Cronos Australia Closes AUD$20m IPO with Strong Investor Support
MELBOURNE, Australia, Oct. 25, 2019 /PRNewswire/ -- Australian medicinal cannabis company Cronos Australia Ltd ("Cronos Australia" or "the Company") has closed its AUD$20 million initial public offer of shares (the "Offer"), saying the Offer has attracted strong support from investors.
Cronos Australia intends to become a leading supplier of cannabis products in Australia's emerging cannabis industry and, as regulations change and markets open, a supplier and exporter to the Asia-Pacific region.
Cronos Australia aims to generate revenue by importing and distributing PEACE NATURALS™ medicinal cannabis branded products into the Australian market while also developing its own branded products.
Cronos Australia expects to start trading on the Australian Securities Exchange (ASX) on a deferred settlement basis on Thursday, 7th November, 2019.
Cronos Australia Chairman Shane Tanner said the Company is encouraged by the strength of investor support for the Offer.
"We believe it validates our asset-light business model, the commercial focus of our management team and our growth plans," Mr. Tanner said. "We look forward to building the Company into a leader in medicinal cannabis in Australia and the Asia-Pacific region and creating value for shareholders."
Cronos Australia offered 40 million ordinary shares to investors at an issue price of 50 cents per share, to raise AUD$20 million. The Offer was managed and underwritten by Bell Potter Securities Limited.
"With the closing of the Offer, we are excited about delivering on the vision of Cronos Australia to become a leading health and wellness company in the Asia-Pacific region through the distribution of premium medicinal cannabis products and brands," Cronos Australia Chief Executive Officer Rodney Cocks said.
The Offer comprised a Broker Firm Offer open to Australian resident investors who received an allocation from their broker; the Chairman's List Offer, which was open to investors in Australia nominated by Cronos Australia; and the Institutional Offer, which was open to institutional investors. No general public offer of the shares was made under the Offer.
The funds raised under the Offer will be used for development of brands, products and the business; patient acquisition and practitioner engagement; contract manufacturing management; research and development; working capital; and to meet the costs of the Offer.
Cronos Australia expects to have an indicative market capitalisation of approximately AUD$64.4 million upon completion of the Offer.
About Cronos Australia
Cronos Australia Limited was established as a 50:50 joint venture between global cannabinoid company Cronos Group Inc (dual-listed – NASDAQ: CRON, TSX: CRON) and NewSouthern Capital. The Company was formed to accelerate growth and capture opportunities relating to the emerging cannabis industry both domestically and internationally. The vision of Cronos Australia is to become a leading health and wellness company in the Asia Pacific region through the distribution of premium cannabis products.
SOURCE Cronos Australia