Cronos Group Provides Bi-Weekly MCTO Status Update
Cronos Group Inc. (NASDAQ: CRON) provides a default status report in compliance with NP 12-203 due to a management cease trade order (MCTO) stemming from its inability to file the Quarterly Report on Form 10-Q for Q3 2021 on time. The MCTO, issued on November 16, 2021, restricts trading by the CEO and CFO until the Required Filings are completed. The company aims to submit these filings by January 31, 2022, though this is not guaranteed. Cronos confirms no other significant changes since its initial announcement and will continue to comply with NP 12-203 guidelines.
- Management is actively working towards completing the Required Filings by the anticipated timeline of January 31, 2022.
- The company has confirmed no material changes since the Original Announcement, maintaining transparency.
- The issuance of the MCTO indicates a failure to meet regulatory filing deadlines, which may raise concerns among investors.
- The company's inability to file its quarterly report could lead to increased scrutiny from regulators and impact investor confidence.
TORONTO, Dec. 31, 2021 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) is providing a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”).
On November 9, 2021, the Company announced that it applied for a management cease trade order (“MCTO”) with the applicable securities regulatory authorities in Canada on the basis that the Company would be unable to file its Quarterly Report on Form 10-Q for the period ended September 30, 2021 (the “Form 10-Q”) with the U.S. Securities and Exchange Commission (the “SEC”), together with its corresponding quarterly filings in Canada (collectively, the “Required Filings”), by the applicable filing deadlines (the “Original Announcement”). The MCTO was issued on November 16, 2021 and restricts all trading in securities of the Company, whether direct or indirect, by the Chief Executive Officer and Chief Financial Officer of the Company until two full business days following the filing of the Required Filings and the MCTO has been revoked. The MCTO does not affect the ability of other shareholders of the Company to trade their securities.
The Company’s management continues to work diligently to complete the Required Filings and, as previously disclosed by the Company on December 17, 2021, anticipates, but cannot assure, that the Required Filings will be filed by January 31, 2022.
The Company confirms that since the date of the Original Announcement: (i) other than as described above, there has been no material change to the information set out in the Original Announcement that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.
The Company confirms it will continue to satisfy the provisions of the alternative information guidelines set out in NP 12-203 so long as it remains in default of the requirement to file the Required Filings.
About Cronos Group Inc.
Cronos Group is an innovative global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Group’s portfolio includes PEACE NATURALS™, a global wellness platform, two adult-use brands, COVE™ and Spinach™, and three U.S. hemp-derived CBD brands, Lord Jones™, Happy Dance™ and PEACE+™. For more information about Cronos Group and its brands, please visit: thecronosgroup.com.
Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include the duration of the MCTO and the Company’s ability to complete the Required Filings and continue to satisfy the information guidelines set out in NP 12-203. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause the actual filing time of the Required Filings to be materially different from the estimated future filing time or prevent us from complying with the requirements of NP 12-203 and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2021 and the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2021, each of which have been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos Group disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
Cronos Group Contact
Shayne Laidlaw
Investor Relations
Tel: (416) 504-0004
Investor.relations@thecronosgroup.com
FAQ
What does the management cease trade order (MCTO) mean for Cronos Group (CRON)?
When will Cronos Group (CRON) file its required quarterly reports?
What regulatory guidelines is Cronos Group (CRON) following during this default status?
Has there been any material change in Cronos Group (CRON) since the original announcement?
