Canadian cannabis producer Cronos Group has been slapped with sanctions, including an administrative penalty of 1.3 million Canadian dollars ($960,000), for improperly recognizing CA$7.6 million in revenue in its 2019 interim financial statements.
Ontario’s Capital Markets Tribunal on Monday approved a settlement between the Ontario Securities Commission (OSC) and Cronos regarding the accounting errors.
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The OSC found that Cronos improperly recognized the revenue in its first-, second- and third-quarter interim financial statements.
Cronos also overstated “virtually all” of its U.S. goodwill and a significant portion of its U.S. intangible assets by CA$234.9 million in the second quarter of 2021, the OSC said.
Those accounting errors resulted in the company restating interim financial statements for the three affected quarters.
In addition to the CA$1.3 million penalty, Cronos paid CA$40,000 to cover the cost of the OSC investigation.
Cronos will also have to pay for an “independent consultant,” acceptable to
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