| Subsequent events |
| (a) |
On January 24, 2018, the Company announced the
closing of a bought deal offering, pursuant to which the Company
sold a total of 5,257,143 common shares at a price of $8.75 per
common share for aggregate gross proceeds of approximately $46,000.
The bought deal was completed by way of a short form prospectus
offering in Canada.
|
| (b) |
Subsequent to December 31, 2017, 10,823,795
warrants were exercised in exchange for $2,223 in cash, and 82,692
warrants expired on January 18, 2018.
|
| (c) |
Subsequent to December 31, 2017, a total of 342,256
options were exercised in exchange for $522 in cash. These options
had a weighted average exercise price of $1.53 per common
share.
|
| (d) |
Subsequent to December 31, 2017, 430,000
options were granted to various employees, which vest evenly over a
48 month period, with a weighted average exercise price of $8.61
per common share.
|
| (e) |
Subsequent to December 31, 2017, the Company
sold some of its shares of Canopy for proceeds of $687.
|
| (f) |
On March 9, 2018, Philip Illingworth filed a
claim in the Supreme Court of British Columbia against Evergreen,
its directors, Welton Construction Limited, 0611389 B.C. Ltd. and
Hortican, claiming among other things, declarations and an order
for specific performance that the plaintiff is the owner of 50% of
the shares of Evergreen. It is the opinion of the Company that the
plaintiff has not stated a valid claim against Hortican, and the
Company intends to vigorously defend this claim.
|
| (g) |
In September 2017, the Company announced a
strategic joint venture in Israel with the Israeli agricultural
collective settlement Kibbutz Gan Shmuel (“Gan
Shmuel”) for the production, manufacture and distribution
of medical cannabis. Following the transfer of the Israel licenses
from Gan Shmuel to Cronos Israel, the Company (through its wholly
owned subsidiary Cronos Global) will hold a 70% interest in each of
the nursery and cultivation operations and a 90% interest in each
of the manufacturing and distribution operations of Cronos Israel.
Subsequent to December 31, 2017, the Company advanced $1,000
to Cronos Israel to fund construction of building structures.
|
| (h) |
In March 2018, the Company announced a strategic
joint venture with MedMen Enterprises USA, LLC
(“MedMen”). The Company (through its wholly
owned subsidiary Cronos Canada Holdings Inc.) and MedMen each owns
a 50% equity interest in the joint venture, called MedMen Canada
Inc. (“MedMen Canada”) and have equal board
representation. MedMen Canada holds the exclusive license of the
MedMen brand in Canada for a minimum term of 20 years. Each of
Cronos and MedMen will contribute capital equally to MedMen Canada
for working capital purposes. MedMen Canada is focused on creating
a Canadian branded retail chain in provinces that permit private
retailers, branded products and research and development activities
in Canada. MedMen Canada will have access to our production
facilities while leveraging MedMen’s brand recognition. In
addition, the Company will be leveraging its regulatory expertise
and know-how to obtain
the requisite licenses, approvals and permits from Health Canada
for MedMen Canada to commence its operations.
|
| (i) |
On April 6, 2018, the Company announced the
closing of a bought deal offering, pursuant to which the Company
sold a total of 10,420,000 common shares at a price of $9.60 per
common share for aggregate gross proceeds of approximately
$100,000. The common shares were offered in the United States
pursuant to the Company’s effective registration statement on
Form F-10 filed with the
U.S. Securities and Exchange Commission and in Canada by way of a
short form prospectus offering.
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