On November 9, 2021, shares of CRONOS Group Inc. (NASDAQ: CRON) dropped nearly 16% after the company announced that it would not be able to timely file its third quarter earnings report. Later that same day, in a filing with the SEC, Cronos admitted it should have taken an impairment charge of at least $220 million, and that the company would be required to restate its financial statements for three and six months ending June 30, 2021.
Cronos Drops 16% on News of Financial Restatement
Cronos stock plummeted more than 15% after the company announced that it has been unable to file financial statements with the SEC because its audit committee needs more time to evaluate certain items.
“[T]he Company concluded that it should have recorded an impairment charge of not less than $220 million on goodwill and indefinite-lived intangible assets in its U.S. reporting unit for the three and six months ended June 30, 2021. The Company will restate its unaudited interim financial statements for the three and six months ended June 30, 2021, accordingly.”
On this news, the stock dropped more than 15% to close at $5.70 causing significant harm to investors.
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