Cronos Group Delays Financials Due To At Least $220 Million In Goodwill, Intangible Asset Impairments
While some people are currently speculating that Cronos Group (TSX: CRON) hasn’t announced a filing date for its latest set of financials because of a potential takeover by Altria (NYSE: MO), – the equity moved 25.6% yesterday on the back of the rumour – it appears there’s actually a much simpler reason for the delay.
The firm has simply failed to get its financials completed in a timely manner, despite the billions of dollars it has at its disposal.
The firm this morning filed a Form 12b-45, indicating that its quarterly financial results would be delayed for the period ended September 30, 2021. The company placed blame on its audit committee, whom is in need of extra time to “evaluate goodwill and indefinite-lived intangible assets in the Company’s U.S. reporting unit for impairment.”
As it turns out, rather than be acquired in a deal that never made sense, the company instead is looking to impair at least $220 million of goodwill and intangible assets on its balance sheet for the three month period ended June 30, with further impairments expected for the three months ended September 30. The impairments are expected to delay the firms financial results beyond the five day grace period allowed by Form12b-45.
Finally, the company intends to complete the filings within 60 days, however it cannot assure shareholders at this time that they will in fact be complete. The company as a result has filed for a management cease trade order in Canada to avoid being halted entirely.
Cronos Group last traded at $8.35 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.