Canadian cannabis company Cronos reached a settlement with the Securities and Exchange Commission over accounting issues. The company will not pay any financial penalty, and entered into a no-admit, no-deny settlement. It agreed to cease and desist from future violations of the charged provisions and to retain an independent compliance consultant for a 120-day review to make recommendations about the company’s financial reporting and accounting controls.
The SEC praised the company’s cooperation in its October 24 announcement: “Cronos avoided penalties by promptly self-reporting its accounting misconduct as it came to light within the company, cooperating with our investigation, and promptly taking effective remedial steps.”
The S&C team that advised Cronos’ Audit Committee throughout the investigation included Adam Paris, Tony Lewis, Alexa Cover, and Jonathan Kwortek.