Cronos Group Inc. Announces Final Settlement Agreements

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") today announced that it has reached final settlement agreements with each of the U.S. Securities and Exchange Commission (the "SEC") and the Staff of the Ontario Securities Commission (the "OSC") that resolve those regulators' investigations regarding the previously disclosed restatements by the Company of its financial statements for the first three quarters of 2019 and the second quarter of 2021.

"We are pleased to have resolved these matters," said 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, without admitting or denying the allegations described in the SEC Settlement Order. The SEC Settlement Order fully and finally disposes of the investigation of the Company by the SEC into the restatements without the payment of any civil penalty or other amount.

The SEC Settlement Order requires the Company to cease and desist from committing or causing any violations and any future violations of certain provisions of the U.S. federal securities laws. Additionally, the Company agreed to certain undertakings which include, among other things, retaining a qualified independent consultant (the "Consultant") to engage in a review of, and make recommendations with respect to, certain of the Company's internal accounting controls and internal control over financing reporting.

OSC Settlement
On October 24, 2022, the Ontario Capital Markets Tribunal approved a settlement agreement (the "OSC Settlement Agreement") between the Company and the staff of the OSC, resolving the OSC's investigation of the restatements by the Company described above.

Pursuant to the terms of the OSC Settlement Agreement, which fully and finally disposes of the investigation of the Company by the OSC, Cronos agreed to pay a total of C$1.34 million to fully settle the matter and acknowledged that it had not complied with certain requirements under the Securities Act (Ontario) in connection with the filing of interim financial reports in the manner set out therein. Additionally, the Company agreed to retain the Consultant on substantially the same terms as were required by the SEC pursuant to the SEC Settlement Order.

Additional Information
As a result of the SEC Settlement, the Company will be unable to rely on the private offering exemptions provided by Regulations A and D under the Securities Act for a period of five years; lose its status as a well-known seasoned issuer for a period of three years; and be unable to rely on the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 for a period of three years.

For more information regarding the SEC Settlement Order and the OSC Settlement Agreement, please see the Company's Form 8-K filed on EDGAR at www.sec.gov/edgar and on the Company's SEDAR profile at www.sedar.com.

About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® , Lord Jones ® , Happy Dance ® and PEACE+ ® . For more information about Cronos and its brands, please visit: thecronosgroup.com.

Cronos Contact
Shayne Laidlaw
Tel: (416) 504-0004
investor.relations@thecronosgroup.com


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

CRON:CA,CRON
The Conversation (0)
Cannabis Investing

Ongoing Growth in North America’s Cannabis Space

An article curated by Bazinga highlighted the cannabis market trends from last week. Even though last week was short, the cannabis sector was a busy. The article went on to highlight a number of the cannabis companies looking preparing for their IPOs, among other cannabis related news.

The article went on to highlight the Flowr Corporation as one of numerous companies looking to go public by the end of the year. Flowr’s management team is responsible for the creation and success of MedReleaf, an R&D focused company in the medical cannabis space. In preparation for its RTO in Canada, the company has raised $36 million in financing.

Keep reading...Show less

Trulieve to Open Medical Cannabis Dispensary in Tampa, Florida

New Hillsborough County location will host grand opening celebration Friday December 13

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of a new medical cannabis dispensary in Tampa, Florida .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Cannabis leaves, US flag.

Cannabis Round-Up: DEA Postpones Rescheduling Hearing, Key Players Share Quarterly Results

November was a busy month for the cannabis industry, with a slew of US-centric developments.

A hearing on cannabis rescheduling was postponed until 2025, although the incoming Trump administration has signaled its intent to follow through on the change despite opposition from some Republican lawmakers.

Meanwhile, several states voted on cannabis measures, and companies reported their latest quarterly results.

Keep reading...Show less
Cannabis plants and a stock chart.

US Cannabis Sales Hit Record in October, Market Set to Reach US$55 Billion by 2030

Cannabis sales in the US reached a record high in October, with retail transactions totaling approximately US$2.8 billion, according to data from LeafLink, a wholesale cannabis platform.

While sales saw a slight 2.1 percent dip compared to September, they were up 6.2 percent year-on-year. Total retail cannabis sales in 2024 are expected to hit US$32.6 billion, representing a 10.8 percent increase over the previous year.

LeafLink attributes much of this growth to new licenses in states such as New York, New Jersey and Ohio.

Keep reading...Show less
Australia flag and cannabis.

Australian Senate Rejects Greens' Bill to Legalise Cannabis

The Australian Greens announced on Wednesday, November 27, that the Legalising Cannabis Bill 2023 was defeated in a 13 to 24 vote, preventing the federal legalisation of cannabis.

“The Labor and Coalition parties joined together to try and hold Australia back in the 1950s by blocking this desperately needed reform,” said Greens Senator for New South Wales David Shoebridge.

Shoebridge said on X that the parties “teamed up” to vote against legalizing cannabis in the Senate, “yet another example of the major parties working together to refuse any sort of progress.”

All 11 Greens Senators voted in favour of the Bill, as did Independent Senators Lidia Thorpe and Tammy Tyrrell.

Keep reading...Show less
Cannabis and Australian money.

Victoria Amends Driving Rules for Medicinal Cannabis Users, Changes Effective in Mid-2025

Both houses of parliament in Victoria, Australia, have successfully passed the Roads and Road Safety Legislation Amendment Bill 2024, Cannabis Council Australia said in a recent newsletter.

The organisation sees this as a “promising development” in the area, calling it a “critical legislative milestone." The bill's passing will allow for judicial discretion when decisions about medicinal cannabis are made.

Magistrates will now have the ability to evaluate individual cases where drivers who hold valid medicinal cannabis prescriptions test positive for THC, but show no signs of impairment.

Keep reading...Show less

Trulieve to Open Medical Cannabis Dispensary in Jacksonville, Florida

New Duval County location will host grand opening celebration Friday, December 6 th

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., announced the opening of a new medical cannabis dispensary in Jacksonville, Florida on Saturday, November 23 .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×