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”) and disclosing receipt of a Nasdaq Listing delinquency letter.
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Officer of the Company until two full business days following the filing of the Required Filings and the MCTO has been revoked.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 confirms that since the date of the Original Announcement: (i) 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’s management continues to work diligently to complete the Required Filings. 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.
The Company has received a written notice from the Listing Qualifications Department of Nasdaq, dated November 16, 2021 (the “Notice”), notifying the Company that it is not in compliance with the requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) because it did not timely file the Form 10-Q. The Notice has no current impact on the listing or trading of the Company’s common stock on the Nasdaq Stock Market.
