U.S. SEC costs hashish agency Cronos, its former government with accounting fraud

The U.S. Securities and Change Fee (SEC) on Monday mentioned it had entered right into a settlement with Canadian hashish firm Cronos (NASDAQ:CRON) and one among its former executives over costs of accounting fraud throughout a number of durations of time.

The settlement with the SEC comes simply days after Ontario’s securities regulator reportedly settled with Cronos (CRON) and Hilson.

The SEC didn’t impose a monetary penalty on the corporate as a part of the settlement. It additionally determined to not penalize Hilson as the previous government had already consented to pay about $54K to the Ontario Securities Fee.

“In three separate quarters between 2019 and 2021, Cronos submitted monetary statements with the SEC that contained materials accounting errors associated to, amongst different issues, income recognition and goodwill impairment,” the U.S. market regulator mentioned in an announcement.

The SEC added that in one of many quarters, Hilson had entered into undisclosed oral agreements to promote hashish uncooked materials and to repurchase hashish product.

Cronos (CRON) and Hilson didn’t admit or deny the SEC’s findings and have provided to settle the matter by “agreeing to stop and desist from future violations of the charged provisions.”

CRON had additionally agreed to retain an impartial advisor to evaluate its financing reporting and accounting controls.

CRON in Aug. reported $23.06M in web income for Q2.