Stock Alert: Cronos Down 5%; To Restate Financial Statements

(RTTNews) - Shares of Cronos Group Inc. (CRON) are currently down nearly 5% after the marijuana company said it would have to restate certain 2019 financial statements.

Cronos said Tuesday that it would re-state three quarters of financial statements for 2019 because the company has been conducting an internal review of its bulk resin purchases and wholesale revenues.

The restatement is being made to eliminate certain of these transactions through the wholesale channel. The company will reduce revenue for the three months ended March 31, 2019 by C$2.5 million and the three months ended September 30, 2019 by C$5.1 million.

The company said its previously issued financial statement should not be relied on and the company's Form 10-K will likely report one or more material weaknesses in internal control related to financial reporting.

The company intends to file its fiscal 2019 financial statements by March 30, however, said that the COVID-19 pandemic could impact the filing date.

CRON is currently trading at $5.64, down $0.32 or 5.37%, on the Nasdaq. The stock is down 27% year-to-date and has plunged nearly 73% from last year's price.