Inc. 104 Cover Page Interactive Data File – The cover page from Cronos Group Inc.'s Current Report on Form 8-K filed on June 25, 2024 is formatted in Inline XBRL. * Schedules and certain portions of this exhibit have been omitted pursuant to Item 601(a)(5) and Item 601(b)(10)(iv) of Regulation S-K. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CRONOS GROUP INC. Dated: June 25, 2024 By: /s/ Michael Gorenstein Name: Michael Gorenstein Title: President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR