The Globe & Mail reports the following
The Ontario Securities Commission is placing sanctions on cannabis company Cronos Group Inc. and a former executive for failing to file accurate financial statements after the company twice made revisions.
The OSC said Cronos overstated its revenue figures by $7.6-million in the first three quarters of 2019, in part by booking sales on transactions with other companies that failed to meet accounting rules. The company also overstated its assets by US$235-million in its second-quarter 2021 financial statements, the regulator said.
The OSC has entered into settlement agreements with Cronos and former chief financial officer William Hilson. A hearing is scheduled Monday at the Capital Markets Tribunal, the regulator’s adjudicative wing, to consider them. Until then, details of the settlements are unavailable.
In an e-mailed statement from its lawyer, Cronos said it was unable to comment while the settlement details remain confidential. Mr. Hilson did not respond to a message sent via LinkedIn. The OSC announced the allegations after 5 p.m. Toronto time.
Cronos currently has a market value of about $1.5-billion, but in the heady early days of Canadian legalization, it was one of the most valuable cannabis companies in Canada. At the time of the misstated sales, its market value was nearly $11-billion, and its share price had tripled over the previous year.