Cronos (CRON) Observes Budding Growth in Cannabis Market, Announces Expansion of GrowCo

PRISM Emerging Cannabis Index company Cronos Group, Inc. (CRON) has announced an expansion of the company through GrowCo in which, Cronos owns 50% of. This investment will be funded by an additional credit facility through Cronos as it intends to aid in the expansion of GrowCo’s cannabis facility due to increased global cannabis demand.

This investment provides ~$51M secured non-revolving credit facility to GrowCo to fund facility expansion, will expand GrowCo board of directors to five members, allow Crosos the ability to purchase up to 70% of total production from the facility and the joint venture’s results will be consolidated in the company financials starting in the third quarter of 2024.

The expansion will assist in Cronos’ operations and increase their ability to supply markets in which they operate that include Canada, Israel, Germany, the United Kingdom, and Australia, while also fueling the potential for international expansion.