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Tuesday, Jun 28, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Cronos continues to tumble after receiving Nasdaq delinquency letter

The letter has no current impact on its listing, company says

Cronos continues to tumble after receiving Nasdaq delinquency letter
Image via Cronos

Stock in cannabis giant Cronos Group Inc. (TSX: CRON) (Nasdaq: CRON) has fallen around 19 per cent since it said Nov. 9 that it was delaying its third-quarter results, and adding an expected impairment charge of $220 million in the second quarter.

And after hours on Friday the firm issued a statement saying it had received a delinquency letter from the Nasdaq, dated Nov. 16, notifying the company that it’s not in compliance with listing requirements because of the results delay.

“The notice has no current impact on the listing or trading of the company’s common stock on the Nasdaq Stock Market,” Cronos said in the statement.

On Nov. 9, the firm filed a management cease trade order (MCTO), barring its CEO and CFO from trading securities in the company until two business days after the required filings are submitted.

Read more: Cronos continues cash burn with US$161M loss in Q1

Cronos said it was working to complete the filings within 60 days, which would slate them for release early in January.

As of Friday, the firm said nothing had changed.

Mugglehead has reached out to Cronos for details regarding a restatement of second-quarter results, expected impact on Nasdaq listing as well as an updated timeline for the unfiled documents.

On Tuesday, company stock was trading around US$4.66 on the Nasdaq.


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