Cronos Australia Limited announced that the physical CDA Clinics on the Gold Coast, Brisbane and Sunshine Coast will close by 31 March 2023 and transition to a 100% telehealth service. These changes deliver significant overhead cost savings to the Company, continued quality patient care and a highly scalable business model. Currently, more than 95% of all patient consults by CDA Clinics are undertaken via telehealth and the changes respond to patient preferences and the rapid adoption of telehealth during the COVID-19 pandemic.

Additionally, the CDA Dispensary at the Gold Coast clinic will cease operations as part of the transition to 100% telehealth. Patients who were being dispensed medicinal cannabis products at that location will have their scripts filled by one of the 3,200+ partner pharmacies on the CanView platform. With the Company's continued growth, Cronos intends to run a process to redeploy impacted staff into other roles within the business, where possible.

While there may be a small number of job losses from this process, the Company expects the impact to be minimal.