Licensed Cannabis Producer Cronos Group Receives Buy Recommendation from PI Financial - Video Available on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - February 3, 2017) - Today's buy recommendation comes from PI Financial, which has initiated coverage on Cronos Group (TSXV: MJN), which currently trades under the name PharmaCan Capital, pending approval of the name change. Analyst Jason Zandberg gives the company a buy recommendation along with a speculative rating and a 12-month target of $3.00, a premium of 67% to the $1.80 price on January 17th, the day the report was issued.

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Cronos Group operates two wholly-owned Licensed Producers regulated within Health Canada's Access to Cannabis for Medical Purposes, Peace Naturals Project and In the Zone, and holds a portfolio of minority investments in other Licensed and Pre-Licensed Producers. The company is one of only four companies with multiple licenses to produce and sell medical marijuana.

Peace Naturals Project is located on a 90-acre property, the largest site for a Licensed Producer in Ontario, and has plans for 4 stages of expansion. Peace Naturals has a significant seed bank that was developed in the early days of the marijuana for medical purposes regime, before current regulations placed restrictions which limited new facilities to genetic banks that are a fraction of what Peace Natural carries.

Peace Naturals signed an agreement with their German partners which allows the company to supply dried flower for export to medical cannabis patients in Germany. The joint venture will sell 5 varieties to 200 pharmacies in Germany.

The BC-based operation, In the Zone, is located on a 31-acre property near Armstrong, in British Columbia's Okanagan region, the largest acreage for a Licensed Producer in BC. This facility received its sales license in January 2017 and there are plans for a 30,000-square foot venture with Indigenous Roots as well as plans for a 100,000 square foot greenhouse facility.

Analyst Jason Zandberg stated: "Current management has significantly added value since assuming control. The company has an aggressive expansion plan and its projects with First Nations and German partners have added its addressable beyond the traditional medical and recreational markets in Canada. We are forecasting revenue of $39.8 million in FY18 and $79.7 million in 2019."

The shares are currently trading at $1.74, well below the $3.00 price target, and with 121.5 million shares outstanding, the company is capitalized at $211.4 million.

For more information, please visit the company's website www.thecronosgroup.com, or contact Michael Krestell, Investor & Media Relations, at 416-603-7381 ext 236, or email michael@thecronosgroup.com.

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

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