Cronos terminates sale agreement, shares drop 3.9%

Cronos Group Inc. (NASDAQ: CRON) has announced the termination of its agreement with Future Farmco Canada Inc. for the sale and leaseback of its property located at 4491 Concession 12 Sunnidale Road, Stayner, Ontario, Canada. As a result of the termination, all amounts paid by the buyer as part of a security deposit have been returned in accordance with the sale agreement.

The termination of the sale agreement was due to the buyer's failure to satisfy or waive its due diligence and financing condition by the May 27, 2024 deadline, as set forth in the agreement.

As a result of this termination, Cronos Group Inc. is now evaluating its strategic options for the Peace Naturals Campus, which may include continuing and expanding operations at the facility.

This development comes as Cronos Group Inc. continues to position itself as an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology, and product development. The company is also focused on responsibly elevating the consumer experience while building an iconic brand portfolio, which includes Spinach®, Peace Naturals®, and Lord Jones®.

This move marks a significant shift in the company's strategic direction regarding the Peace Naturals Campus and will likely impact its future financial and operational performance. Following these announcements, the company's shares moved -3.9%, and are now trading at a price of $2.58. For more information, read the company's full 8-K submission here.

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