The Conversation (0)
Pomerantz LLP is investigating claims on behalf of investors of Greenrose Acquisition Corp. ("Greenrose" or the "Company") (OTCMKTS: GNRS). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Greenrose and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On November 24, 2021, post-market, Greenrose disclosed in a U.S. Securities and Exchange Commission filing that "[i]n connection with the preparation of its financial statements as of September 30, 2021, [Greenrose's management] has re-evaluated the Company's application of ASC 480-10-S99 to its accounting classification of the redeemable shares of common stock, par value $0.0001 per share (the ‘Public Shares'), issued as part of the units sold in the Company's initial public offering (the ‘IPO') on February 13, 2020. Historically, a portion of the Public Shares was classified as permanent equity to maintain net tangible assets greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Pursuant to such re-evaluation, the Company's management has determined that the Public Shares include certain provisions that require classification of the Public Shares as temporary equity regardless of the minimum net tangible assets required to complete the Company's initial business combination." Accordingly, Greenrose advised that certain of the Company's financial statements would need to be restated and should no longer be relied upon, and that "[t]he Company's management has concluded that in light of the classification error described above, a material weakness exists in the Company's internal control over financial reporting and that the Company's disclosure controls and procedures were not effective[.]"
On this news, Greenrose's stock price fell $1.84 per share, or 20.13%, over the following two trading sessions, to close at $7.30 per share on November 29, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com .
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
