TORONTO, Oct. 24, 2022 (GLOBE NEWSWIRE) — Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company”) immediately introduced that it has reached last settlement agreements with every of the U.S. Securities and Exchange Commission (the “SEC”) and the Staff of the Ontario Securities Commission (the “OSC”) that resolve these regulators’ investigations relating to the beforehand disclosed restatements by the Company of its monetary statements for the primary three quarters of 2019 and the second quarter of 2021.
“We are pleased to have resolved these matters,” stated Mike Gorenstein, Chairman, President and Chief Executive Officer of Cronos. “Important steps have been taken to strengthen our internal controls, and we are committed to continuing this work.”
SEC Settlement
On October 24, 2022, the SEC issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8(a) of the U.S. Securities Act of 1933 (the “Securities Act”) and Section 21(c) of the U.S. Securities Exchange Act of 1934 (the “Exchange Act”), Making Findings, and Imposing a Cease-and-Desist Order (the “SEC Settlement Order”) resolving the SEC’s investigation of the restatements by the Company described above.
The Company has agreed to settle with the SEC, with out admitting or denying the allegations described within the SEC Settlement Order. The SEC Settlement Order totally and at last disposes of the investigation of the Company by the SEC into the restatements with out the fee of any civil penalty or different quantity.
The SEC Settlement Order requires the Company to stop and desist from committing or inflicting any violations and any future violations of sure provisions of the U.S. federal securities legal guidelines. Additionally, the Company agreed to sure undertakings which embody, amongst different issues, retaining a certified impartial marketing consultant (the “Consultant”) to interact in a evaluation of, and make suggestions with respect to, sure of the Company’s inner accounting controls and inner management over financing reporting.
OSC Settlement
On October 24, 2022, the Ontario Capital Markets Tribunal accredited a settlement settlement (the “OSC Settlement Agreement”) between the Company and the employees of the OSC, resolving the OSC’s investigation of the restatements by the Company described above.
Pursuant to the phrases of the OSC Settlement Agreement, which totally and at last disposes of the investigation of the Company by the OSC, Cronos agreed to pay a complete of C$1.34 million to totally settle the matter and acknowledged that it had not complied with sure necessities underneath the Securities Act (Ontario) in reference to the submitting of interim monetary reviews within the method set out therein. Additionally, the Company agreed to retain the Consultant on considerably the identical phrases as have been required by the SEC pursuant to the SEC Settlement Order.
Additional Information
As a results of the SEC Settlement, the Company will probably be unable to depend on the personal providing exemptions offered by Regulations A and D underneath the Securities Act for a interval of 5 years; lose its standing as a well known seasoned issuer for a interval of three years; and be unable to depend on the secure harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 for a interval of three years.
For extra data relating to the SEC Settlement Order and the OSC Settlement Agreement, please see the Company’s Form 8-Ok filed on EDGAR at www.sec.gov/edgar and on the Company’s SEDAR profile at www.sedar.com.
About Cronos
Cronos is an modern international cannabinoid firm dedicated to constructing disruptive mental property by advancing hashish analysis, know-how and product improvement. With a ardour to responsibly elevate the buyer expertise, Cronos is constructing an iconic model portfolio. Cronos’ numerous worldwide model portfolio contains Spinach®, PEACE NATURALS®, Lord Jones®, Happy Dance® and PEACE+®. For extra details about Cronos and its manufacturers, please go to: thecronosgroup.com.
Cronos Contact
Shayne Laidlaw
Tel: (416) 504-0004
[email protected]
