Cronos Group Acquires CBD Beauty Line Producer
Cronos Group (NASDAQ: CRON) will soon have a new asset in its portfolio. The company announced Friday that it has agreed to acquire four operating subsidiaries of privately held Redwood Holding Group. This effectively means Cronos will become the new owner of the Lord Jones brand of CBD-based beauty products.
The cross-border deal will see the Canada-based Cronos pay roughly $300 million for the U.S. business, net of Redwood's estimated cash and debt. Of that amount, $225 million will consist of cash, with the remainder to be effected in newly issued Cronos stock.
The cash portion will be funded by cash on hand, the company said. This should be easily achievable for the company, which is notable for having a relatively strong cash position given the struggles marijuana companies have experienced with financing. At the end of its most recently reported quarter, Cronos' cash and short-term investments totaled $2.4 billion Canadian, or US$1.8 billion.
Quelle Fool.com
