TORONTO, May 5, 2017 /CNW/ - Cronos Group Inc.'s (TSXV:MJN) wholly owned licensed producer, the Peace Naturals Project Inc. ("Peace"), was notified on May 4, 2017 by Health Canada that upon testing a random cannabis leaf sample, trace levels of Piperonyl Butoxide (PBO) were discovered at 0.78 parts per million (ppm). PBO is an organic compound known as a synergist.

Peace's root cause analysis indicates that this was the result of cross-contamination from a sanitation protocol that is no longer practiced at Peace. The sanitation protocol has not been practiced since new management implemented an improved production methodology after taking control of Peace. The source of the PBO was a PMRA approved product that was used to sanitize empty rooms between harvests.

There is no evidence to suggest that PBO at these levels is likely to cause any adverse health effects when inhaled or ingested. However, out of an abundance of caution, Peace is in the process of assessing which lots have been impacted, notifying patients, and will voluntarily recall any products that have even potentially been implicated.

"Our first priority is the health and safety of our patients. We take safety testing seriously and are working closely with Health Canada to determine next steps. We are committed to demonstrating that Peace and the ACMPR are the global gold standard for safe, regulated cannabis," says Mike Gorenstein, Chief Executive Officer of Cronos Group.

Peace does not use unapproved pesticides and is supportive of Health Canada's initiatives to conduct random testing. Peace has been proactively pesticide testing its products in addition to the mandated safety testing required under the ACMPR. After sharing the results of these tests with Health Canada, Peace is confident that all products currently available for sale are not impacted and will not disrupt our provision of safe medicinal cannabis to our patients.

Peace Naturals was acquired by the Cronos Group in September 2016, replacing prior management, and has since been issued a Good Manufacturing Practice (GMP) certification in accordance with the rules governing medicinal products in the European Union. This is one of the highest standards a pharmaceutical manufacturer can meet for medicinal products.

About Cronos Group

Cronos Group, is a geographically diversified and vertically integrated cannabis company that operates two wholly-owned Licensed Producers ("LPs") regulated within Health Canada's Access to Cannabis for Medical Purposes Regulations (the "ACMPR") and holds a portfolio of minority investments in other Licensed Producers. The Company's flagship LPs, Peace Naturals Project Inc. (Ontario), and In The Zone Produce Ltd. (British Columbia) are collectively situated on over 125 acres of agricultural land and are currently licensed to produce 2,600 kg of cannabis on an annual basis. The Company also holds minority equity positions in Whistler Medical Marijuana and other Licensed Producers. Cronos Group is focused on building an international iconic brand portfolio, providing patients with compassionate and personalized care, and creating value for our shareholders.

Forward-looking statements

This news release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Except as required by law, Cronos Group disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements. This news release contains information obtained by Cronos Group from third parties. Cronos Group believes such information to be accurate but has not independently verified such information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please visit www.thecronosgroup.com.

SOURCE Cronos Group Inc.

For further information: Stefania Yarhi, Sr. Account Manager, Narrative, TEL: 416 930 0056, E-mail: [email protected]; Or Michael Krestell, Investor & Media Relations, TEL: 647-274-3655, E-mail: [email protected]

Related Links

www.thecronosgroup.com

