Monday, September 15, 2025

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Cronos Group Announces 10.5% Investment Into US Operator PharmaCann

It appears that rules pertaining to ownership of US cannabis operations are loosening at the TSX Exchange and US big boards. Cronos Group (TSX: CRON) this morning announced that it has entered into an arrangement whereby a wholly owned subsidiary has acquired the option to purchase a stake in US operator PharmaCann.

The transaction will see Cronos, via a subsidiary, acquire an option to purchase a 10.5% ownership stake in PharmaCann, a multi-state operator. Much like Canopy Growth’s arrangement with Acreage Holdings, the final exercise of the option is to be dependent upon US federal legalization.

PharmaCann currently has six production facilities and 23 dispensaries within six states. The states, which include New York, Illinois, Maryland, Pennsylvania, Ohio and Massachusetts, are limited license states.

Under the terms of the transaction, Cronos paid $110.4 million to acquire the option in PharmaCann, which is to be paid directly to PharmaCann shareholders. Commercial agreements are expected to be entered into later this year that will see the two parties allowed to offer products through either party’s distribution channels. Cronos is also to be permitted to elect one director of PharmaCann once the option is exercised.

Notably, Michael Gorenstein, whom is executive chairman of Cronos, as well as Jason Adler, a director of Cronos, hold an indirect state in PharmaCann via their interest in Gotham Green Partners, whom is a shareholder of PharmaCann.

Cronos Group last traded at $10.82 on the TSX.


Information for this briefing was found via Sedar and Cronos Group. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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