Cronos (CRON) Set to Expand to the Netherlands With the Acquisition of Europe's Largest Adult-Use Cannabis Company

Cronos Group Inc. (NASDAQ:CRON) is one of the best long-term penny stocks to invest in. Cronos Group Inc. (NASDAQ:CRON) announced on December 9 that its wholly-owned subsidiary entered into a definitive share sale and purchase agreement for the acquisition of all the outstanding shares of CanAdelaar B.V., which is the largest cannabis company in operation in the adult-use cannabis pilot program (the Wietexperiment) in the Netherlands.

The Purchase Agreement entails that CanAdelaar shares will be acquired for an up-front consideration of €57.5 million, or $67.0 million, subject to particular customary adjustments. Additional contingent consideration would be payable in cash based on 0.5x of CanAdelaar’s normalized EBITDA in 2026 and 2027.

Management stated that the acquisition of CanAdelaar by Cronos Group Inc. (NASDAQ:CRON) marks a “highly strategic” and “financially compelling” transaction that would support the company in establishing a strategic footprint in Europe while also enabling it to leverage its investments in borderless products.

Since the Netherlands has a deep cannabis heritage, with its coffee shops recognised as playing a critical role in the development of the legal cannabis industry, Cronos Group Inc. (NASDAQ:CRON) believes that European expansion marks a significant area of focus for the company’s prospects.

Cronos Group Inc. (NASDAQ:CRON) is involved in the production and distribution of cannabis, and operates through Israel and Canada segments.

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Disclosure: None. This article is originally published at Insider Monkey.