Cronos Group (TSX: CRON) on Friday after hours provided a bi-weekly management cease trade update in connection with its delayed financials. Included within, were details that the firm has now received a delinquency letter for its listing on the Nasdaq as a result of the firms failure to file financials by the deadline.
The delay in financials was originally announced by the company on November 9, when it revealed that it would be taking goodwill and intangible asset impairments of $220 million for the period ended June 30. The timeline suggests that the firm is in the process of restating its second quarter results, while being behind on its third quarter financials as a result.
The blame for the delay however was placed on the firms audit committee, who needed additional time for analyzing the degree of impairment. At the time, the company stated it expects to file its financials within sixty days, which puts them into early January for final release.
Within the update, the firm confirmed that there has been no material changes since the original announcement, and no other defaults have occurred. However, the company has received a delinquency letter from the Nasdaq, related to listing qualifications due to the delayed financials. The letter is said to have no immediate impact on the company, with further details not provided by the company.
Cronos Group last traded at $6.21 on the TSX.
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