It appears that money is no substitute for ability. Cronos Group (TSX: CRON) on Friday night provided its bi-weekly management cease trader order update related to its delayed financials, and it appears that the company has finally given the market insight into when its financials might actually be filed.
The Canadian cannabis firm, whom in its last financial filings indicated it had roughly $1.1 billion in cash, equivalents, and short term investments, has finally indicated that it expects to report its third quarter results by the end of January 2022, although they cannot assure this date. The filings were announced as delayed back in early November, after speculation related to a potential buyout among retail investors spread due to the delayed announcement for the release of financials.
The company is also at that time expected to file amended second quarter results for the period ended June 30, 2021, in which the company expects to record “not less than $220 million on goodwill and indefinite-lived intangible assets in its U.S. reporting unit.” This follows US$35.0 million in impairments on its US assets in early 2020, and a further $5.0 million in impairments on its Lord Jones brand. Lord Jones was acquired for US$300 million in 2019, much of which appears to be about to be written off just two years later.
Additional impairments on those assets “may” occur within the third quarter results for the period ended September 30, 2021. While impairments won’t impact cash, cash equivalents, or revenues, they do impact the firms total assets on the balance sheet.
Cronos Group last traded at $5.60 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
