Brenda O’Farrell
Investing.com – Shares of cannabis grower Cronos Group Inc (TSX:CRON)(NASDAQ:CRON) were down more than 13% in the late afternoon Tuesday, trading at $6.95 (US$5.19) after the company issued a statement late Monday requesting an extension to file its annual report for the fiscal year that ended on Dec. 31, 2019.
The company has asked the U.S. Securities and Exchange Commission for a 15-day extension, explaining it is unable to finalize its financial statements “due to a continuing review by the audit committee of the company’s board of directors, with the assistance of outside counsel and forensic accountants, of bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.”
Cronos stated it plans to release its fourth-quarter and full-year financial results before the 15-day extension expires, but it could not provide any assurances it would be able to meet that deadline.
Last month, the Toronto-based marijuana cultivator announced it was postponing its conference call scheduled for Feb. 27 to discuss its latest earnings.
Shares of Cronos have dropped more than 72% in the last 12 months. They hit their peak in February 2019, four months after Canada legalized marijuana, but have been on a steady downward trajectory since the latter half of last year.