TORONTO, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) ("Cronos" or the "Company") today announced that its wholly owned subsidiary entered into an agreement (the "Sale Agreement") with Future Farmco Canada Inc. (the "Buyer"), a vertical farming company, for the sale and leaseback of its property located at 4491 Concession 12 Sunnidale Road, Stayner, Ontario, Canada, L0M 1S0 (the "Peace Naturals Campus"). Pursuant to the terms of the Sale Agreement, the Buyer has agreed to acquire the Peace Naturals Campus for C$23 million cash, subject to the terms and conditions set forth therein. The parties also plan to enter into a lease agreement upon closing for portions of the Peace Naturals Campus, ensuring continued operations.
"The sale-leaseback of the Peace Naturals Campus supports Cronos' goal to reduce costs across the Company," said Mike Gorenstein, Chairman, President and CEO, Cronos. "More specifically, this sale will aid in improving the gross margin profile of our business, while lowering costs and increasing our agility. This sale only strengthens our industry-leading balance sheet and allows us to continue to pursue organic growth and future transactions that bolster Cronos' existing value. We do not expect any interruption to our current operations and plan to carry out existing growth plans within our leased space at the facility."
Closing of the transaction is subject to certain conditions outlined in Cronos' Form 8-K. Within 180 days of the Sale Agreement date, the Buyer must confirm in writing that it is satisfied with various aspects of the property and has secured financing for the transaction. ...