Cronos Group released its financial results for the third quarter of 2017.
Update on Production Operations
The Company is now growing cannabis in all of Buildings 2 and 3. Once a full cycle of harvests has been completed, the Company expects significantly more capacity than what has been historically produced (operating out of just Building 2). In addition, the Company has commenced production in newly renovated rooms in Building 1. The new Building 1 production methodology utilizes two-tier hydroponic rolling benches and full spectrum LED lighting. Similar to the existing operational production facility at OGBC, the Company will use Building 1 to grow cultivars that have non-standard flower cycles which the Company anticipates will fulfil niche market needs.
Strengthened liquidity position while minimizing equity dilution
Since the beginning of Q3 2017, the Company has raised $72.3 million to fund its operations and capacity expansion plans. Total capital raised includes: (i) a $40.0mm senior secured credit facility, the largest straight debt offering in the cannabis industry to date, based on publicly available information, and (ii) several equity raises at increasing share price levels. In order to minimize equity dilution, the company did not issue convertible notes or warrants in connection with these financings.