Interest charge

Cronos Reports Delayed Third Quarter Results, Adds US$236.1 Million Impairment Charge

Cannabis producer Cronos Group Inc. (TSX: CRON) (Nasdaq: CRON) is once again up to date with its financial filings, following a delay in the release of its third quarter results announced in November.

At the time, the company said it planned to add an impairment charge of US$220 million to its second-quarter results. He had also received a delinquency letter from the Nasdaq stock market and issued a management cease trade order which is expected to be lifted in two days.

On Friday, Cronos announced that it was restating its second-quarter results, adding an impairment charge of $236.1 million.

The company also reported results for the three months ended Sept. 30, with sales up 52% ​​to $20.4 million from $13.4 million in the second quarter.

Read more: Cronos continues to fall after receiving delinquency letter from Nasdaq

Adjusted earnings before interest, taxes, depreciation and amortization fell 44% from US$32.6 million to minus US$46.8 million.

But the company reported net profit up 37% to $77.7 million from $56.8 million. In the third quarter, Cronos reported income of $132.9 million from gains on the revaluation of derivative liabilities.

The company ended the quarter with US$842.6 million in cash.

“We are delighted that the audit committee has completed its assessment and that Cronos Group is now up to date with the filing of our financial reports,” CEO Kurt Schmidt said in a statement.

“As we move forward, we are committed to improving our internal controls and financial reporting practices, maintaining the highest standards of transparency and accountability, and strengthening our capabilities and resources across all functions to support our strategy.

Schmidt also mentioned a “strategic realignment initiative” involving management cuts that is expected to result in cost savings of $20 million to $25 million this year.

Shares of the company fell 6% on Friday to $4.49 on the Toronto Stock Exchange. This is the lowest share price since December 7, 2017, a four-year low.

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