Cronos Group Inc CRON shares fell as much as 8.16% to $2.70 during Monday’s after-hours session after the SEC said it charged the Canadian cannabis company and former senior executive with accounting fraud.
What Happened?
According to documents related to the matter, the SEC Says, ‘This matter concerns accounting violations by Cronos, a Canadian cannabis company, which occurred in its first years operating as a U.S. publicly-traded issuer.’ The SEC deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted against Cronos.
The documents related to the accounting situation state that “also between 2019 and 2021, Cronos furnished to and/or filed with the Commission, financial statements in three separate quarters that contained material accounting errors.”
“In two of the three quarters—the first quarter of 2019 and the third quarter of 2019—Cronos improperly recognized revenue in connection with certain transactions with the same counter-party where the sale of cannabis raw materials (or cannabis flower) by Cronos occurred simultaneously with the purchase by Cronos of processed cannabis product,” the filing says.
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According to data from Benzinga Pro, Cronos Group has a 52-week high of $6.79 and a 52-week low of $2.57.
Image and article originally from www.benzinga.com. Read the original article here.