Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced on Monday that its wholly-owned subsidiary entered into an agreement with Future Farmco Canada Inc., a vertical farming company, for the sale and leaseback of its Ontario, Cananda-based property.
What Happened
Under the deal, Future Farmco agreed to acquire Peace Naturals Campus at 4491 Concession 12 Sunnidale Road for CA$23 million ($16.9 million in cash).
The parties also plan to enter into a lease agreement upon closing for portions of the Peace Naturals Campus, ensuring continued operations.
That deal will include a five-year term and one five-year renewal option that may be exercised by Cronos.
Cronos will also have an option to lease certain additional space during the term of the lease.
Why It Matters
Mike Gorenstein, chairman, president and CEO of the Toronto-based company said the deal is part of Cronos’ efforts to reduce costs.
“More specifically, this sale will aid in improving the gross margin profile ...