Cronos Group has entered into a credit agreement as administrative agent and lender for a $100 million secured non-revolving term loan credit facility with Cronos Growing as borrower.
Cronos Group and a group of investors led by Bert Mucci intend to use the funds available to fund the construction of the previously announced custom-built greenhouse and for general operating purposes. Completion of construction of the facility is subject to obtaining the relevant building and occupancy permits and other customary approvals. Commencement of operations at Cronos GrowCo will be subject to obtaining the appropriate licenses under applicable law.
The credit facility will mature on March 31, 2031 and will bear interest at varying rates based on the Canadian prime rate. Interest will begin to accrue as of the closing date and will be payable on a quarterly basis until maturity, except that any interest accrued prior to March 31, 2021 will be payable not later than December 31, 2021. The credit facility is secured by substantially all present and after acquired property of GrowCo and its subsidiaries. The Greenhouse Partners have also provided a limited recourse guarantee in favour of the company, secured by the Greenhouse Partners’ shares in GrowCo.
“We regularly evaluate our supply chain opportunities, including those within our asset footprint to ensure we are driving the greatest returns and best positioning Cronos Group for long-term success. As part of this work, we have decided to provide the debt funding for the GrowCo joint venture,” said Jerry Barbato, CFO of Cronos Group. “The management team at GrowCo have been great partners, and we value the expertise they continue to bring to this project.”_x000D_
Cronos Group is an innovative global cannabinoid company with international production and distribution across five continents.
